Wednesday, October 12, 2011

Not Out Of The Woods Yet.

The Futures are up. European markets are up and yet it does not feel like we have reached the bottom.
let us consider the following news items;
Aluminium company Alcoa opened the US corporate earnings season with disappointing results for the third quarter, reporting profits below consensus expectations, the FT reports. Earnings per share were 15 cents for the third quarter,

European authorities plan to set a higher than expected capital threshold for the region’s banks and give them six to nine months to achieve that level or face government recapitalisations under the auspices of the eurozone’s €440bn rescue fund,

A bill that aims to punish Beijing for holding down its currency passed the Senate on Tuesday despite a warning from China that the legislation could plunge the global economy into a 1930s-like depression,

Slovakia’s government became the first in the eurozone to fall over opposition to expanding the European financial stability fund when just 55 of the parliament’s 150 MPs voted in favour of the measure,

Paulson & Co, the giant US hedge fund run by billionaire investor John Paulson, has warned that in a “worst case” scenario, it could suffer redemptions equivalent to between a fifth and a quarter of its assets by the end of the year,

I think till uncle Ben comes up with QE 3 or whatever number, we shall see renewed weakness. Time is not right to invest. I think the rally is just a bounce and the bears are not done yet.