March 4, 2012
Weekly Market Outlook
By Keith Schneider
Not ones to miss out on an opportunity to party, some Grecians took off from full time riot duty protesting newly implemented austerity measures, to celebrate “Clean Monday” festival that marks the beginning of Lent. Some of those inclined to a sinister view have suggested this was really a celebration of Greece being Lent 130 billion Euro’s that will not be repaid. In one fell swoop, the Greek Bail-out fall-out has been obscured by plumes of colored flour. This is not exactly how the “analysts” predicted the effects of austerity would play out in Greece. The Damocles debt sword overhanging the global economy seems but a distant memory and the markets just paused this week to its melt up.
Gold got hit hard as interest rates rose, being fueled by mysterious job growth even surprising the Fed. If this week’s linkage between Stocks, Gold, Interest Rates, and the Dollar sustains it should be viewed as positive for the equity markets and the world economy. Our biggest concern is that if there is no wall of worry to climb, could this weeks mixed results in the equity markets be a turning point? Of course there is always the Iranian issue simmering, and potential political unrest brewing in Russia. So, if one is prone to bouts of pessimism, it’s also possible that if Bin- Laden never received a proper burial (according to Wiki-leaks) jihadists will be energized to greater acts of terrorism. So for die hard bulls who needs walls to climb, don’t despair; there is some bad news to choose from.
The volume remains light and if funds sitting on the sidelines get the feeling that they are left behind, there is plenty more to the upside. There is also a relatively rare short term pattern in the S&P, so let’s go to the video.
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