Thursday, November 11, 2010

Markets drop on worsening global trade relations

Stocks fell for the 3rd time this week, this time because Cisco (CSCO) had a discouraging profit outlook & an unsuccessful G-20 meeting.  The € weakened & Irish bonds slid amid concern indebted European nations may need bailouts. Dow dropped 73, decliners over advancers 2-1 & NAZ lost 23.  Bank stocks were lower, taking the Financial Index down 2 as it heads back to 200.


Value 204.09 One-Year Chart for S&P 500 FINANCIALS INDEX (S5FINL:IND)
Change   -1.93  (-0.9%)

The MLP index fell a fraction in the 362s & the REIT index lost 2 to 221.  Junk bond funds lost ground in today's sell-of.  Oil was down pennies & gold managed to sneak up 4 to 1403 as its rally stalled.

Alerian MLP Index   ---   3 months

Dow Jones REIT Index   ---   3 months

Bank stocks also contributed to today's decline but the Financial Index has had a nice rally since Labor Day with a 13% rally.  Citi (C) has benefited.  Even though the gov is selling off its massive stake in Citi, the stock has climbed 10% in 3 months. Bigger picture, the index remains stock in its sideways rut which has lasted more than 6 months.  MLPs have topped out at record levels, they need time to rest.  Tomorrow should bring announcements from Asia on the G-20 meeting & all indications are that disagreement is the one word that summarizes this meeting.  Much of the disagreement come from the QE2 Treasury buy back by the Federal Reserve which is not being well received around the world since it promotes a weaker dollar.

Dow Jones Industrials   ---   3 months

**Gold Super Cycle**  
Click Here

Get your favorite symbols' Trend Analysis TODAY!  
Click Here

Find out what's inside Trend TV!!  
Click Here

No comments: