Daily Investment Interpretations

September 20, 2011

2011-9-20: (Tuesday Night): The market indices have wasted up and down today, ending essentially flat: Stocks cling to gains, Stocks weak; Fed to meet.  The NASDAQ Composite retreated 22.59 points (-0.86%) to close at 2,590.24. The Dow added 7.85 points (0.07%) to close at 11,408.66; the S&P 500 fell 2 points (-0.17%) to settle at 1,202.09. Oil inched up to $86.39: Oil pushes toward $89 on Greek hopes; gold reclaimed 1,807: Gold settles higher, reclaiming $1,800 level. The VIX gained 0.13 points to 32.86
    Michael Ashbaugh's weekly technical analysis concludes: S&P, Nasdaq top major resistance: Ashbaugh.
    In other news: 
    IMF economist: ECB (European  Central Bank) may want to cut rates
    David Weidmer advises us to: Short the euro!.  
    Paul Farrell says: Dow 20,250 by 2020, but first a big crash.  
    Irwin Kellner asks: Are we heading into another recession? (Dr. Kellner concludes that we probably are.) 
    Mark Hulbert offers: Fed Model more bullish than in decades, but Mark is very skeptical of its value. 

    State of the Markets articles tonight include:
    Technical Talk: The Test Is On
    German ZEW Confidence Index Sinks But Above Expectations  
    Spanish Bill Auction Sees Rates Continue to Rise
    Bank of China Halts FX Swaps with European Banks  
    Greece Denies Report of EU Referendum  
    Housing Starts Down in August; Permits Rise  
    IMF Cuts Growth Forecasts; Says Risks Are Rising  The IMF has cut its growth esticates for the U. S. for 2011 to 1.5%, and for 2012, to 1.2%. The IMF also warns tha the U. S. could fall into recession in 2012 if  
    Fitch Reaffirms Germany's Rating at 'AAA'  
    Sentiment Weakens on Greece Disappointment Ahead of Fed  
    Greece Update: The Review Will Continue  
    Gartman Doesn't Mince Words on Greece or Operation Twist  "Operation Twist" is what the Fed is expected to unveil tomorrow, and noted commodities trader Gartman says it "sends an air of desperation". Republicans warn Fed not to ease again.  He says that sooner or later, Greece will default because it always has in the past. "Asked if the anticipated default will be orderly enough to stave off a problem for our financial markets or if we should instead expect a disorderly default, Gartman didnít mince words. 'Will it be disorderly? You betcha it will.'

     Stock market futures are up modestly tonight.