Weekend Reading: More Churning

Good Sunday morning, and welcome to another edition of Weekend Reading. First, a look back at the week that just finished, then a look forward to the week ahead and, finally, a summary of articles and papers worth reading.

It was the first down week in ages for most of the major markets, even if the Nasdaq didn't go along. (See table below.) Nervousness about banks, weak earnings and a slowing of recent gains -- which have taken the markets up 25%-plus -- were all causes.

Next week looks like more of the churning same. We face more earnings reports, more chatter around the bank stress tests, a teetering auto sector, capital raises and a host of economic indicators. While that doesn't mean that the market will weaken materially, it does mean -- when combined with much higher equity levels -- that we likely will churn in place for a spell. ...