Daily Investment Interpretations

Thursday, May 17, 2012

2012-5-17: (Thursday Night): The markets sank yet again today: The slow-mo stock decline; Stocks end at 4-month lows. The NASDAQ Composite slid another 60.35 points (-2.10%) to end at 2,813.69. The Dow plunged another 161.00 points (-1.28%) to close at  12,442.49; the S&P 500 tumbled another 19.94 points (-1.51%) to settle at 1,304.86. Oil ended the day  at 92.75: Oil notches fifth losing session; gold logged off at 1574: Gold higher on relief rally after 10-month low. The VIX rose 2.22 to 24.49.  
    "A disappointing gauge of manufacturing in the Philadelphia region added to worries about Europe to keep stocks in the red again. J.P. Morgan lower on report losses may be closer to $3 billion."
    "Stocks get further knocked after a disappointing read on manufacturing adds to Europe fears."

    "Investors fled stocks and flocked toward the safety of U.S. Treasuries Thursday as worries about Greece's future in the eurozone continued to escalate. More"   
    The S&P 500, having broken a major resistance level at 1340, is now defenseless down to its next major resistance level at 1300. The sticking points are Europe (Greece and Spain) and suggestions that the U. S. economy may be faltering as Europe enters recession.
    I'm entirely in cash, and anticipating the expected extremely-oversold bounce.
     
    Marketwatch says: 
    Philly Fed factory index turns negative in May.
    Claims unchanged.
    Leading indicators dip in April
    Mortgage rates fall to record lows with 30-year at 3.79%
    U.S. 10-year yields hit lowest closing level ever  
    Are the bears due for a win?  
    H-P to lay off thousands  "Reports surface that Hewlett-Packard is planning to cut as many as 30,000 jobs."
    Lawrence McMillan: In focus: Oversold, but wounded.  
    Kevin Marder warns that Every bear market starts with a correction.  
    Darrell Delamaide notes that Deficit talk distracts from real issues  
    Michael Ashbaugh points out that the Nasdaq edges under 10-year support  
    Spain clears bond sale, borrowing costs rise  
    Spain's Bankia triggers stock rout in Europe.  
    Spain GDP contracts as austerity hits spending  
    Spain's Bankia: Depositors have nothing to fear  
    Moody's cuts ratings on 16 Spanish banks  
    More ECB unconventional easing may be needed- IMF  
    Banks might need to raise $566 billion: Fitch  
    Peter Brimelow asks Is oil spoiled?  
      
    State of the Markets articles include:   
    Looking Ahead to Friday's Market  
   
Why Greece Does and Doesn't Matter "Good morning. Stocks have been down ten of the last eleven sessions. According to Bespoke, the NYSE Advance/Decline line is now at one of the most oversold levels seen since 1990. The talking heads on T.V. told us yesterday that the NASDAQ is now officially in "correction" territory. The S&P has fallen 6.6% since April 2nd. And the global equity markets have reportedly lost $3 trillion in value since the beginning of May. All thanks to Greece - a country whose GDP is barely larger than that of Houston, Texas. If you are anything like me, I'm fairly confident that you are tired of hearing about almost anything related to ... Read More "         
    Philly Fed Index Surprises With Big Miss in May            
    Leading Economic Indicators Also Miss Expectations 
    Bloomberg Consumer Comfort Index Sags  
    Weekly Jobless Claims Hold Steady at Higher Levels    
    JPMorgan Trade Loss Now Exceeds $3 Billion (And Counting)  
    Spanish Bond Auction Sees Yields Continue to Rise      
    Spain Officially In Recession  
    Japanese GDP Above Expectations in Q1  
      
    Market futures are 0.2% higher tonight.