Daily Investment Interpretations

September 27, 2010

2010-9-27 (Monday Night):  The markets fell about % today. The NASDAQ Composite slipped 11.45 points (-0.48%) to 2,369.77 The Dow lost 48.22 points (-0.44%) to close  at 10,812.04, and the S&P 500 dropped 6.51 points (-0.57%) to end at 1,142.16. Oil slid to $76.50 a barrel, while Gold closed at $1,298. The VIX rose 0.83 to 22.54
    Instead of loading up on ETFs, I sold the modest position I had in SSO for a token profit of $175 after receiving a "sell" signal from my investment advisory newsletter. (My investment advisory newsletter decided to lock in its gains in the face of neutral-to-slightly-negative readings from its market forecast indicators. I followed suit because I had bought SSO last week at a much higher price than did my advisory service. I had gotten out of sync with my advisory service.) My advisory service pointed out that we're still in a news-driven environment, and there's no telling which way the news will go from here.
    Have a half decade? 'Buy and Hold' is coming back  
    Treasury sells 2-yr debt at lowest yield on record, (0.44%), with high demand. At the same time, gold continues to hit new highs: Central banks sell least gold since 1999. This is indicative, I should think, of renewed caution on the part of insiders over where the economy is going. Once again, the stock markets and the bond markets are sending conflicting signals.
    Fed weighing smaller bond buys: report  The Fed may go slower but longer with its purchases of Treasury bonds.
    A double dip may be ahead: Kaufman  This headline is, maybe, a little misleading. Henry Kaufman  estimates that there is "at least [a] one out of three [chance] there may be another dip within a couple of years". But there's other useful information in this article. One tidbit that's worth the price of admission is the fact that the Fed is retracting its forecast of 3%-to-3 % GDP growth for this year that Ben Bernanke reiterated a mere month ago (on August 27, 2010).

7 (Monday Morning)
: Something happened between night and morning to cool the markets. In any case, with the markets down slightly, there's no need for a buying stampede.
    David Marsh notes that the European bailout fund remains unfunded.