Daily Investment Interpretations

January 17, 2012

2012-1-16: (Tuesday Night): The markets reached a new intermediate-term high today: U.S. stocks rise with Europe’s currencyRally Stalls In Front of Earnings, Euro Events. The NASDAQ Composite added 17.14 (0.64%) to 2,728.08. The Dow gaied 60.01 points (0.48% to 12,482.07; the S&P 500 skidded 4.58 points (0.36%) to settle at 1,293.67. Oil rose to 100.78: Oil back above $100 a barrel; gold fell $21 to 1652: Gold rallies to best level in a month. The VIX rose 1.29 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.
    Marketwatch says:  
    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.