We’re not at 1300 yet!
by Peter Switzer
What I do like to see is that both financial and materials are gaining friends and when fear and loathing prevails, these two sectors get smashed — especially US financials which are seen as vulnerable to the debt challenges of Europe.
For the record, the all-important S&P 500 index finished up 3.02 points to 1295.5 and the VIX or fear index is hovering around 21. When this goes below 20, the S&P 500 benchmark is bound to be crashing through the 1300-level.
This is gripping stuff for a money man like me!
This result was made to look better with pretty weak retail and jobless claims data.
The great news was the Spanish bond auction where it had a lot of support and yields fell! That is big news and we can only hope this starts to happen more often around the EU.
For those interested, the European Central Bank left interest rates at one per cent. This is a sign that the ECB does not think a terrible recession is due to hit the continent — I hope they’re right as it will set us up for a stock market comeback later in the year.
All up the market result was good news but we need some really big, impressive developments to see more positive action on stocks.
Our near-term wealth rides on our buddies in Europe.
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Published on: Friday, January 13, 2012
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