Daily Investment Interpretations
December 8, 2011
(Thursday Night): The markets
plunged today: Dow drops below 12,000,
Stocks Crushed; All Eyes on EU Summit.
The NASDAQ Composite descended
52.83 points (-0.01%)
to close at 2,596.38. The Dow advanced 198.67
the S&P 500 tumbled 26.66 points
to settle at 1,234.35. Oil retreated to 98.03: gold moved
down to 1,712: Hey, what happened to
The VIX crept upward 1.92
Today, it was the European Central Bank's turn to sucker-punch the markets. Mario Draghi, the ECB Presidentm announced to the media that the ECB's charter prohibits it from rescuing European states. (Its charter is limited to fighting inflation, not to save the Euro.) Of course, if the Euro fails, there will no longer be a need for a central European Bank, since there will no longer be a common currency. To be fair, Mario Graghi may not have that much personal influence over go-out-on-a-limb decisions such as he's being asked to make. There's probably a Board of Governors who have a say in (or may even vote upon) the actions taken by the ECB.
In two pieces of good news:
U.S. jobless claims fall sharply to 381,000
Household debt shrinks for 13th straight quarter
Buy euro rumor, sell euro news This latest almost-10% uplift in stock prices is suggesting a classic case of "buy on the rumor, sell on the news".
Mark Hulbert warns that there is an excess of positive sentiment that will derail further stock rises.
A chart that undermines U.S. spendthrift image
Congress insider-trading-limit vote delayed
Europe finds its banks short €114.7 billion
Euro-zone economy may contract in 2012- ECB
European 'fiscal compact' in the works?
Draghi erases Trichet's ECB errors
State of the Markets articles include:
Techncial Talk: Bulls Standing Aside; Support Being Tested
ECB's Draghi Announces Unorthodox Measures But Backs Away From 'The Bazooka'
ECB Cuts Benchmark Interest Rates By 0.25% For Second Time
Bank of England Leaves Rates Unchanged
Risk-On/ Risk Off Trade
Japan Machinery Orders Dive Again in October
Weekly Jobless Claims Come In Well Below Expectations
Bloomberg Consumer Comfort Index Shows No Improvement
Market futures are flat tonight after this headline: Europe summit fails to reach full agreement