Daily Investment Interpretations

June 18, 2010

2010-6-18:  The markets closed up slightly again today: Another up week for stocks. Today was options expiration day, so the significance of today's action is somewhat dubious. The NASDAQ Composite advanced 2.64 points (0.11%) to close at 2,309.80, the Dow gained 16.47 points (0.16%) to close at 10,450.64, and the S&P 500 added 1.47 points (0.13%) to end at 1,117.51. Oil ended at $77.35 a barrel, while Gold ended the day at a new high of $1,258. The VIX dropped 1.10 to 23.95.
   
Fed in a tight spot if growth slows. This article observes that the Fed has fired about all the bullets it has. The recovery is fragile and vulnerable to shocks.

    Chuck Jaffe writes: Bank reform loopholes are roadmap to trouble. Mr. Jaffe echoes Paul Farrell's warnings about another bubble and bank catastrophe ahead. The Wall Street/ banking lobbies are pushing hard and probably successfully to undercut banking reforms.
    Peter Brimelow writes Permabear is bearish The permabear is Robert Prechter of Elliott Wave fame. He suggests a trap in 2012, followed by a decline of greater than 90% by 2016.