Daily Investment Interpretations

January 27, 2011

2012-1-27: (Friday Night): The markets have been quite divergent today : Dow breaks 3-week winning streak;  . The NASDAQ Composite regained 11.27 (0.4%) to 2,816.55. The Dow lost 74.17 points (-0.58% to 12,660.45; the S&P 500 gave back 2.1 points (-0.16%) to settle at 1,316.33. Oil inched up to 99.83: Oil ends 0.1% lower; gasoline at best since August; gold catapulted to 1710: Gold up on safe-haven buying. The VIX fell 0.04 points to 18.53.
    The markets have made another expected pullback on less-favorable news. Today's less-favorable news was that 4th-quarterGDP came in at 2.8% instead of the expected 3.1%, and Ford's results were disappointing;
Ford Profits Miss Expectations, Stock Takes a Dive.
    Marketwatch says: 
    Now is the time to panic  Cody Willard notes that nothing about the Eurozone has changed from where it was two months ago. We were panicked then; we're not now. From a contrarian point of view, now is the time to panic ("Be fearful when others are greedy, and greedy when others are fearful.")
    Fitch downgrades Italy, Spain and Belgium  
    Economic recovery is still threatened  
    Lackluster GDP growth 
    Gold ETF looks like a sell  "A number of internal indicators which flashed a "buy" signal a month ago now appear to be pointing in the opposite direction."  
    Traders are selling crude to buy gasoline 
    White House extends help on foreclosures
    CEO Cook 'outraged' over supplier-labor issues  
    Financial stocks recover on Obama foreclosure plan
    Hopes rise for Greek deal 
    Geithner to Europe: Build a bigger firewall  
    German official begs to differ with Geithner  
    Brett Arends writes: Will 2012 be the year of the contrarian? "Conventional wisdom is there to be overturned. When everyone is betting one way, the shrewd move is often to look for opportunities to go the other way. Everyone still hates the euro, European equities, and Japanese equities. They love U.S. stocks. They hate bonds, and like equities. Hardly any investors own any gold. Make of it what you will."
    State of the Markets articles include:   
    Technical Talk: Pullback Proving A Mixed Bag  
    U.S. GDP Grew By +2.8% in Q4, Below Analysts Expectations   
    Report: Portugal Next On Debt Restructuring List  
    Fitch Lowers Ratings on 5 European Countries  
    University of Michigan Sentiment Above Expectations  
    Let's Get Sentimental 
    Greece Leaving Eurozone Still An Option