Daily Investment Interpretations

January 4, 2011

2011-1-4 (Tuesday Night): The markets took a breather today, after yesterday's Great Leap Forward. The NASDAQ Composite jumped 38.65 points (1.46%) to 2,691.52. The Dow rose 93.24 points (0.81%) to  11,670.75, while the S&P 500 hopped 14.25 points (1.13%) to close at: 1,271.89. Oil closed at $91.40 a barrel ($100 oil called 'inevitable' in 2011), and Gold hit  $1,415. The VIX declined 0.14 to 17.61.  
     The indices dropped more than a percent but then partially recovered after the Fed minutes showed no unwelcome surprises.
    From half-empty to half-full  Irwin Kellner observes that businesses are now ready to "accentuate the positive, diminuate the negative". "Whatever you call it, a growing number of companies are beginning to see better times ahead — and are taking steps to ensure that they get their share of the pie. In doing so, these firms will make their opinions a self-fulfilling prophecy."
Evidently, execs figure that the time has come to add good people to their staff while they are still available. This will jump-start the heretofore-moribund economy, thus changing a vicious cycle to a virtuous cycle. Before too long, the rate of growth will break out of the 2.6% pace it has averaged over the first three quarters of last year, thereby turning the fledgling recovery into a full-blown, self-sustaining expansion. This will go a long way toward reducing Washington’s budget deficit — not to mention cutting unemployment as well."
    Holiday-season postmortem  Mark Hulbert notes that when the seven-day Santa Claus rally is as tepid as was this last one, the market tends to rise a little more during the rest of the year than it does when the Santa Claus rally is more robust. In other words, we have good news.
    For consumers, good and bad news in 2011  
    About-Facebook  This article, by David Weidner, discusses the Goldman Sachs investment in Facebook, and what it means for those of us who are outside this fairy circle.
    Banks look to foreclose on their mistakes  
    Rampant optimism no reason for pessimism  
    Michael Ashbaugh explains that the markets are starting the new year with a technical breakout: The 2011 breakout.
    Market futures are down about ¼ % tonight.