Daily Investment Interpretations
January 17, 2012
(Tuesday Night): The
markets reached a new intermediate-term high today: U.S. stocks rise with Europe’s currency,
Rally Stalls In Front of Earnings, Euro Events. The NASDAQ Composite added
to 2,728.08. The Dow gaied 60.01
the S&P 500 skidded 4.58 points
to settle at 1,293.67. Oil rose to 100.78: Oil back above $100 a barrel; gold fell
1652: Gold rallies to best level in a month. The VIX
points to 22.20.
The markets began the day by opening up about ¾ % on news that the latest European bond auctions had gone well Spain's borrowing costs fall, and that the Empire State Manufacturing Index had risen substantially more than forecast: N.Y.-area factories heat up. But around 2:25 EST, the markets suddenly took a dive in response ttto a bad report from Citigroup: U.S. stocks close higher but banks limit gains.
Fitch sees Greek default.
China growth cools (but only slightly).
Is this a new bull? The answer is "yes" if you focus on intraday levels but "no" if you concentrate on closing values.
Nyaradi? Are we in a bull or bear market? John Nyaradi concludes that we're in a new bull market unless markets fail at resistance or Europe implodes.
Bad is good Kevin Marder notes that institutions still haven't jumped into this marketplace although there are some subterranean stirrings. He also notes that a reduction in the VIX suggests a quieter marketplace going forward... a prerequisite to a major market trend.
Michael Ashbaugh says that S&P, Dow rattle cage on five-month highs. The major indices are hitting major resistance levels.
In Europe, everything gets worse
Irwin Kellner has written Till debt do us apart, In this article, he argues that the current concern over high federal deficits is misplaced. Austerity during a turndown leads to more austerity, not to prosperity, and the idea that the U. S. needs to appease "bond vigilantes" is just plain wrong. Interest rates on U. S. Treasuries are at record lows.
State of the Markets articles include:
Technical Talk: Will 'The Troops' Follow Their Leaders?
A Different Kind of Decoupling
Empire Manufacturing Index Rises For Third Straight Month
Wells Fargo Reports Better Than Expected Earnings
European Bill Auctions Deemed Successful in Spain, Greece, and for EFSF
Is The Game Finally Changing?
Citi's Earnings Disappoint on Both Top and Bottom Lines
German ZEW Confidence Index Beats Expectations
Asian Stocks Soar on Chinese Data, Hope For Stimulus
Greece's Papademos: Default and Abandoning Euro Not Options
Market Mover: ESM (European bailout fund) Rumors Boost European Markets
France's Sovereign Rating Still Being Reviewed By Moody's
Market futures are slightly positive tonight.