Marching to Europe's Drumbeat

George Brooks |

Wall StreetBrooksie's Daily Stock Market blog

Friday, August 12, 2011    9:10 am EDT

DJIA: 11,143    
S&P 500:

Yesterday’s “Selling Climax Possible – Friday-Monday”  will most likely have to wait. Prior to yesterday’s open the U.S. stock-index futures were up sharply, but plunged sharply after the Jobless Claims report.  No sooner had I released my blog shortly after 9:00 am then news of a  key Euro meeting in Brussels Tuesday was announced and the futures soared.

It looked like we were on the verge of an air-clearing selling climax, and may well be before this decline is over.

Our problems are primarily European, but we have enough here at home to create enough uncertainty to temper the kind of aggressive buying  that runs the stock market back to 2011 highs.

The economy needs a boost, but the question is, where can it come from ?

Our government is locked in paralysis with a focus on debt reduction.  That is good for solvency in the future but translates into less government spending near-term, ergo a damper on the economy.

The Fed has set the stage for QE3, but QE2 fell short of its goals.

Marching to Europe’s drumbeat is a tough one, even for analysts specializing in that area.

We can get a sharp Euro-news rally out of this, but I think the upside is limited to DJIA 11,495 (S&P 500: 1209).  A break below August 9 lows (DJIA:10,588, S&P 500: 1101) is still possible.

George Brooks


The writer of Brooksie’s Daily Stock Market blog, George Brooks,  is not registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole
basis for any investment decision. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk





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