Daily Investment Interpretations

August 9, 2010

2010-8-9:  The markets rose a bit today, battling with overhead resistance. The NASDAQ Composite added 17.22 points (0.75%) to finish at 2,305.69. The Dow gained 45.19 points (0.42%) to close  at 10,698.75, and the S&P 500 appreciated  6.15 points (0.55%) to end at 1,127.79. Oil closed at $81.45 a barrel, while Gold ratcheted up to $1,203 The VIX increased 0.4 to 22.14
    This first article, The promise of quantitative easing, written by Todd Harrison, puts forth the idea that the S&P is heading for, e. g., 860. Additional quantitative easing might drug the markets a little longer, but they'll soon tank. Also, he's concerned about how the Wall Street game is changing, along with new financial regulations. He mentions major players who are withdrawing from the financial markets until they stabilize.
    The second article, Consumers: Soon to feed through, talks about rising food prices at the same time that wages are falling.
    The third article, Beware the deflationary mindset, warns that all this talk about deflation is setting up deflationary expectations.
    The fourth article, Significant chance of recession next 2 years: SF Fed, is suggesting the probability of a renewed depression in 2012.
    Stock market futures are down a bit tonight.