Earnings news from Intel (INTC) stopped bulls in their tracks as did continuing pessimism from the eurozone where credibility is challenged. Intel's warning continued a string of warnings from a variety of companies who see soft times ahead. I'd like to be more bullish, but there isn't much to be enthusiastic about. Sure, the Fed will meet Tuesday and may unleash QE3, or a variation of it, which will flood markets with liquidity. This will buy time and that's about it since the troubles facing the U.S. and Europe have no quick fix.
Retail investors continue to exit markets as noted by Deutsche Bank as follows: "Investors
fled from equities (November) with outflows of $6.8bn from long-only ETPs; while pouring $4.9bn and $3.1bn into fixed income."
And while you might be quick to label me a Debbie Downer, there is no escaping the realities of our situation. The politics over the next 12 months will be poisonous, petty and cynical. Not much will get done beyond some temporary money printing which comes with its own negatives.
Financial and materials sectors led the way lower Monday. Declines in these sectors represent the tell the future won't be rosy.Gold prices fell sharply as the dollar rallied and the euro fell. Commodity prices overall were weak while bonds rallied as markets continued their schizophrenic behavior. Volume was modest overall which may be only somewhat encouraging. Breadth per the WSJ was quite negative. You can follow our pithy comments on twitter and join the banter with me on facebook. Continue to U.S. Sector, Stocks & Bond ETFs
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV