Daily Investment Interpretations

January 18, 2012

2012-1-18: (Wednesday Night): The markets reached another new intermediate-term high today: U.S. stocks rise with builder sentimentBulls Romp; S&P 500 Over 1300. The NASDAQ Composite added 41.63 (1.53%) to 2,769.71. The Dow gained 96.88 points (0.78% to 12,578.95; the S&P 500 jumped 14.37 points (1.11%) to settle at 1,308.94. Oil rose to 101.52: Morgan Stanley hikes oil forecast on geopolitics; gold rose $10 to 1662: Gold to five-week high. The VIX dropped 1.31 points to 20.89.
    The S&P 500 punched smartly through resistance at the 1,300 level. However, the markets are said to be "very overbought": Mark Hulbert counsels us about Avoiding bull-market fever.

    Marketwatch says:  
    Amazing buying opportunity? European financial stocks are hugely underpriced, along with a favorable exchange rate.
    Not your dad's momentum market
    Brett Arends tells about The euro-crisis horror show. Can it get any worse?
    Yes, says David Marsh: In Europe, everything gets worse He's referring to S&P's downgrade of the European EFSF Fund, which, he says, is the match that has lit the fire under the Euro's funeral pyre.
    Matthew Lynn writes about The slow death of sovereign debt market.  
    High price of gold is child slave labor  Some of our gold comes from countries where slavery and child labor is used to extract it.
    Michael Ashbaugh notes that S&P, Nasdaq challenge the October peak.  
    Italy's Monti urges better euro-zone governance: "Italian leader says 'assessment of the markets is related to good finances, but also to growth.'"
    State of the Markets articles include: 
    Technical Talk: Resistance Being Tested   
    Europe Update: IMF To Boost Lending By $500B, Greece Negotiates, Fitch Talks Downgrades
    NAHB Homebuilder Confidence Index Rises for Fourth Straight Month   
    NAAIM Index Show Active Managers Neutral But Increasing Exposure
    PPI in U.S. Declines In December; Core Rate Hotter      
Portugal Completes T-Bill Auction, Rates Steady to Lower
    Goldman Sachs Beats EPS Estimates; Revenues Light
    Citi's Earnings Disappoint on Both Top and Bottom Lines 
    Germany Projects Economic Slowdown in 2012     

    Market futures are neutral tonight.