Financials Will Dominate Earnings - Comps will Be Tough. Resistance Is Holding
In the last few weeks the market rally has been characterized by light volume overnight gaps. This is not a healthy sign. Let's review some of the issues weighing on the market. China's economy is slowing down. In 2011 they slammed on the brakes by raising interest rates and bank reserve requirements six times. Their Finance Minister painted a very weak picture for Q1 and he cited rising costs. China's CPI came in higher than expected last night and that might postpone easing. Economic conditions in Europe are also slowing down. Yesterday, Germany (the strongest/largest country) reported that Q4 GDP declined …
January 12, 2012
• Posted in: Options
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