Weekly Wrap-Up
Big T's Takeaways
It sure looked like the market was going to roll over Friday morning but, lo-and-behold, stock prices started to catch a bid.
Optimism remains high that the European powers-that-be will put together a rescue package for Spain's banks. Whether that is pure wishful thinking or not remains to be seen.
We also saw all of the major ratings agencies put the U.S. on credit watch with negative implications. So far only S&P has downgraded the United States, but last week's news makes it a virtual certainty that Fitch and Moody's will follow suit sometime next year. This is a story that is being relegated to the back burner, but as we get closer to the end of the year expect it to start filling the front page again.
As bearish as things may currently look, there are two rays of bullish sunshine that you must be made aware of...
The first is sentiment, which is already extremely bearish with a nary a bull to be found. In order to see a much bigger slide, you typically need to see more complacency. Right now we are seeing the opposite of that -- investors are cautious and skittish. It's tough to fall off a cliff when everyone is looking for the cliff.
The second ray of hope in which the bulls should take heart is the fact that the S&P 500 closed above its 20-day moving average. This is a bullish sign that should not be ignored.
However, neither one of those items will be compelling enough to save us from a drop if the news this weekend is not to the Street's liking.
Long story short, we continue to be in a headline driven market.
-
Revenge
is Sweet: Too-Big-To-Fail Banks About to Meet Their Arch
Nemesis
Ed Pawelec lets us in on a behind-the-scenes drama in the world of banking that is sure to result in more fireworks for this volatile group -- click here for more.
-
Markets
Give Long Term Income Investors a Huge
Gift
Big T takes us into the mind of a long term income investor as he makes the case for buying stocks over bonds -- click here for more.
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Bear
or Bull? What's Next for Markets?
Costas Bocelli breaks down the S&P 500 and all of the potential twists and turns you need to be aware of -- click here for more.
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Can
Gold Move 69% Higher?
Chris Rowe delivers an in-depth study of the technical tools he's using to make a bold call on gold -- click here for more.
-
Follow
the Stocks, Not the Headlines
Marc Lichtenfeld says it's time to buy the dip, and shares his favorite income play -- click here for more.
Big T's Takeaways
It sure looked like the market was going to roll over Friday morning but, lo-and-behold, stock prices started to catch a bid.
Optimism remains high that the European powers-that-be will put together a rescue package for Spain's banks. Whether that is pure wishful thinking or not remains to be seen.
We also saw all of the major ratings agencies put the U.S. on credit watch with negative implications. So far only S&P has downgraded the United States, but last week's news makes it a virtual certainty that Fitch and Moody's will follow suit sometime next year. This is a story that is being relegated to the back burner, but as we get closer to the end of the year expect it to start filling the front page again.
As bearish as things may currently look, there are two rays of bullish sunshine that you must be made aware of...
The first is sentiment, which is already extremely bearish with a nary a bull to be found. In order to see a much bigger slide, you typically need to see more complacency. Right now we are seeing the opposite of that -- investors are cautious and skittish. It's tough to fall off a cliff when everyone is looking for the cliff.
The second ray of hope in which the bulls should take heart is the fact that the S&P 500 closed above its 20-day moving average. This is a bullish sign that should not be ignored.
However, neither one of those items will be compelling enough to save us from a drop if the news this weekend is not to the Street's liking.
Long story short, we continue to be in a headline driven market.
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Comments:
Guest
6/11/2012 10:17 PM
The info is so-so but the fact that you take Obama ads makes me question not only its validity but your commitment to a strong economy as well. I'm not impressed...