Daily Investment Interpretations

Monday, June 4, 2012

2012-6-4: (Monday Night): The markets closed mixed today: U.S. stocks shed most losses on Fed hopes; Stocks choppy as fear trade continues . The NASDAQ Composite closed up 12.53 points (0.46%) to end at 2,760.01. The Dow declined 17.18 points (-0.14%) to close at  12,101.39; the S&P 500 minced up 0.13 points (0.01%) to settle at 1,278.17. Oil ended the day at 84.18: Oil futures top $84 ahead of Nymex settlement; gold logged off at 1616: Gold futures close with a loss of over $8. The VIX dropped 0.82 to 25.84.
    "U.S. stocks in the red after a report on factory orders shows a decline, in contrast to economists' expectations. Concerns over sluggish U.S. jobs growth, a China slowdown, and a tottering Spanish banking system are all weighing on sentiment."
Worries about a global growth slowdown and uncertainty surrounding Europe's debt crisis kept investors on edge and stock trading choppy Monday. More"
    The markets closed Friday in a panic state. Now, the markets may be quite oversold and susceptible to a dead-cat bounce.
    Given that high-frequency traders are using keyword-driven, headline-based trading programs, it would seem to me to be a simple matter, if one owned the major financial-media outlets, to implement one's own trades a millisecond or two before one's headline releases reached the high-frequency trading practitioners.

    Marketwatch says: 
    U.S. factory orders decline  "Orders for goods produced in U.S. factories decline 0.6% in April, the Commerce Department reports."
    Summer slowdown  "
With investors in a sour mood and volumes set to lighten, check out MarketWatch's experts on trading one of the year's most challenging months."
    Mark Hulbert asks: Will the summer rally begin in June?
    Go away in May, come back in June
    Playing Europe in the near term
    European Central Bank's 7 phases  "Central banker Mario Draghi (left) must navigate an obstacle course that appears to hinge largely on developments in Spain, writes David Marsh."
    Soros: Clock's ticking on ending Europe crisis  
    Germany may yet be open to euro bonds  
    Europe weighs bank recapitalization via ESM  
    Spain's Rajoy calls for more EU control  
    Portugal's retrenchment deemed on track  
    Cyprus may be next to seek bailout  
    G-7 set to talk Europe on Tuesday  
    Craig Stephen observes: This Week in China: The slowdown spreads  
    Chinaís services show economic weakness             
    U.S. 10-year yields erase rise from record low  In other words, the "risk-off" flight to safety is back on.
    Nigam Arora writes The great bond bubble joins the S&P  
    Small-business slowdown  "Lawmakers in D.C. have criticized banks for not lending enough to small businesses. But is the blame misplaced?"
    Cody Willard explains Why Iím buying this market. "Lessons from Cody's hedge fund days taught him to buy when there is panic."   
    Get ready for Dow 11,000  
    Michael Gayad explains Why another stock melt-up is likely.  

    State of the Markets articles include:   
    Looking Ahead to Tuesday's Market  
    Technical Talk: Sometimes It's Easy "Sometimes understanding what is going on in the markets is pretty straightforward and Monday appears to be one of those times. The charts tell us ... Read More Ľ"
    The Dance Continues  "Here we go again. While I'm not sure exactly how many times we've done this dance before, it looks as if the European leaders have come up with the latest and greatest plan to save the day. Just when investors appear to have given up hope and that stock prices around the globe are about to get a lot worse than they already are (if Friday's dive in the major indices didn't spell out this idea then the record low in bond and bund yields, the spike in the UUP (U.S. dollar) and the GLD (gold etf), as well as the ongoing fall in commodity ... Read More Ľ
    Why a 'Grexit' Would Make Lehman Look Like Childs Play  "Maybe Iím wrong, but every time I look at the possibility of a Greek exit right now I see it spiraling out of control and dragging down the entire global economy. I hear and read the arguments of why it is controllable and they just donít seem credible. They either... "
    Europe Update: Germany Softening Opposition to Eurobonds-  
    China's Services PMI Pulls Back in May    
    On Friday, I wrote, " This week ended with the markets falling off a cliff. Let's see what happens this weekend." In fact, nothing happened this weekend, but this morning, Eurozone principals made soothing remarks, and market futures went from very negative to somewhat positive.
    Market futures are slightly positive tonight.