Daily Investment Interpretations

November 22, 2011

2011-11-22: (Tuesday Night): The markets dropped again today: Stocks edge down on Europe debt fears, Bulls Fail to Capitalize on IMF News. The NASDAQ Composite descended 1.86 points (-0.07%) to close at 2,521.28. The Dow sidled back 53.59 points (-0.46%) to 11,493.72; the S&P 500 eased down 4.94 points (-0.41%) to settle at 1,188.04. Oil gained slightly further to 97.39; gold advanced to 1,708. The VIX fell back 0.94 points to 31.97.
    Among the headlines that moved today's markets are:
    Michael Ashbaugh's weekly technical analysis is entitled Market bears back on offense.
    U.S. may lose its second AAA rating within months
    Third-quarter growth cut     
    Fed talks inflation targets
    'Problem banks' ranks thin  
    Signs of life in the U.S. economy: Kellner  
    Hooray for supercommittee failure: Delamaide  "Winners in this case are the American people and the democratic process, because the attempt of a small minority with unlimited funds to foist on the nation an anti-tax agenda that is inimical to the interests of the middle class was foiled.
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    "The urgency to cut the deficit was an artificial crisis fomented for ideological reasons that have nothing to do with fiscal responsibility and everything to do with reducing taxes on the wealthy. Deficits arenít the problem, jobs are, and what we needed was a supercommittee on stimulating job creation."
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    "Another recent failure ó that of a House Republican leadership increasingly out of touch both with reality and the electorate ó to get a balanced-budget amendment passed should also be celebrated. Even though it was just more political theater from that same ideological minority, every triumph of reason in this disreputable Congress should be welcomed."
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    "Why these failures should be celebrated is clear from the euroís death spiral. Fiscal hardliners in Europe have the upper hand and are undoing 50 years of European integration by blindly following this benighted ideology."
    "Greece, Italy, Spain and Ireland face a much tougher constraint than a balanced-budget amendment through being shackled to a common currency thatís designed to favor Germany. The insistence by Berlin that these countries impose draconian fiscal austerity to pay for Germanyís prosperity is driving the Continent into recession ó including, of course, Germany."

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    "Itís a sad state of affairs. Europe and the U.S. are now looking at a new recession, continued high unemployment, and increasing political turmoil as restive voters make their frustration known."
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    Aden sisters: Markets may return to 2008  
    Supercommittee winners  
    Payroll-tax battle is now joined  
    Brent Arends asks Which countries arenít bust?  
    IMF to boost crisis flexibility  
    China factories slow down  
    And Mark Hulbert advises us that the Market [is] still working off excess optimism.  

      
    State of the Markets' articles include:
    Maybe The Sky Is Falling  
    First Revision: U.S. GDP Grew by +2.0% in Q3; Below Expectations  
    Yields Continue to Soar in Spain; France Debt Not Trading Like Triple-A 
    Germany: No New Bazooka Coming From ECB  
    EU Sends Warning Letters To Five More Countries   
    IMF Creates New Line of Credit For European Countries
    FOMC Update: Summary of Minutes from November 1-2 Meeting  

    Market futures are down ~1 % tonight.