Daily Investment Interpretations

Friday, June 11, 2012

2012-6-11: (Monday Night): The markets leaped today on news that Spain will rescue its banks, and then fell, to close markedly lower: Spain high to Greece low; U.S. stocks lower as Spain enthusiasm fizzles. The NASDAQ Composite plunged 48.69 points (-1.70%) to end at 2,809.73. The Dow posted a triple-digit loss of 142.97 points (-1.14%) to close at  12,411.23; the S&P 500 retrenched 16.73 points (-1.26%) to settle at 1,308.93. Oil ended the day at 81.43: Oil sinks below $83 a barrel; gold logged off at 1599: Gold gains. The VIX dropped 2.23 to 23.56.
    "U.S. stocks' gains slip away as investors look beyond Spain's request for financial aid and shift focus toward Greece's elections."
    "
Following a higher open, U.S. stocks slid into the red Monday as early enthusiasm over a $125 billion bailout for Spanish banks fizzled. More".
    Paul Krugman sums it up in Permanent Link to Things You Really Don’t Want To See The Morning After A Bailout.

    Marketwatch says: 
    Marshall Ashbaugh calls today's action A sluggish response to a bullish catalyst  
    Why bondholders are scared about Spain  "Who will pay for the Spain bank bailout? That is the question hounding bond investors."
    Spain uncertainty remains even after bailout.  
    Bailout seen shoring up Spain's debt market.  
    Greece spoils the party.
    The euro is not dead yet 
    Nigam Arora says: Gold crowd gets India wrong.  
    Craig Stephen tells us about China’s ‘feel-bad’ interest rate cut.  
    David Marsh notes that Pavlik: Vote for French Left weakens Merkel.  
    Myra Saefong addresses: OPEC’s fine line of oil balance and chaos.
    Peter Brimelow: Decade’s top performer dubious.  
    Ex-MF Global economist wins 9th award
"“The recovery itself has proven much more resilient and self-sustaining than the bears have predicted, but it has still been a disappointment, triggering several rounds of monetary stimulus,” O’Sullivan continued.
    "“On the positive side, many of the headwinds that have been holding back the recovery are fading, with the drag from deleveraging past its peak, the banking system starting to ease lending standards, and the financial crisis from 3-plus years ago starting to fade in memories and fade as a driver of behavior,” O’Sullivan said.
"
       

    State of the Markets articles include:   
    Looking Ahead to Tuesday's Market  
    Technical Talk: Buy The Rumor and...  "The tape action has been nothing short of abysmal so far on Monday as traders appear to be completing the second phase of the "buy the rumor, sell the fact" trade ... Read More »"
    Spain To Get 100 Billion To Recapitalize Banks  
    Spain Gets Its Bailout, Now What?  
    Does This Ever End? "One of the key things that has kept hope alive for stock market investors over that past two years is that the European debt crisis would eventually end. As each and every deadline and/or EU Summit has come and gone, investors have been able to breathe a sigh of relief that the sky did not fall. And given that the sun did indeed rise after each and every big, bad event, the stock market eventually moved on from the debt mess across the pond. With word that the latest threat to the global banking system - Spain (EWP) - is ... Read More »"
    China Economic Data Largely Weaker Than Expected  
    Tech Tidbits    
    Quotable Quotes and Notable Notes From The Week That Was  

    Market futures are up ⅓ % tonight.