Daily Investment Interpretations
December 9, 2011
(Friday Night): The markets
reversed course and closed up today about as much as they lost yesterday on news
that the EU leadership has reached agreement on changes in the EU treaty that
give the major European states some control over the budgets of the smaller
states: Dow rises back to black,
Stocks rally on Europe's new deal.
The NASDAQ Composite ascended
to close at 2,646.85. The Dow advanced 186.66
the S&P 500 jumped 20.84 points
to settle at 1,259.19. Oil rose to 99.84: gold inched up to 1,715:
The VIX crept upward 4.21
Now it's up to the ECB to launch into massive buying of Eurobonds, something its leader said yesterday that he wasn't authorized to do: EU deal leaves ECB nowhere to hide, Europe must show euro commitment- U.S. official.
The markets are still trading in a range, and right now, are at the top of their range (1,260 on the S&P 500). Until the S&P breaks above resistance at 1,260, it's more apt to go down than up. Intermediate-term, with Europe slipping into recession, and with the U. S. in a fragile state, the outlook doesn't appear to me to be very rosy.
Tune in on Monday for the next exciting episode of "The Life and Times of the Eurozone".
Howard Gold asks, Why are no bankers in jail this time around?.
Brett Arends explains Why Merkel-Sarkozy pact is doomed to fail, and Myra Saefong observes that OPEC conflicts give way to oil balance.
State of the Markets articles include:
Would You Lend Them The Money?
EU Leaders Agree To Fiscal Compact; Next Step Left To ECB
UK Vetoes Proposed EU Treaty Changes
Germany's Bundesbank Cuts GDP Forecasts (Again)