Week Sept 24 2010 – Weekly Recap & The Week Ahead
In investing, the return you want should depend on whether you want to eat well or sleep well — J. Kenfield Moreley
1. Fed hints at QE 2.0 — The Fed reiterated its commitment to near-zero interest rates yesterday, as expected, but opened the door to the possibility of more QE in the near future.
2. BOJ official hints at further easing — Bank of Japan policy board member Ryuzo Miyao suggested today that the BOJ will continue to loosen its purse strings, saying the central bank would take “timely and appropriate” action if downside risks to the Japanese economy materialize.
3. S&P500 Overbought — interesting chart from the Bespoke Investment Group depicting the S&P500 50-DMA spread measured in standard deviations. The chart shows the S&P500 is currently trading at an overbought levels similar to where it was in late April and early August.
4. Bullish Sentiment Highest Since Early August — According to the Investors Intelligence weekly sentiment survey, bullish sentiment (41.4%) among advisors is currently at its highest level since early August.
5. According to the Dow Theory — primary trend of market is UP — Currently, the DOW is at 10,739 and the high for the Transport 4,540; Both indexes are up from their respective Aug 9th closing high of DOW 10,698.75 and Transport at 4,516.35.
6. Durable Goods — gains in machinery, computers and fabricated-metal products, as well as an upward revision to July’s durable-goods data. Also, a barometer of capital spending by businesses rose; orders for non-defense capital goods, excluding aircraft, increased by 4.1%.
7. Gold — Gold futures climbed above $1,300 an ounce; New high for the year.
8. David Tepper — HedgeFund Biggie Video on CNBC.
The week ahead — Economic data:
