Daily Investment Interpretations

December 2, 2010

2010-12-2 (Thursday Night): The markets surged today about half as much as they did yesterday: Bulls' rally is twice as niceThe NASDAQ Composite added 29.92 points (1.17%) to 2,579.35. The Dow advanced 106.63 points (0.95%) to close at 11,362.41, and the S&P 500 rose 15.46 points (2.16%) to end at 1,221.53. Oil increased to $87.96 a barrel: Crude rallies to $88 a barrel, and Gold climbed to $1,385. The VIX fell 1.85 to 19.15.
    I'm thinking that with the bond market turning down (because of rising interest rates), money is spilling over from bonds to stocks. It was the Fed's intention to boost stock markets at the end of the year.... but: Fed could turn off tap. If this is what's happening, there could be quite a run  
    TopStock Portfolios has this to say about the Fed: Here's Hoping QE2 Works Right Here, Right Now, Because Next Year.... The gist of this article is that two monetary hawks, Charles Plosser and Irving Fisher, will become voting members of the Federal Open market Committee next year, replacing two doves. (It's worth noting that monetary hawk Claude Trichet, the president of the European Central Bank, has just become a dove, announcing the ECB will be  
"doing whatever it takes" and resorting, if necessary to "unconventional measures" to get the Eurozone back on track: Unconventional Measures-.
    TopStock Portfolios is also concluding (along with last night's Nick Godt (
It could very well be your grandmotherís rally) that we're into the year-end "Santa Claus" rally: Technical Talk: Year-End Rally Underway.
    More jobs, but not enough  "Economists expect some improvement in November payrolls, but they'll be tepid and the unemployment rate is expected to stay above 9%".