Daily Investment Interpretations

December 21, 2010

2010-12-21 (Tuesday Night): The markets advanced strongly today, with all the indices now at two-year highs .The NASDAQ Composite climbed 18.05 points (0.68%) to 2,667.61. The Dow rose 55.03 points (0.48%) to  11,533.16, while the S&P 500 improved 7.52 points (0.6%) to close at: 1,254.60. Oil closed up at  $89.59 a barrel on favorable economic news, and Gold ended up a trifle at $1,378. The VIX rose 0.08 to 16.49.  
    Although the markets are percolating along merrily, my investment advisory service warns that a market turndown is waiting to happen. The markets are overextended.
   Michael Ashbaugh's Tuesday market analysis is presented here: A closer look at the December breakout  
    Copper getting cornered?  Some trader has about half the world's copper cornered.
    Positives versus negatives in 2011  Irwin Kellner gives his projections for 2011. Taken overall, he concludes, "Put these all together and you get an economy that will continue to expand in the New Year. The rate of growth should be better than in 2010 — but not by much."
    Stocks versus bonds, as rates rise  Mark Hulbert concludes that rising interest rates should "in and of themselves" have little impact on the stock markets.
    Paul Farrell says, Use ‘Noah’s Ark’ survival kit for 2011.