Jim Dondero comments on Short Covering in latest upward Stock Market

Gold still finished just under $1100 per ounce at and up by $1.90 at $1,096.30 per ounce. So if all of the other indicators are falling, gold is still on the rise. Times are tough in 2016 for the investor as the market has been tumbling down each day of the new year up until January 22, 2016. Finally the S and P has taken an upward swing. The release of the new iPhone 7 has stock advisors suggesting purchases of Apple stock now as there is an expected price hike by 50% a share before the new release in September.

Many other indicators were up including the Crude Oil barrel price and the oil itself, which closed at $32, the highest price per barrel since January 8th of 2016. The price had been in free fall making the barrel worth more than its contents at one point when it sunk to $29 per barrel just days ago. Chris Gaffney of EverBank World Markets suggests that “It is all about oil today. We were able to continue a rally in oil or at least have oil stop falling and come back up a bit. That’s got equity investors dipping their toes in the market again.” He went on to state that investors such as Draghi will pull his investment out as other big investors will do everything possible to support the markets.

Altogether the Dow Jones industrial average closed some 210 points over 16,000 with Apple showing the highest gains along with Goldman Sachs delivering the most gains of the day as the Dow reached 250 at one point that afternoon. Despite these gains as a whole the U.S. Stock market has been extremely under performing for the year thus far. All major U.S. Averages were down by 6.6% or more for 2016, a 10 percent fall under the 52-week intraday highs known as market correction metrics. Experts at Highland Capital such as Joe Sowin and Jim Dondero see this as a rally caused by short covering with energy and materials stocks leading the way for the recovery.

Jim Dondero of Highland Capital, a CPA, CFA, 30 year leader in hedge fund management, innovator of the Collateralized Loan Obligation, President, CEO and co-founder of the company located in Dallas, Texas, has sound perception of these rare market fluctuations. It is true that the markets are in uncharted territories these last few weeks due to the global struggle with each of its markets. China has been slowing its roaring economy with more indications that despite its healthy GPA number, relatively speaking, it is a tanking economy just as many of the other major economies.

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