Daily Investment Interpretations

November 30, 2011

2011-11-30: (Wednesday Night): The markets leaped today: Dow is Santa-rally central, U.S. stocks, boosted by Fed, rally like itís 2009Dow closes with largest gain since March 2009, and China, Central Banks, Jobs Send Markets Soaring. The NASDAQ Composite soared 104.83 points (4.17%) to close at 2,620.34. The Dow exploded 490.05 points (4.24%%) to 12,045.68; the S&P 500 pole-vaulted 51.77 points (4.33%) to settle at 1,246.96. Oil jumped to 100.57: ; gold rose to 1,751. The VIX fell 2.84 points to 27.80.
    Today's action was based upon (1) China's reduction in its  bank-reserve requirements, and (2) the news that central banks (including the U. S. Federal Reserve which, alone in all the world, has the power to print dollars). have locked arms and are pledging to rescue the Eurozone: Fed, peers slash dollar borrowing costs, EU Officials Scramble To Launch EFSF and Save Eurozone, and China Takes First Step Toward Easing Monetary Policy
    In further commentary about today's action: The 'coordinated' central-bank action that wasn't
, and Central Bankers Coordinate Efforts To Boost Global Liquidity.
    Among the articles questioning whether today's announcements herald the resuscitation of the Eurozone are Matthew Brady's IMF rescue of Italy will spark global uprising, and David Moenning's To Be Or Not To Be? One highly important take-home message is that the bulk of the money in the stock market is now invested by headline-driven supercomputers which drive the markets to their next stages in a minute or two rather than a day or two.
    Were the last two days the Santa Claus rally?
    Mark Hulbert writes: Market rally clears technical hurdles. (But note that computers are oblivious to technical hurdles. Note also that Michael Ashbaugh and Kevin Marder told us yesterday that major technical damage has been done to the averages, and that the intermediate trend is still down. Tonight, we're up 7% above yesterday morning's opening.)  
    Mark Hulbert also says, Gold likely to be higher at yearís end.
    And the Fed says, Economy taking baby steps forward: Beige Book.
    Euro-zone inflation rate steady, above target.  
    Britain's turn for a broad strike.
    Can Germany save Christmas?  
    State of the Markets articles include:   
    Technical Talk- Higher Low - Check. Next Up...  
    ADP Employment Report Shows Private Sector Job Growth Strong in November     
    Challenger Planned Layoffs Down 13% From Year Ago Levels  
    China Takes First Step Toward Easing Monetary Policy   
    U.S. Productivity and Unit Labor Costs Below Expectations in 3rd Qtr
    Investor's Intelligence Data Shows Bulls Holding Steady           
    Chicago PMI Comes In With Best Reading Since April  
    Pending Home Sales Present "Hopeful Sign" For Housing  
    Market futures are neutral tonight (not that that is very predictive anymore concerning tomorrow morning's opening numbers).