Today’s Monster Day

We had a spectacular rally today. By my numbers, this was the eighth-best day following an up day for the S&P 500 in the last 70 years. There have been other strong days, but they often came after big down days. Yesterday, we were up slightly.

The Dow gained 490 points today which was its best day since March 2009. What impressed me was that we continued to rally into the close which means that investors aren’t so afraid to hold stocks overnight.

While the S&P 500 gained 4.33%, which is about 470 billion in market cap, our Buy List trailed the market gaining 3.91%. The shortfall was due to Jos. A. Bank ($JOSB) which was our only losing stock today. Shares of JOSB dropped by 3.7% due to today’s warning although they had been much lower.

Seven of our stocks were up more than 6%, three were up by more than 7% and JPMorgan Chase ($JPM) added 8.4% for the day. As I suspected this morning, today was a huge day for cyclical stocks. The Morgan Stanley Cyclical Index ($CYC) jumped 5.92% today to close at 900.46. The $VIX plunged 9.3% to 27.80.

Posted by on November 30th, 2011 at 5:06 pm

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