by Ed Pennock on Apr 18, 2011
Yesterday markets started down in Asia and by the time they got to Europe the initial declines of half a percent became one percent in Europe and by the Time the US opened was down one and a half percent heading towards two percent. North America followed and the Dow was down as much as 163 points. It finished down 39 points and the TSX was up 3 points. A telling day, notwithstanding the headline of the Irish bailout. Late in the afternoon (after European markets were closed)the tide reversed and we clawed our way back. Someone had pointed out that maybe the problems "over there" weren't really going to affect the prospects for a large number of stocks
It was strength in oil which helped the sector stocks. Interestingly Oil seems to have detached from the DXY/(US$) which tells us that the demand is being driven by expected strength in the US Economy. That could be at least partially the cause for the Leadership from US Banks. In Canada they too are looking better as the market starts to discount good year end numbers and (drum roll) dividend increases??
Barrons talks about Black Friday and warns about Blue Tuesday. However our read is that the Consumer is Back. Not like before but the 50 year pattern has not been totally eradicated
What has been of note in the past few days is the willingness of some to short stocks but also at the slightest change in Momentum , to cover immediately. Hence the Volatility. And, its not going away!
More and more clients are coming round to our view of the world and starting to add to their stocks. Just being reflective, we put Ireland into Chapter 11 and the S&P is still at 1188 ie very close to 1200. Just think about what went on around the Greece Bailout.
The market is evolving… Invest the Money
Chart of the Day: Amazon Mining AMZ-V
Amazon Mining breaks through its recent consolidation with a boost from a hot fertilizer space.
Quote of the day
The latter stage of an economic recovery, where head count is rising and productivity is starting to fall, is the best for technology spending, and that's where we will be in 2006. Business leaders start thinking more about technology and less about questions like capacity expansion or how long the recovery will last. by Arnie Berman
Managing Director, Equity Capital Markets, NCP NORTHLAND CAPITAL PARTNERS INC.
Ed is well known as an Industry veteran in the Institutional marketplace. Starting on the floor of the Montreal Stock Exchange, he became involved in the Institutional Equity market from its earliest days. He helped found such firms as Brown Baldwin Insti
+ more