Daily Investment Interpretations

November 17, 2010

2010-11-17 (Wednesday Night):  The markets closed out the day little changed: Irish go cap in forced hand. The NASDAQ Composite lifted 6.17 points (0.25%) to end the day  at 2,476.01  The Dow declined 15.62 points (-0.14%) to close at 11,007.88, and the S&P 500 wafted up 0.25 points (-1.62%) to end at 1,178.59. Oil dropped to $80.46 a barrel (Oil tumbles to four-week low), and Gold ended at $1,337. The VIX dropped 0.82 to 21.76. 
    I did a lot of selling today in emerging markets funds, along with my shares of the S&P 500 ultra fund, SDO. (My "sell" signals come from a reliable source.) It remains to be seen what happens from here. My investment advisory service still sees this being a short-term correction in the U. S. markets, but my concern is primarily about being overextended in emerging markets. 
    Market futures are up about % tonight. 
    Brett Arends explains here why he thinks fund managers' bullishness is a "sell" signal: Sussing out sell signal by bulls. Exceeding bullishness combined with very low cash levels suggests trouble immediately ahead.
   
This article also makes this point: Bulls in the global funds.
   
Memo to Obama: Can’t beat ’em? Join ’em!   Darrell Delamaide
   
3 stocks with dependable profits  
    Putnam CEO: Upside ahead (audio)  
    I was shocked (though pleased) today to find that a model portfolio that I assembled at the market peak in 2007 is up 35% by now. I was pleased because it means that the selection strategy was a good one. It offers one way to move up from here.
      
2010-11-17 (Wednesday Morning):  Sell! I've taken advantage of this morning's "dead-cat bounce" to sell my investment-advisory-service ETF position, along with some of my emerging-markets calls. (I may sell more of the emerging-markets calls before this day is done.)