This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Central Bank Liquidity Props Markets: Dave's Daily

Stocks in this article: TAN PBW CSCO IGN BAC C XLF V GRPN

I would advise most to forget PEs, current earnings and dividends, global economic indicators and even Greece (if only temporarily). The number one factor driving global stock indexes higher are monetary policies and liquidity impact from the three central bank amigos. Sure markets are overbought and volume remains scant. The first condition is readily viewed by any number of respectable indicators: McClellan Summation Index (featured near the end of this posting), DeMark Indicators, Relative Strength Index and so forth). Light volume is due to ongoing investor flight as many sit on their hands.

Over the past month we've been adding to long equity positions but admit to holding our nose as we do so. Light volume, overbought conditions and exogenous events make markets "accident prone". It scares the hell out of most investors and when combined with animal spirits and pressure to perform it's a tough market to rationalize. Call it what you will, central banks are printing, adding liquidity and this will force stock prices to inflate. The results may be little different than seen with QE1, QE2 and now global QE3. It's Keynes on steroids.

So don't let the financial media BS you about this and that--know what's really going on and either surrender to it, as we must, or stay away as it seems many are.

Stocks were unchanged early, fell on Greek rumors and then rose again late abetted by algos and their HFT cohorts. It's the new normal folks.

Earnings news was led by Time Warner (TWX) which beat estimates ($.94 vs $.89 expected), Moody's (MCO) missed ($.43 versus $.49 expected) and Buffalo Wild Wings (BWLD) beating earnings Tuesday after the close ($.75 versus $.67 expected). BWLD shares were up nearly 17% on Wednesday. This must be what the USA is now about--gadgets, sports and fast food.

After the close much watched Visa (V) reported earnings that beat estimates ($1.49 versus $1.45) and the stock rose slightly in late trading. Whole Foods (WFM) reported earnings late which also beat estimates ($.65 versus $.60 expected). Cisco (CSCO) reported earnings ($.47 versus $.38 expected) after many adjustments. The stock rose over 3% in late trading. Groupon (GRPN) reported a loss (-$.08 versus $.03 expected) and the stock was down nearly 8% in late trading.

Gold prices fell as the dollar recovered most of its intraday losses. The same could be said for other markets like crude oil which was also higher early but gave back most its gains along with other commodities.  Bonds were only slightly lower.

Volume was once again light and breadth per the WSJ was mildly positive amping-up overbought conditions.

You can follow our pithy comments on twitter and join the banter with me on facebook.

SPY - The SPDR® S&P 500® ETF is a fund that, before expenses, generally corresponds to the price and yield performance of the S&P 500 Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
See more details

IWM - The iShares Russell 2000 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the small capitalization sector of the U.S. equity market as represented by the Russell 2000 Index. The index represents the approximately 2,000 smallest companies in the Russell 3000 Index.
See more details

QQQ - is an exchange-traded fund based on the Nasdaq-100 Index ®. The Fund will, under most circumstances, consists of all of stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The portfolio is rebalanced quarterly and reconstituted annually. See more details

Continue to U.S. Sector, Stocks & Bond ETFs

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs