Investing.com - Financial Markets Worldwide
🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Hope Motivates Bulls Once Again

ByWall Street Sector Selector
AuthorJohn Nyaradi
Published 01/11/2012, 02:30 AM
Updated 05/14/2017, 06:45 AM
BAC
-
GC
-
TISI
-
Markets again shifted their focus off of Europe and continued the surge through Tuesday

.

Major markets continued to surge yesterday as the euro rose (NYSEARCA:FXE), the US dollar fell (NYSEARCA:UUP) and Europe still remains intact.

Despite the late “Santa Rally” and a great “First Five Days,” we are still far from being out of the woods with Europe, and any distraction is a blessing as Team Merkozy and company will likely find another country in the region that is on the brink of default.  The usual suspects of course include Italy, Spain, Greece, and France.

The US Economy, however, continues its tortoise-slow recovery as Wholesale inventories rise 0.1% (improvement?) and the NFIB Small-Business index which represents optimism for small businesses, increased yet again for the month of December.

The rush yesterday was also spurred by major bank stocks’ rising; Bank of America (NSYE:BAC) led the pack by rising an astonishing 5.7%.

Lastly, Gold (NYSEARC:GLD) and Oil (NYSEARCA:USO) rose as well likely due to spurs in economic activity, and, let’s face it: Gold likely has nowhere to go but up after its most recent bloodbath last year.

Bottom Line: Our recent surge is likely due to relatively positive US economic indicators coupled with seasonal trends which include the “Santa Rally” and the “First Five Days” indicators. Europe, too, has managed to stave off catastrophe as well, adding to the illusion that we are out of the woods.  As I said Monday, Europe needs to keep containing its disaster and just maybe the bulls will be fueled by demand instead of hope.

Disclaimer: Wall Street Sector Selector trades a wide variety of ETFs and positions can change at anytime.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.