1. S & P 500 Closes Above its 200 Day Moving Average: The S & P 500 average closed above its 200 day moving average yesterday for the first time since December 2007. S&P 500 INDEX,RTH Index Chart - Ya Fin
2. CHINA PMI: China's Purchasing Manager's Index stayed above 50, indicating expansion for the third consecutive month. WSJ.com
The ISM reading for U.S. manufacturing still shows contraction at 42.8, though that was the highest reading in that index since last September.
3. David Rosenberg Spreads More Doom and Gloom on Fast Money: Rosenberg continues to try and spread doom and gloom with his appearance yesterday on Fast Money, Street He believes that the current rally is ignoring the continued deterioration in the economy, and is disconnected from the realities of the economy, driven by underinvested institutions. He downplayed the ISM report without mentioning that the new order component crossed the 50 barrier last month, an important fact. Some Signs of Light at the End of the Tunnel: End of the Recession? He wants to focus on current unemployment, a lagging indicator, and apparently dismisses the claim by fellow economist Robert Gordon that the claims for unemployment have probably peaked, with that indicator being a good predictor in the past of an end to a recession. vox
He also wants to maintain that it really does not matter what is happening in manufacturing since this recession was not induced by a contraction in manufacturing but by a credit crunch. True enough, as far as it goes, but then again, when was the last time the Fed replaced the trillions that went up in smoke, burned to a crisp by the Masters of Disaster, ensconced in money heaven except for the hundreds of millions paid to the Masters for their financial wizardry, with even more trillions?
Alan Abelson, always looking to confirm a pessimistic outlook, which must have been ordained for him at birth by the Lord, featured Rosenberg in this week's Barron's. So far, Rosenberg's prediction of a 2% 10 year treasury and 450 on the S & P 500 does not look so hot. (item # 2 Afternoon Comments after Digesting the Saturday Papers/ How reasonable is a prediction of a 2% 10 year treasury yield and 475 on the S & P 500) Maybe Alan needs to bring back David Levy to commiserate with him Barrons.com or Felix Zulauf may even be better to perk up Alan's spirits by predicting a slide to S & P 450 too. Buy of 50 MJH at $7.51/ Pop in My Animal Spirits Balloon/Japan/ Zulauf/CNBC/Meet the Press
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