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The Wall Street Greek blog is the sexy & syndicated financial securities markets publication of former Senior Equity Analyst Markos N. Kaminis. Our stock market blog reaches reputable publishers & private networks and is an unbiased, independent Wall Street research resource on the economy, stocks, gold & currency, energy & oil, real estate and more. Wall Street & Greece should be as honest, dependable and passionate as The Greek.


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Saturday, May 29, 2010

Wall Street Week in Wild Review

wall street week in wild review
It was a wild ride on Wall Street last week as volatility dominated the day

"The Greek" earned clients a 23% average annual return over five years as a stock analyst on Wall Street. While writing for Wall Street Greek and others, he presciently predicted the financial crisis and housing and banking failures of the Great Recession. Visit the front pages of Wall Street Greek now to see our current coverage of business news, global financial markets, real estate, shipping, fine art, technical analysis and global affairs.

(Tickers: NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: DOG, NYSE: SDS, NYSE: QLD, NYSE: ICE, NYSE: NYX, Nasdaq: NDAQ)

Wall Street Week in Wild Review



MarkosA slew of foreign factors along with regular economic reports played havoc with Wall Street again last week. While the Dow Jones Industrials Index only dropped fractionally, hidden within the weekly chart is a virtual roller coaster ride. The daily differences between high and low price marks swung wildly all week long, with Monday's spread measuring 207 points; Tuesday's gap marking 305 points; Wednesday measuring 273 points; Thursday swaying 307 points; and Friday settling after a 215 point swing. Believe it or not though, the week was relatively calm when compared to its near predecessors. The S&P Volatility Index, known affectionately to traders as the "VIX", actually dropped 20% through the week. Still, the situation is like saying this latest hurricane did not kill as many people as the last. It has been an especially rough hurricane season, by the way, with stocks closing out their worst month in over a year as the Dow dropped 7.9%. Proponents of the old adage, "Sell in May and walk away," could likewise walk with heads held high, as this year's version of May looks to be the worst since 1962.

Driving the swings in shares were some old familiar faces and some new ones to keep things fresh. Europe is now a regular pain in the rear, and last week saw Spain's government debt downgraded for the second time in a month. The poor Spanish, though, only sought to give their debt judges and European masters what they demanded. In a cruel twist of fate, Fitch downgraded the Spaniards' sovereign debt rating because of their implementation of austerity measures, noting in their critical report that its latest prudent budget management would slow Spain's economy. Talk about a lose lose situation! So what do you think Greece's extreme austerity measures threaten to lead to in the motherland? Looks to me like the worst economic situation since World War II.

Regarding Spain, Fitch also noted the nation's central bank bailout of one of its regional banks. This leads us to one of the few positive factors found in the spastic week. European Union Financial Services Commissioner Michel Barnier said last week that the EU should levy a tax on banks to secure an emergency pool of funds for the future orderly unwinding of important financial institutions. This reassuring announcement acted as a counter against rising rumors and collecting concern about the current financial well-being of EU area banks.

However, another rumor surfaced and weighed on stocks last week. It was an old concern that burdened US shares once before. The Chinese were rumored to be cutting back on European debt interests on fear that the EU credit crisis might become endemic to the region. The Chinese offered appropriate lip service to counter the rumors and protect their own interests, however, we are not so sure they are putting their money where their mouth is. Rather, we expect the Chinese are hoarding commodities, including precious metals, as global currencies seem to face an impending threat.

The week's economic data was not all that supportive either last week, as first quarter GDP growth was revised lower to +3.0%, from the previously reported 3.2% rate. What was more worrisome was that economists were looking for an increase of 3.5%. Personal spending also ceased, but we found reason to blame that on the fall of Easter, as April's data matched against stellar March growth. The week ahead should perpetuate rough trading seas, as it brings market-moving catalysts like the Employment Situation Report. Thus, you might want to check in with the Wall Street Greek blog in between martinis.

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Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

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1 Comments:

Anonymous Anonymous said...

With nation debt issues on the constant rise and GDP estimates moderate to slower growth rates ...Can we say the Dow Jones
Industrials as a worldwide benchmark (unlike the SP500) will
remain flat to rangebound for many
years to come.

12:36 PM  

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