Daily Investment Interpretations

August 9, 2011

2011-8-9: (Tuesday Night):  The markets rebounded today: Dow stages late recovery in best day since March 2009, Market Wrap: Stocks Finish Higher, Wild Ride The NASDAQ Composite reclaimed 124.83 points (5.29% ) to end at  2,482.52. The Dow regained 429.92 points (3.98%) to close at 11,239.77; the S&P 500 vaulted 53.07 points (4.74%) to settle at 1,172.53. Oil closed down at $82.14; gold closed at $1,747: The VIX backed off 12.94 to 35.06. 
    State Of The Markets asks Is This 2008 Again?: A Review of Waterfall Patterns. Richard Meiers predicts a 10% rise in the market indices... about 5% above tonight's close... followed by a further decline. The Underground Trader asks: Underground Trader: Is The Fed Out of Ammo? In it, he lists various moves the Fed could make, including the specific choice the Fed did make: "announcing a specific longer than expected date for an extended 'zero interest rate' policy". Other articles are: Technical Talk:Time For A Bounce, Quick Comment: Is That a Ray of Sunshine?, Fed Sees Economy Slowing But Offers No New Stimulus Plans, and White House Hunkering Down After Market Dive.         
    Although the Fed promised to keep interest rates low through 2013, there was an uncommon degree of disagreement among its members: Discord at the Fed: "Federal Reserve pledges to keep rates on hold "at least through mid-2013. That action brings an unusual three dissenting votes.". Fed's stuck like Congress
    Irwin Kellner observes that Fear of recession may help avoid it.  
    Law gives SEC scope to probe S&P insider trading, Moody’s, S&P lobbying spending on rise, , S&P's scarlet 'E' — as in, Enron, and Recalling Canada's own S&P debt downgrade. "The economy is slumping, and the word from the Fed on Tuesday is that the central bank is just as paralyzed as Congress is (First Take)."         
    Mark Hulbert states that    Insiders think now is the time to be buying.
    Michael Ashbaugh reports that U.S. markets traverse less-charted territory