Daily Investment Interpretations

August 16, 2011

2011-8-16: (Tuesday Night):  Today, stocks retreated: Stocks pare early losses but still end win streak, Bears come out of Europe, EU Conference, Policy Weighs on Stocks, and Signs of the 'death cross'. The NASDAQ Composite lost 31.75 points (-1.24% ) to end at  2,523.45. The Dow powered upward 76.97 points (-0.67%) to close at 11,405.93; the S&P 500 sagged  11.73 points (-0.97%) to settle at 1,192.76. Oil slipped to $87.15: Oil falls as global demand prospects weaken; gold climbed to $1,790: Gold rises to record $1,785 an ounce. The VIX rose 0.98 points to 32.85
    State of the Markets' David Moenning says, "Everything's Fine Now, Right?" Market news and market commentators have suddenly become quite upbeat... exactly as you'd expect in a waterfall decline. In the way of good news, there's: Fund managers brace for slowdown, no double-dip, Fitch Affirms U.S. Rating as 'AAA' with Stable Outlook, Industrial output jumps in July, What's This, Good Economic News? (Industrial Production and Capacity Utilization), Quick Comment: Time To Buy Back In?, and Inflationary pressures low. Mark Hulbert notes that Streaks signal a bottom. "Streaks of volatility aren't as rare as they seem, according to MarketWatch's Mark Hulbert, who says they are often part of a "'bottoming process.'"    In the bad news department, there's: Germany's GDP growth nearly grinds to a haltGermany will lead the global downturn, Eurozone GDP Also Below Consensus in Q2, Recession risk up, says Atlanta Fed's Lockhart, Import Prices Up in July, Export Prices Down, and Housing starts slip 1.5% in July, U.S. data show. . 
    Michael Ashbaugh explains that "The major U.S. benchmarks have rallied sharply from the August low, but technical damage has been inflicted.": Technical repairs needed   
    This article by Dr. Irwin Kellner points out that even an economics ignoramus ought to be able to understand that if the government cuts its budget during a recession, less money is going to be pumped into the economy, with a downward ripple effect on the economy: Kellner: Some economic lessons from history. What he doesn't add is that a lowered GDP lowers GDP and government tax receipts, driving up the deficit that much further.    
    In the "general news: category: French and German Leaders Propose Common Governance For Eurozone, and Paulson's Big Bets Are Big Losers in 2011. "So far in 2011, investor loyalty and patience is being tested, specifically when it comes to newly-minted billionaire hedge fund manager John Paulson. Economic hardships and stress on the banking sector have led the president and founder of Paulson & Co. to endure substantial loses; his flagship $38 billion hedge fund is down 21.5% already this year according to figures released last Friday and will likely continue on a downward path with each drop in the U.S. stock market. In ... Read More "
    We aren't the only ones who have found this stock market environment to be challenging!
    Market futures are down a bit tonight.