Weekly Wrap-Up
Big T's Takeaways
Thursday's pullback across the S&P 500, Dow 30 and NASDAQ was greeted with ever increasing fear by market participants.
This ratcheting up of fear is actually positive for the stock market: The more folks doubt the validity of the move, the more this generally suggests that the market will keep moving higher.
On Friday we saw the potentially devastating announcement that Moody's was downgrading 15 banks. However, this news was greeted with a yawn and the market actually moved up.
Whenever you see the market rally on bearish news, you must take notice, because it is indicative of a bullish environment. This again suggests that stocks are looking for a reason to go higher.
We also saw the ECB lower their collateral standards, which in and of itself is a form of quantitative easing (QE).
So far stock prices appear to be willing to shrug off bad economic news. This will only continue if the market keeps believing that more QE is coming.
For what it's worth, both Ben Bernanke and the ECB appear to be willing to do their part to make that happen.
-
Wall
Street Getting Ready to Ambush American Investors
Again
Wall Street is at it again, spinning up the mother of all stock scams as they set out to rob the public one more time -- click here for more.
-
The
Trend is Your Friend... Until it
Isn't
Chris Rowe breaks down one of his top intermediate term trend indicators that you can put to work right now -- click here for more.
-
Another
Lost Decade Ahead?
Ed Pawelec explains why he thinks Ben Bernanke is dooming the U.S. to another lost decade of growth -- click here for more.
-
3 Simple Rules
for Keeping Your Cool
Former options floor trader Costas Bocelli shares three "secrets" to staying cool -- click here for more.
-
Do
You Have the Wrong Type of Risk in Your
Portfolio?
Contributing Author Christy Heady keeps it simple, as she succinctly explains the difference between "good" and "bad" risk -- click here for more.
Big T's Takeaways
Thursday's pullback across the S&P 500, Dow 30 and NASDAQ was greeted with ever increasing fear by market participants.
This ratcheting up of fear is actually positive for the stock market: The more folks doubt the validity of the move, the more this generally suggests that the market will keep moving higher.
On Friday we saw the potentially devastating announcement that Moody's was downgrading 15 banks. However, this news was greeted with a yawn and the market actually moved up.
Whenever you see the market rally on bearish news, you must take notice, because it is indicative of a bullish environment. This again suggests that stocks are looking for a reason to go higher.
We also saw the ECB lower their collateral standards, which in and of itself is a form of quantitative easing (QE).
So far stock prices appear to be willing to shrug off bad economic news. This will only continue if the market keeps believing that more QE is coming.
For what it's worth, both Ben Bernanke and the ECB appear to be willing to do their part to make that happen.
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Comments:
FollowTheFacts
6/23/2012 4:51 PM
...good wrap up... "quantitative easing" should always be used with quotation marks in my picky opinion...disinterested
6/24/2012 7:41 AM
Same old same old! Sounds like a fairy story told a hundred different times in a hundred different ways Please delete me from your mailing lists.a.schneider
6/24/2012 11:54 PM
I gave up on ETFs over ten years ago. Lack of research and good returns, made me quit.