Daily Investment Interpretations

November 10, 2011

2011-11-10: (Thursday Night): Stock market indices bounced back today, but they gained something like one-fourth today as much as they lost yesterday alone: Stocks rebound after ugly sell-off, Stocks Finish Higher Following Choppy Session. The NASDAQ Composite crept up  3.5 points (0.13%) to close at 2,625.15. The Dow gained  112.92 points (0.96%) to 11,893.79; the S&P 500 rose 10.6  points (0.86%) to settle at 1,229.10. Oil advanced to 97.61; gold slipped to 1,764: Gold and the Dot.coms: Comparing the Bubbles, Gold futures gain but fail to close above $1,800. The VIX dropped 3.35 points to 32.81.
    To me, today's action suggested a dead-cat bounce. It remains to be seen whether or not there's follow-through. As for prognostications, there's Monster breakout for Nasdaq 100, Economists cut odds of U.S. recession (video), and Italy changed everything., arguing that Italy's bond woes virtually eliminated the prospects of a year-end rally. As usual, Marketwatch is a Tower of Babble. 
    Italy sells T-bills as borrowing costs rise. Good idea. That way, Italy isn't locked into years of high interest payouts. And virtually all Italian government debt is held at a much lower interest rate than Italy paid yesterday.
   David  Weidner: There's a bigger issue than Italy. The bigger issue, says Mr. Weidner, was the irresponsible lending practices of European (and other) banks.
    EU warns of 'deep, prolonged recession', and EU: Greek economy faces bleak two years.
    Peter Brimelow asks Is it 1973 all over again?
    Bernanke says Fed's got latitude on inflation
    Jobless claims at seven-month low
    Import prices tumble.  
    Trade gap narrows
    Rumor of S&P Downgrade of France  
    S&P to France: Pardonnez-moi  
    Brett Arends tells you How to do business in Greece? You donít.  

    State of the Markets articles include:
    The View From 30,000 Feet: Italy and The State of the U.S. Economy    
    Bernanke: Fed Is Focused on Job Growth At Present Time  
    Greece Update: Papademos To Be Named New PM Today  
    Rumor of S&P Downgrade of France  
    Time For The Implosion?
    Weekly Jobless Claims Down 10,000; Below 400K 
    Bloomberg Consumer Comfort Index Perks Up  

    Market futures are positive tonight.