Investors came back in a buying mood after the weekend following last week’s absolutely dismal performance on Wall Street. Major equity indexes managed to snap out of their losing streaks to kick-off the week; the Nasdaq soared ahead, gaining an impressive 2.46% on the day, while the Dow Jones Industrial Average lagged behind, clinching a 1.09% gain as the closing bell rang. Crude oil rallied alongside stocks today as well; futures prices for the fossil fuel gained upwards of 1% on the day, settling near $93 a barrel as the trading session drew to a close [see also Using ETFs To Measure Interest Rate Risk].
With no major economic data releases on the home front today, investors took the time to bargain shop. The Chicago Fed Index came in worse-than-expected, although the data release went largely unnoticed as the comeback on Wall Street stole the headlines. With no real news stemming from the debt burdened Euro zone, investors had the front cleared for a rally, and price action appropriately followed. Needless to say, uncertainty levels remain elevated given the looming debt drama overseas, which has a tendency to resurface in the most inconvenient of times [see also 3 ETF Trading Tips You Are Missing].
The Van Eck Market Vectors Gold Miners (GDX) was one of the best performers, gaining 3.43% on the day. Gold futures sank in overnight trading to start off the week, although bullish price action during Wall Street hours bolstered the metal higher as well as mining stocks. Futures prices for the precious yellow metal settled near the $1,590 level, while shares of GDX spiked early in the morning and managed to hold onto gains as the trading session drew to a close, finishing near $43 a share [see also GLD-Free Gold Bug ETFdb Portfolio].
The Barclays iPath S&P 500 VIX Short-Term Futures ETN (VXX) was one of the worst performers, shedding a dismal 11% on the day. Buying euphoria sank the Volatility Index below the 25 level as the opening bell rang, with the VIX settling right above the 22 mark as the trading session drew to a close. Although uncertainty level have decreased from last week, Euro zone debt woes remain a key concern and any worrisome news from overseas are sure to propel volatility levels higher [see also How To Hedge For A Market Correction With ETFs].
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Disclosure: No positions at time of writing.