Daily Investment Interpretations

August 12, 2011

2011-8-12: (Friday Night):  The markets registered further gains today: Stocks end on an up note, Quick Comment: The Bulls Are Due. The NASDAQ Composite gained 15.3 points (0.61% ) to end at  2,507.98. The Dow powered upward 125.71 points (1.13%) to close at 11,269.02; the S&P 500 leaped  6.17 points (0.53%) to settle at 1,178.81. Oil was little changed at $85.30; gold closed way down at at $1,749: Gold's win streak halted. The VIX fell 2.84 points to 36.36.   
    Mark Hulbert notes that investment advice among the investment newsletters he tracks have gone from too complacent to quite bearish, which, from a contrarian perspective, is quite bullish:  Mark Hulbert: Contrarian indicator at hand (video). But he notes in this interview that time scales have been unthinkably compressed: that what took a week or a nth to play out in the past may occur now within an hour or a day. He also notes that Hulbert: Corporate insiders are buying. This viewpoint is augmented by Insiders are buying, and they’re worth watching and by Insiders are not bailing on this market (video).   
     State Of The Markets views what's happening as the unfolding of a classic waterfall decline. They forecast a climb to, Perhaps, 1,250 on the S&P 500, followed by a further fall:Technical Talk: Sticking To The Script .Here's additional information posted at the Stat Of The Markets website: Eurozone Industrial Production In Decline, France GDP Falls to Unchanged in Q2; Below Estimates, What's This, Good Economic News in the UK?, Retail Sales in U.S. Up +0.5% in July, University of Michigan Sentiment Dives in August, Business Inventories Below Consensus in June, and Bove: If The U.S. Were A Company We Evaluated... “'[The country] owes $14.4 trillion [and] over the next five years that will get up to $20 trillion,' he said. 'We’re building a reserve currency around a country which is bankrupt and can’t pay its debt. How can you, in essence, be aggressive and say, ‘I know where the bottom is, or I know how this is going to adjust’?' he said. 
    “In agreement, noted investor, Jim Rogers, told CNBC Monday that the United States is not currently worthy of the AA-plus credit rating, let along the cherished AAA designation. 'They can roll it over and continue to play the charade, but the U.S. is bankrupt.'” 
    “Said Bove, '…I think the markets going lower so I’m not buying anything.'”

    Generally, this news sounds pretty bad, and corporate-insider-purchases and newsletter-pessimism notwithstanding, it doesn't suggest jumping into the markets with both feet..