Daily Investment Interpretations

Friday, May 18, 2012

2012-5-18: (Friday Night): Down we go, with the the S&P 500 breaking through iys support level of 1300 to close at 1295: Longest weekly down streak of 2012 for Dow, S&P; Nasdaq benchmarks slide into technical correction; Stocks: Worst week of the year. The NASDAQ Composite slid another 34.90 points (-1.24%) to end at 2,778.79. The Dow dropped another 78.00 points (-0.63%) to close at  12,335.00; the S&P 500 tumbled another 10.50 points (-0.81%) to settle at 1,295.22. Oil ended the day  at 91.16: Oil below $92 a barrel; gold logged off at 1590: Gold futures bounce higher as dollar weakens. The VIX rose 0.61 to 25.10.  
    "Crude-oil futures end week roughly 5% lower on concerns about global growth and oil demand."
    "Dow and S&P set to suffer losses for a third straight week, which would be their longest weekly losing streak so far this year."

    "Stocks closed out an ugly week. Despite initial euphoria surrounding Facebook's public debut, the social network's shares barely popped above its offering price and failed to inspire investors to buy into the broader market. More."  
    I'm happy I'm in cash, and I'm still anticipating the expected extremely-oversold bounce.
    Marketwatch says: 
    Michael Gayad says Forget Facebook, stocks are at risk.
    Mark Hulbert explains What Dow Theory says about correction. In essence, Dow theory predicts that when the Dow Transportation Index fails to confirm a run-up in the Dow Industrials, the Industrials will correct, followed by a retest of the high, and then a retest of the lows.
    According to Dow theory, there will be a bounce coming up that will approach the recent high (a little above 1400), followed by a retest of whatever low we reach before this predicted bounce. 
    Myra Saefong suggests Donít give up on oil yet: Commodities Corner
    Cody Willard asks: Are you Ready for water inflation?
    Chuck Jaffe says The mind is a terrible way to trade.
    Greece says Merkel asked for euro referendum  
    Obama: G-8 to focus on managing euro zone crisis  
    State of the Markets articles include:   
    G-8 Meet in Camp David To Plot Strategy For Euro Crisis  
EU, ECB Reportedly Working On Contingency Plans for Greek Exit     Fed May Opt For Another Operation Twist      
    As usual, there's practically no news on Friday night.