Breaking Wall Street Market News & Reports

Markets have become excessively oversold and something has to give. Yesterday’s drop in the S&P of 6.66% was  a bit much excessive and only continued to accelerate after Obama’s speech. Was the 6.66% drop in the S&P a buy signal just as the March 9th, 2009 was a buy. How about this for coincidence, today is the 9th day of August 2011. I guess the only similarities were rallies in the 9th. If your a baseball fan there’s a common terminologyused “Rally in the 9th” We may be just experiencing just this. After 1100 point sell off in 3 days, I think we’re bound for a rally. Is the Fed, going to secure the rally until year’s end or will we dip into a recession? Time will only tell, but in any event, markets are seen as a huge discount. I wouldn’t get my feet wet just yet. We may recoup at least half of the 1100 point loss in the coming days!

Futures pointed to a higher open Tuesday morning, indicating a comeback from the previous session’s steep nosedive, as investors looked ahead to the Federal Reserve’s statement later this afternoon set for 2:15 PM EST. Economists have speculated the Fed could reaffirm that it will hold rates low for an extended time, and also now vow to keep its balance sheet bloated at nearly $3 trillion for a long time. But it is unlikely the Fed will embark another quantitative easing program anytime soon. Gold prices on the other hand, hit a record $1,778 an ounce in its biggest three-day rally since the depths of the financial crisis in late 2008.

On the economic front, productivity dropped 0.3 percent in the second quarter, according to the Labor Department, following a decline of 0.6 percent in the previous quarter. It is the first consecutive decline in productivity since the second half of 2008. The drop in productivity helped push unit labor costs up 2.2 percent.

Tags: 6.66%, 6.66% a buy signal, bernanke, Bernanke meeting, double-dip recession, fed meeting, market rally, productivity, relief rally, S&P, S&P 6.66% drop a buy, S&P drops 6.66%, S&P rally

This entry was posted on Tuesday, August 9th, 2011 at 9:32 am and is filed under Contributors, Debt, Economics, Facebook feed. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.