Stocks are Up Today ~ Interesting Next Fortnight Coming Up ! Indications are not to Short
The S & P recorded a Four Year High after May 2008 closing yesterday at 1430 while the Dow Jones surged to 13274 as European Central Bank (ECB) announced a new Initiative of unlimited purchase of Bonds to stabilise the Euro and the Eurozone
ECB President Mario Draghi left the Interest Rate unchanged at 0.75% while announcing the Outright Monetary Transactions (OMT) Programme stating that there will be an unlimited purchase of Bonds with maturity of one to three years
A Big Hurdle remains Germany’s Court ~ On September 12,2012 it could rule that the ESM is not constitutional and negate Draghi’s initiative to implement OMT
Sensex and Nifty have taken cue and flared up 1.5% + at 17600+ and 5300+ respectively today
Interestingly Gold has crossed Rs 32000/ten grams and even more interestingly RBI’s Deputy Governor,Mr K C Chakrabarty has strongly advocated not to invest in it ~ Contrast this with Citi’s View that Gold will flare to US $ 2500/oz from current US $ 1692/oz in six months !
Next Week is going to be Important for Global Capital Markets ~ Mark these Dates
EuroZone ~September 12,2012 ~ The German Constitutional Court of 16 Judges will rule on the Constitutionality of the European Stability Mechanism (ESM) ~ The German Legislature has already approved it
USA ~ Fed Meet ~ September 12/13 ~ US FOMC meets under Fed Chief Ben Bernanke to review Policy and expectations are of a Quantitative Easing 3 Initiative which would involve more printing of US $ Currency ~ Bernanke has a strong Labour Report to back him this time ~The ADP (Automatic Data Processing Inc) Report showed that 201000 private jobs were created in USA in August against an expectation of 140000 ~ Today the US Government will announce the Employment Report for August and while it is expected that 125000 non farm jobs to have been created,going by the ADP Report this expectation too would be easily surpassed ~ US Unemployment rate is expected to remain at 8.3%
Next Week should be quite exciting on the global bourses if the events of September 12,13 as above have favourable outcomes ~ Markets will ignore geo political tensions of the Iran conflict and that China is visibly slowing down
RBI then could add a further catalyst on Monday,September 17,2012
India ~RBI Monetary Policy Meet ~ September 17,2012 ~ CRR is expected to be reduced
Reiterate ~ Indications are not to Short
3 thoughts on “Stocks are Up Today ~ Gold is Bullish too ~ Interesting Next Fortnight Coming Up !~ Indications are not to Short”
On 5th Sept 2008 I had very strongly recommended CIT (Citi Group) @ US$0.97. Very few people agreed with me and said that the bank has sunk. Today, exactly after four years the share is trading @ US$38 which touched a 52 week high of US$46.
This is a good time to invest in FB (Face Book).
Rudra this is Herd Investor Psychology at play ~ Everyone Panics together or get excited together and smart investors can take advantage if the valuations and risks are well assessed
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