Daily Investment Interpretations

October 11, 2011

2011-10-11: (Tuesday Night): The equity markets went nowhere today, presumably waiting for the beginning of earnings season with Alcoa's kickoff report tonight: Nervous market meanders, And They're Off: Earnings Parade About to Roll Again.
The NASDAQ Composite gained 16.98 points (0.66%) to close at 2,583.03. The Dow retreated 16.88 points (-0.15%) to close at 11,416.30; the S&P 500 closed up 0.65 points (0.05%) to settle at 1,195.54. Oil inched up to 85.25; gold rose to 1,683. The VIX eased down 0.16 points to 32.86
    This rise in the market indices has been accompanied by lower and lower volume, suggesting that this rally was mostly about short covering (forcing traders who had shorted the markets a week ago to cover their short positions in case this rally proved to be a year-end rally).
    After hours, Alcoa-s earnings report disappointed the markets: Alcoa Kicks Off Earnings Season With a Dud, Alcoa misses a low target, triggering lower market futures tonight.
    State of the Markets articles include:
    Buying Some Time (Again)  In this article, David Manning suggests that the Eurozone leaders have nothing new to offer but are only buying time. But for some reason, traders have accepted these vague reassurances. 
    NFIB Small Business Optimism Picks Up Modestly in September  
    Morning Thoughts: All About Slovakia (Really?)  
    ECB's Trichet: The Crisis Has Become Systemic  
    Troika Says 2011 Greece Targets Beyond Reach  
    Slovakia Votes No on EFSF Expansion  

    Mark Hulbert suggests that this rally might be Wall Streetís early Halloween Party, marking the end of the "Sell in May and go away" period that normally ends around Halloween in time for a year-end rally.
    One upbeat news item: Greece may get aid tranche after all.  
    And downbeat item: John Nyaradi on investing for the nuclear winter.  

    Stock market futures are down  % again tonight.