reuters
Posted on 02/14/2011 10:15:59 AM PST by NormsRevenge
NEW YORK (Reuters) – U.S. stocks were little changed on Monday as another day of persistently below-average volume suggested investors weren't willing to chase gains that carried stocks to 2 1/2-year highs last week.
Equities were coming off two straight weeks of gains, although light trading volume undercut the bullish sentiment.
"We've been setting new highs on low volume, which suggests the rally is on thin ice," said Tom Mangan, a portfolio manager who helps oversee $2.4 billion at James Investment Research Inc in Xenia, Ohio. He said a correction was likely.
President Barack Obama proposed a federal budget that would cut the U.S. deficit by $1.1 trillion over the next 10 years. Congress must approve the plan, and Republicans, who are in the majority in the House, said it did not curb spending enough.
"A (market) correction could come on negotiations over the budget if there's a fear of a government shutdown," Mangan said.
The S&P 500 has gained nearly 13 percent since the start of December, helped by strong corporate results and the recent resignation of Egyptian President Hosni Mubarak, which eased some of the tensions around the region for now.
Some traders said they still see residual strength in the market, with investors willing to buy on any decrease in prices.
"The 'buy the dip' mentality is certainly the trend that we've seen over the last couple of weeks," said Ryan Larson, head of equity trading at RBC Global Asset Management in Chicago. "We will probably look for that to carry through."
(Excerpt) Read more at news.yahoo.com ...
Opines?
What say ye?
Correction imminent? How small or hugh ?
Obammy’s fate rests on a growing robust economy.
reuters
Doesn’t matter any more. As we all can see, the fate of the stock market has little bearing on the actual health of the economy.
The New York Stock Exchange is seen February 9, 2011. Germany's Deutsche Boerse is in advanced talks to buy NYSE Euronext to create the world's largest trading powerhouse, marking the second major trans-Atlantic deal in 24 hours in a massive shake-up of an industry under pressure from upstart rivals. REUTERS/Eric Thayer
The trading floor of the Frankfurt stock exchange, in a file photo. REUTERS/Kai Pfaffenbach
The market has been artificially puffed up with printed funny money from the Fed.
It is not functioning under real-world conditions.
What is predictable is the fact that the National Debt is approaching 14.3 Trillion, The Federal Budget is 3.7 Trillion, (More to be added after they spend that much in 2 months) Inflation is rapidly adding to that deficit, the Federal Reserve is creating money that does not exist out of thin air and is loaning it the United States Treasury, so they can print worthless paper to repay our foreign debtors with.
China and other better managed countries are now discussing dropping the dollar as the Reserve Currency and forming a new Reserve Currency.
Other than that, things are just humming along!
Don’t be silly.
The Market always goes up.
Good news - markets up.
Bad news - markets up.
It is all driven by Bernake’s printing press. The public has no clue what is going on.
I hope the Germans take over the NYSE. They are less corrupt and did a good job running NASA.
Maybe they see the QE2 writing on the wall ,, new oversight might stop the cash flowing in to puff the market up..
I do not post often, but... prudence is warranted here.
I would be seller. If you have doubled your money, sell into the rallies. Not ALL, BUT AT LEAST 1/2. Greed kills all investors.
Regards, Doodle
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