In case you missed it, here’s a summary of the ETF topics and market reviews I posted to my blog during the week ending on 8/12/2012.
In one of the lowest volume weeks in some five years, the S&P 500 managed to eke out another gain of 1%. This lack of participation makes it very easy to distort true market direction, especially as global economic news continues to be ignored.
With just about all of Europe on vacation, the predominant thought of Wall Street traders is the next move by the ECB, and it is expected to be a big one, which is necessary to justify current market levels.
Based on history, the ECB may not pull out the widely expected ‘bazooka’ after all to solve the ever worsening European debt crisis, as is its weapon of last reserve may only be a water pistol; or worse, it may have been just empty jawboning.
If so, the markets will not take too kindly to a ‘non-solution,’ which will bring the downside into play again, especially after the S&P 500 has now produced 6 up days in a row on nothing but hope for more stimulus.
Over past week, we covered the following: