Monday, January 5, 2009

Stocks slip back

No big sell off today but there was at least a mood of caution as some investors took some money off the table after the string of gains last week. The Dow fell back to 8952 and the S&P to 927. Mumbai fared better as stocks added another 3% with an impressive end of the day rally. The Sensex closed at 10,275 and the Nifty at 3121.

I think we will see more caution come into the market this week as the influence of Jupiter wanes and the disruptive influence of Mercury-Rahu builds towards Friday. I wouldn't rule out some gains tomorrow in the US, but they are unlikely to be anything major. Gold fell $20 today so that is also a welcome development as the US dollar made up some lost ground as the Euro lost 3 cents. Hopefully we will see these trends continue further and watch gold really being to fall back towards longer term support levels in the coming weeks.