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picaso
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 Subject: Re: US Market Dow Jones  Fri Oct 09, 2009 10:21 am |
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Believe It Or Not, In Defense of the Dollar
The fact is, there are no good alternatives to the U.S. dollar.
Now that is has become clear to many that the rally in equities since March may have gone too far too fast, I detect a common theme among financial journalists and pundits. Simply stated, they point out that the U.S. is running historically high fiscal deficits concurrent with the Federal Reserve printing money (creating reserves) to purchase debt and support declining asset prices (supporting the large banks). The implication? That the U.S. dollar is rapidly depreciating, and therefore any investment in the U.S. Treasuries defies common sense.
At first blush, this reasoning seems to make sense. But let's take it to the next step -- why single out the Treasuries? ANY dollar-denominated asset must be eschewed: equities, real estate... everything. Wouldn't you agree?
How many times have you heard about this Armageddon-style scenario -- that the soaring Treasury sales and the decline of the dollar will prompt foreign governments such as China and Saudi Arabia to stop investing their trade-earned dollars in U.S. securities? But here's the reality: They are not selling their depreciating dollar-denominated assets -- they are buying more. So far, foreign investors have bought 43% of the $1.41 trillion of Treasury notes and bonds issued this year -- versus 27% of the $527 billion sold in the same 2008 period.
Yes, America's fiscal problems are big, and intuition alone should tell investors to look elsewhere for security. Well, pardon my bluntness, but who said that investors -- be they governments or individual speculators -- had that much common sense?
Besides, there are no real alternatives to the dollar. We continue to use dollars to buy homes, make investments and pay debts because we believe in the “Full Faith and Credit of the United States Government." Yes, China owns trillions of dollars and is our largest creditor -- but is the yuan a real alternative to the buck? An artificially depreciated currency under the auspices of an opaque, totalitarian government? Please. And where would China’s economy be in the first place without the massive funding of America's debt? China has no choice but to reinvest its dollars in the U.S. to fund our further trade in their goods. |
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| Subject: Re: US Market Dow Jones Thu Sep 03, 2009 7:27 pm |
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9/3/2009 3:00:00 PM ET DJ30 PointChange: +12.32 Level: 9293.06 NASDAQ PointChange: +4.92 Level: 1973.10 SP500 PointChange: +1.89 Level: 997.36 NASDAQ-Adv:1473 Dec: 1137 NYSE-Adv:1956 Dec: 1023
This session remains thinly traded with stocks stuck in a narrow range -- since yesterday morning the S&P 500 has stayed within a span of less than 10 points, or 1% from intraday high to intraday low.
The sideways movement has underscored the calmness ahead of the August nonfarm paryrolls report, which will be released tomorrow morning. The report will be the primary item of focus for participants, since many economists believe that it is a telling sign of the economy's health.[u] |
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| Subject: Re: US Market Dow Jones Thu Feb 12, 2009 10:44 pm |
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Mortgage Plan Spurs Late Rebound
Dow -6.77 at 7932.76, Nasdaq +11.21 at 1541.71, S&P +1.45 at 835.19
Word that the Obama administration is working on a plan to subsidize mortgage payments for troubled homeowners spurred a late rebound in the major indices. That helped the stock market turn a 3% loss into a modest gain.
Stocks traded with broad-based weakness for much of the session. The downbeat tone was an extension of the stock market's inability to sustain an advance since tumbling Tuesday in the wake of Treasury's disappointing bank rescue plan.
The Dow actually fell to its lowest level since registering a bear market low on Nov. 21, while the S&P 500 approached its January lows.
Declines were led by financial stocks, which remain central to the concerns for the broader stock market. Financials were down more than 7% at their session low, but finished the session with a 1.3% loss.
Stocks put together a rebound after Reuters reported the Obama administration is working on a plan to subsidize mortgage payments for troubled homeowners that pass certain tests. Fannie Mae and Freddie Mac would reportedly play a supporting role. Market participants cheered the news since stemming foreclosures is considered central to restoring the mortgage market, which will help stop bank write-downs.
Meanwhile, investors remain largely unimpressed by the $789.5 billion economic stimulus bill, which is expected to come to a vote by this weekend. Critics contend the bill is unlikely to lead a recovery in the short-term.
Investors looked past the latest batch of quarterly announcements. Coca-Cola (KO 44.39, +3.12) led the way by announcing better-than-expected results. Its rival Pepsico (PEP 52.00, +1.39) announces tomorrow. Waste Management (WMI 29.26, +0.81) and Aetna (AET 33.06, +0.82) both topped expectations as well. Network Appliances (NTAP 16.40, +1.20) performed in-line with estimates, while Las Vegas Sands (LVS 3.49, -0.49) disappointed with a loss. Overall, the announcements failed to have much influence in the broader market.
Market participants found little inspiration from a better-than-expected January retail sales report. The report showed January retail sales jumped 1%, which is the first increase since a 0.1% gain in July.
However, the report is being treated with skepticism amid ongoing reminders of poor macro conditions. Jobless claims for the week ending Feb. 7 totaled 623,000, which is a bit more than expected, but down slightly from the prior week. Initial claims are at their highest level in more than 25 years.
Meanwhile, 4.81 million continuing claims were filed. That is the highest level recorded since records began in 1967.
Separately, businesses inventories dropped a larger-than-expected 1.3% in December. That is the largest drop since 2001. |
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| Subject: Re: US Market Dow Jones Sun Feb 01, 2009 7:34 pm |
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DOW on 1/30/2009
Open 8,078.04, Low 7,957.38, High 8,405.87, Close 8,000.46 Change -77.10
RSI is at 33.76 in the neutral territory. The Relative Momentum Index is at 15.37 in the oversold territory. STORSI is at 34.95. This value is in the neutral territory.
Tomorrow's projected High: 8,203.17, the projected Low:7,754.67 |
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| Subject: Re: US Market Dow Jones Mon Jan 19, 2009 6:20 pm |
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Ian
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Join date: 2008-10-26
Posts: 74
Location: Riyadh, Saudi Arabia
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| Subject: US Market Dow Jones Wed Jan 07, 2009 5:02 pm |
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DOW on 1/6/2009
Open 8,954.57, Low 8,868.07, High 9,175.19, Close 9,015.10 Change 62.21
DOW The Relative Strength Index is at 57.45 in the neutral territory. The Relative Momentum Index is at 55.63 in the neutral territory. An equally important indicator, the STORSI is at 90.99. This value is in the overbought territory.
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