Daily Investment Interpretations

January 31, 2011

2012-1-31: (Tuesday Night): The markets ended the day mixed on negative domestic news: Home prices haven't hit lows yet: PNC's Hoffman, Chicago PMI Misses Mark, Lowest Level Since August, U.S. Data Disappoints, Bulls Rebound To Cut Losses and S&P, Dow wrap up best January in 21st century. The NASDAQ Composite rose 1.9 (0.07%) to 2,813.84. The Dow lost 20.81 points (-0.16% to 12,632.91; the S&P 500 gave up 0.61 points (-0.05%) to settle at 1,312.40. Oil inched up to 98.43: Oil falls on U.S. data, rising dollar; gold climbed to 1742: Gold ends higher, up 11% on month. The VIX rose 0.04 points to 19.44.
    One key point: the markets have once again rebounded from the S&P = 1305 level that would have marked a market reversal, However: And Now A Word From The Bear Camp: "The markets currently seem to be suffering from a bout of amnesia as players forget all problems and unpleasant economic data. This "no memory" market (which has been with us for some time now) once again appears to be focusing on only the good economic reports. Thus it ignores such items as: The surprising drop in German retail sales (-1.4% vs. est. +0.8% M/M). The record yield level touched yesterday by Portuguese 5-year notes. The data series high December Italian Unemployment Rate of 8.9%. The missed "deadline(s)" for the conclusion of Greek PSI negotiations. Etc. It also has almost no recollection of recent news items such as: Plunging housing data in China. Nearly 23% (almost ... Read More Ľ"
    Marketwatch says: 
    U.S. house prices slide in November   
    Consumer-confidence gauge falls in January  
    'Golden cross' is bullish, says Ashbaugh 
    From golden cross to doji 
    Farrell probes China commodities bubble 
    David Weidner writes that Davos is just an ego trip for the 1%
    Overbought market still has bullish potential  
    Dr. Irwin Kellner writes Itís the fiscal policy, stupid.
    Do toxic metals in brain cause Alzheimer's?  
    State of the Markets articles include:   
    Technical Talk: Bears Gain Possession of Ball  
    What Price Confidence?   "I wrote last week that I believed the Fed's intention to keep rates 'exceptionally low' for a surprisingly long time was aimed at building confidence in the economy. But at what price? ..."
    IEU Leaders Sign Historic Pact To Bolster Fiscal Unity, Prevent Future Debt Crises  
    Consumer Confidence Well Short of Expectations in January      
    Eurozone Banks May Tap LTRO for 1 Trillion Euros 
    Chinese May Encourage Pensions To Invest In Stocks   
    Morningstar Ups the Ante in the Mutual Fund Ratings Game  

    Market futures are neutral tonight.