Courtesy of John Nyaradi.
Stocks stagger into year end on last trading day of 2011.
Major U.S. stock indexes faded late on a quiet day to end the year mixed and on a weak note.
The Dow Jones Industrial Average (NYSEARCA:DIA) declined -0.6% on the day but finished 2011 with a 5.5% yearly gain.
The S&P 500 (NYSEARCA:SPY) finished down 0.4% for the day and virtually flat for 2011, closing a fraction below its 2010 close.
The Nasdaq 100 (NYSEARCA:QQQ) declined 1.8% for the year while the Russell 2000 (NYSEARCA:IWM) lost -0.6% for the day and -5.5% for 2011.
In other markets, gold (NYSEARCA:GLD) gained 10% for the year and oil (NYSEARCA:USO) added 8.2%. One of the year’s top performing asset classes was U.S. Treasury Bonds (NYSEARCA:TLT) with a gain of 9.6% for 2011.
Weak End To A Volatile Year
While 2011 was one of the most volatile years on record, the widely watched S&P 500 (NYSEARCA:SPY) finished flat for the year and closed fractionally below its 200 day moving average, the widely watched demarcation line between bull and bear markets. The index was on track for a small yearly gain until late in the day when a last minute sell off put it into negative territory for the year and finish 2011 with the smallest yearly change since 1947.
chart courtesy of www.stockcharts.com
In the 1 minute chart above of the S&P 500 (NYSEARCA:SPY) we can see how the index sold off in the last hour of thin holiday trading to end the year at session lows.
Bottom line: 2011 was marked by volatility and the ongoing crisis in Europe. 2012 will quite likely have similar characteristics as the global economy faces uncertainty in Europe, slowing growth and and election year in the United States.
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