Why The Dow Closed So Low (Again)

Stocks posted modest declines today, but it was enough for the Dow Jones Industrial Average to close at its lows for the year.

It was a frustrating session, because stocks seem oversold, especially after Friday's 322 point drop in the Dow. But volume was light until the last half hour, as there seemed to be little interest in picking up stocks at a discount.

The problem is too much headline risk — who knows when someone will make another comment about some country in Europe that may or may not be having debt problems. It’s all a little wearying, and a lot of traders have clearly decided to lighten up and step to the sidelines until things get a little clearer.

Elsewhere, gold and silver advanced, but copper is sitting at its lowest level since October, 2009.

Truth is, base metals in general have been deteriorating: zinc, aluminum, and lead are at their lowest levels since August 2009; nickel since February of this year.

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