November 10, 2011 at 09:30 AM EST
Europe Is Still Wagging Global Markets!
Thursday, November 10, 2011. 9.25 a.m. Last week it was Greece, and the on, and off, and back on again, resignation of Prime Minister Papandreou that had global markets rocking up and down on a daily basis. This week it’s Italy, and the on, and off, and back on again, resignation of Prime Minister Berlusconi [...]

Thursday, November 10, 2011. 9.25 a.m.

Last week it was Greece, and the on, and off, and back on again, resignation of Prime Minister Papandreou that had global markets rocking up and down on a daily basis.

This week it’s Italy, and the on, and off, and back on again, resignation of Prime Minister Berlusconi that has markets on a yoyo string.

So the Dow’s new rally high early last week gave way to a sharp plunge to end the week, and then the sharp relief rally Monday and Tuesday almost back to the previous high was followed by yesterday’s plunge back down almost to last week’s low.

And now, based on the new reports from Europe this morning that Berlusconi will resign immediately after all, the pre-open indicators are calling for a positive market at least at the open today.

But that short-term overbought condition above 50-day moving averages may also still have an influence.

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Meanwhile, it continues to make it difficult for the recent encouraging U.S. economic reports to shine through the European clouds of darkness.

To read my newspaper column of last weekend ‘The Entire Global Economy Is At the Mercy of Tiny Greece?’ click here!

Subscribers to Street Smart Report: In addition to the charts and signals in the ‘premium content’ area of the blog this morning, the new issue of the newsletter is on the Street Smart Report website for you from yesterday.

Yesterday in the U.S. Market.

An ugly day. Down all day. The market did close off its lows but that’s not saying much. The Dow was down as much as 435 points, and closed down 389 points. But there wasn’t a lot of panic selling. Volume picked up some but only to 1.1 billion shares traded on the NYSE.

The Dow closed down 389 points, or 3.2%. The S&P 500 closed down 3.7%. The NYSE Composite closed down 4.2%. The Nasdaq closed down 3.9%. The Nasdaq 100 closed down 3.6%. The Russell 2000 closed down 4.8%. The DJ Transportation Avg. closed down 3.8%. The DJ Utilities Avg closed down 2.3%.

Gold closed down $24 an ounce at $1,774.

Oil closed down $0.88 a barrel at $95.92.

The U.S. dollar etf UUP closed up 1.8%.

The U.S. Treasury bond etf TLT closed up 2.1%.

Yesterday in European Markets.

Markets in Europe also closed down sharply yesterday. London closed down 1.9%. The German DAX closed down 2.2%. France closed down 2,2%.

Asian Markets Were Up Tuesday Night But Down Last Night.

On Tuesday night Asian markets closed up taking their cue from the U.S. market’s rally on Tuesday on news that Italian Prime Minister had agreed to resign. But last night it reversed as did the U.S. market yesterday, closing down sharply on the sharp spike-up in Italian bond yields on later news that the government change would not take place until after new elections can take place in a few months. (That has changed again this morning with reports the Prime Minister will resign immediately).   

The DJ Asia-Pacific Index closed down a big 3.0% last night.

Among individual markets:

Australia closed down 2.2%. China closed down 1.8%. Hong Kong plunged 5.2%. India closed down 1.2%. Indonesia closed down 1.9%. Japan closed down 2.9%. Malaysia closed down 1.1%. New Zealand closed down 1.0%. South Korea closed down 4.9%. Singapore closed down 2.5%. Taiwan closed down 3.4%. Thailand closed up 0.1%.

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Markets This Morning.

European markets are back to the upside this morning. The London FTSE is up 0.5%. Germany’s DAX is up 1.4%. France’s CAC is up 1.0%.

Oil is up $1.52 a barrel at $97.26.

Gold is up $5 an ounce at $1,773 an ounce.

This morning in the U.S. Market:

This week will see very few important potential market-moving economic reports, almost none. To see the schedule of the week’s reports click here, and look at the left side of the page it takes you to.

Tuesday’s report was that the NFIB’s Small Business Optimism Index rose to 90.2 in October from 88.9 in September. That’s slightly above its average level since January 2009.

There were no key reports yesterday.

This morning’s reports were that the U.S. Trade deficit narrowed by 4% in September, better than forecasts. And new weekly unemployment claims fell 10,000 last week to 390,000, also better than forecasts. And Import Prices declined 0.6% in October, also better than forecasts and the biggest decline in 4 months.

Our pre-open indicators were already somewhat positive in reaction  to reports that the Prime Minister of Italy will resign right away after all, and have improved more since the economic reports.

Our Pre-Open Indicators:

Our pre-open indicators are pointing to the Dow being up 120 points or so in the early going.

To read my newspaper column of last weekend ‘The Entire Global Economy Is At the Mercy of Tiny Greece?’ click here!

Subscribers to Street Smart Report: In addition to the charts and signals in the ‘premium content’ area of the blog this morning, the new issue of the newsletter is on the Street Smart Report website for you from yesterday.

Non-subscribers: How are you doing? We can help, and at very reasonable cost! Street Smart Report Online provides an 8-page newsletter every 3 weeks, an in-depth 6 page interim update every Wednesday on our intermediate-term signals and recommended holdings, an in-depth 4-page ‘Gold, Bonds, Dollar’ update every 2 weeks, and special reports and hotline updates as needed. Sectors, stocks, bonds, gold, short-sales, long-side and inverse etf’s and mutual funds. Highly regarded and in its 23nd year. As a bonus for a one-year subscription you will also receive my latest book Beat the Market the Easy Way- Proven Seasonal Strategies That Double the Market’s Performance. Click here for subscription information.

I’ll be back Saturday morning with the regular Saturday morning post, as usual later than the week-day posts, probably around 11 a.m. (This blog appears every Tuesday, Thursday, and Saturday morning!).

**** End of Today’s post*****

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