The Closing Look

Stocks opened higher but ended near their lows as seller showed up in the afternoon. Before the open, rumor spread that central banks and governments should begin buying bank stocks to boost the market. Meanwhile, the US dollar fell to a fresh 9-month low which sent gold, silver and several other commodities higher. In other news, Goldman Sachs ($GS) will pay $5 billion to settle federal and state probes from before the financial crisis. The Justice Department settled with GS regarding the sale of mortgage-backed securities.

Gary’s Thoughts: Another day of gapping up only to sell off. Normally, we would be very negative on that but with central banks and governments now targeting stocks???????

Gold…gold…gold…gold stocks are leading.

Goldman produced product…sold that product…and then shorted it at the same time! Enough said!