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The stock market is closed today in observance of the 4th of July holiday. The 4th isn’t until tomorrow, of course, but we like to observe holidays by closing things down. And perhaps that is just as well. After yesterday’s 223-point disaster for the Dow, it’s probably a good time for a break. Perhaps the long holiday weekend will perk up investors enough that they will be ready to make a credible rally attempt on Monday.

So, while we have no new stock market news today, I thought it would be a good time for reflection. As always, our holidays and observations are often lost in celebrations that tend to leave us forgetful of why we are celebrating in the first place. This is a good time to think about the beginnings of our nation, and to consider what we are doing today to make it better. Most of us citizens will probably never put our lives on the line for our ideals. (Military servicemembers do it all the time, however, and for that the rest of us should be grateful.) However, there are other things we can do to be good citizens. And we should try to be good citizens.

What “patriotic” and “good citizenship” mean are subjective. To me, it means being informed, trying to live a good life, being involved in the community in some way, exercising my rights and teaching my son to be a good citizen. To you, it might mean something else entirely. However, it is a good time to reflect on what you think good citizenship entails, and then try to make a plan to live out your idea.

So, take a minute to reflect on what made those who came before good citizens and consider emulating some of their qualities. It’s the perfect time for it.

Happy 4th of July!

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The stock market has been open for less than an hour, and already it’s a major bloodbath. U.S. stock futures pointed to a lower open today, but I’m not sure how many people expected this. The Dow is already down by more than 170 points and heading toward 180. (Will the Dow lose more than 200 points? The day is young enough that it might.) The Nasdaq and the S&P 500 are also lower.

After yesterday’s optimistic open to the 3rd quarter, things have turned pessimistic quickly. Even though yesterday’s disappointing ADP employment data prepared investors for today’s news, it still remains an unpleasant reality. Even the fact that unemployment is now sitting at 9.5%, instead of the expected 9.6%, is providing little in the way of hope. The bears are out for vengeance today, and they are getting it.

U.S. dollar gains on risk aversion

Normally, this sort of bad economic news would send a currency lower. But that is not how things have been working this recession. Instead, the U.S. dollar has been seen as a safe haven currency, providing investors with a place to preserve their capital in uncertain times. With stocks dropping so precipitously today, it is no surprise that the greenback is taking the upper hand against the euro and the pound. Those are two currencies that people turn to when they want higher returns and can stomach risk. In the current environment, investors are fleeing risk in return for safety.

Even though there has been talk of a decline in the value of the U.S. dollar due to future inflation and high government debt, in the short-term, the dollar is likely to remain reasonably strong. The greenback is supported by the world’s most reliable taxpayer base, and that means that it will likely remain in demand as a safe haven investment until economic recovery begins.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

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Optimism is in good supply today as the stock market bulls take over. The Dow is up almost 100 points, with three hours remaining, after starting up higher out of the gate. The Nasdaq is up 20 points, and the S&P 500 is approaching a gain of 10 points. So far, it appears like today isn’t going to turn into a rout like yesterday’s initial gains did. Indeed, the bulls appear to be firmly in control for now. With Quarter 3 starting, investors appear to be very interested in the prospect of an end to the recession. And much of today’s economic data appears to support the idea that the decline is at least slowing. The other side to the economic data story, though, is that contraction is still taking place. Economic contraction may be slowing, but it is still taking place.

Especially encouraging to bulls was the information on manufacturing and home sales. Manufacturing is still declining, but the pace has slowed. There are hopes that perhaps, by the end of the year, that sector will start making gains again. U.S. pending home sales increased for the fourth straight month, adding to hopes for a stable housing market — in spite of continuing foreclosures. MarketWatch reports on pending home sales:

The pending home sales index rose 0.1% in May after an upwardly revised gain of 7.1% in April, the National Association of Realtors said. The index is 6.7% above May 2008.

“Strong activity by entry level buyers is helping to absorb inventory and allow some existing owners to make a trade,” said Lawrence Yun, NAR’s chief economist, in a statement.

He added that existing-home sales should trend up through the end of the year.

Investors are largely ignoring employment data today. ADP employment data came in worse than expected, but investors are focusing on the good as they attempt to start Quarter 3 off on a good note.