Daily Investment Interpretations

November 14, 2011

2011-11-14: (Monday Night): Stock market indices fell back today as bad news returned to the Eurozone: Stocks sink on Italy, Spain, Stocks Finish Lower On Very Light Volume, S&P 500 loses 0.9% to 1,252. The NASDAQ Composite marched back down 21.53 points (-0.8%) to close at 2,657.22. The Dow added 74.7 points (-0.61%) to 12,078.98; the S&P 500 increased 12.07  points (-0.96%) to settle at 1,251.78. Oil adjusted downward to 98.18: Oil ends down as euro woes hit sentiment; gold fell to 1,782. The VIX rose 1.09 points to 31.13.
      
    Peter Brimelow asks: Is gold headed to $2,200?  
    Today was a "bad-news" day: Europe losses build after Merkel speaks, Italy stocks may not enjoy ‘Monti bounce’, and Pain returns to Spain.
   
Germany's Merkel: Closer union to fix crisis   
    David marsh writes: Marsh: Technocrats aren't always the answer, referring to Italy's New prime minister, Mario Monti.   
   
Tough competition for jobs  There are four applicants for every job, up from 1.5, up from 1.5 per job before the recession hit. 
    Jordan to supercommittee: No tax increases  
    Coburn targets tax breaks for 'rich and famous'  
    Chris Hobart: We will see a Santa Claus rally  
    Supercommittee can at least save $1.2 trillion: Clyburn  
    Buffett pays dearly for IBM  
    The graph below shows the ratio of the wealth of the wealthiest 0.1% of the population compared to the rest of us over the interval from 1913 to 2008. Paul Krugman has shown an equivalent chart for the UK in his article: Permanent Link to The 1% Across Space And Time.



   
I found it interesting that the concentration of wealth was as high in 1929 as it is now, and that it was even higher in 1916 (at the end of the Gilded Age?)
   
The bulls must break resistance  "Stock market bulls need to punch through current resistance levels and reach escape velocity or else risk a "terminal event", writes John Nyaradi."

 
   State of the Markets' David Moenning has followed up on his very good article, Why Isn't This Working Anymore? with More On Moving Averages
    Other State of the Markets articles include: Technical Talk: Stocks Lower; Choppy Action.  
    PIMCO: The New Normal Will Stick Around and Europe is Solvable  
    Italy Update: Berlusconi Resigns Following Approval of Austerity Measures
    Fed To Begin New Round of Bank Stress Tests
    Italy Completes Bond Auction; Yields at Euro-era High 
    Eurozone Industrial Production Disappoints for September
    Italy Update: Monti Takes Over New Government

    Market futures are slightly lower tonight.