Daily Investment Interpretations

October 17, 2011

2011-10-17: (Monday Night): The equity markets sharply lower today:  Stocks tumble 2% on Europe jitters, Merkel Says Don't Get Hopes Up On Quick Solution to Debt CrisisThe NASDAQ Composite slid  52.93 points (-1.98%) to close at 2,614.92. The Dow dropped 247.49 points (-2.13%) to 11,397.00; the S&P 500 backed up 23.72 points (-1.94%) to settle at 1,200.86. Oil moved up to 87.37; gold rose to 1,682. The VIX popped 5.15 points to 33.39.
    As I said on Friday, if the markets advance today on high volume, then it's on to a year-end rally. If not, it's back to the trading range.
 
    And the answer is: it's back to the trading range.
    Earlier today, State of the Markets published its Technical Talk: Does Volume Matter Anymore? Apparently, the answer is "yes", although it will take further downside action to cement that in place. German leaders today dashed hopes for a quick fix to the Eurozone debt crisis: Confidence Erodes as Leaders Downplay Expectations
    Some additional State of the Markets articles include:
    G20 Finance Ministers Back Capital Increases For Big Banks  
    Beleaguered Banks: Book Values, DVA's and The Potted Plant Strategy  
    EU May Ban Naked CDS Purchases on Sovereign Debt  
    Citi's Earnings Report Includes 'Credit Valuation Adjustment'  
    Empire Manufacturing Index Well Below Expectations  
    Industrial Production Report Largely In Line  
    IBM Earnings Beat Estimates but Light on Revenues  
    Earning Scorecard: After the Bell  
    
    Marketwatch doesn't have many articles I'm including tonight:
    Large U.S. firms outpace tepid U.S. growth    
    Are bond yields telling us something about future stock prices? 

    Market futures are down slightly tonight, but the S&P 500 closed today only 20 points below the top of its range. It wouldn't take a lot to move it on up out of its range.