It wasn’t quite a QE III but it came close. This week the Federal Reserve Bank extended the time period in which they would keep a lid on short term interest rates to 2014 while at the same time pushing longer term rates lower. Investors liked that and bought stocks on the news.

Problems, issues, challenges, call them what you may.  Nary a day has gone by when something, somewhere continues to put investors on edge. From the Straits of Hormuz to the infidelities of Republican hopefuls, the world appears to be full of surprises. Yet, the stock markets grind higher.

 After a week of slowly grinding higher on exceptionally low volume, the markets swooned on Friday. Europe, once again, was responsible.

All week stock averages fluctuated, usually down in the mornings and popping up to moderate gains in the afternoon. This slow grind upward however, is largely dependent on what happens next in Europe.  So far there hasn’t been any thing new but that could change as Europe gets back in business after their long holiday [...]

 The dividing line that often separates bull from bear is the 200 day Moving Average (200 DMA). It is a technical term that tracks the moving average price of stocks over 200 days. All week equities have traded a little above or below that average, leaving investors uncertain of what awaits them in 2012.

Christmas is here and the market action this week indicates the traditional end of the year rally appears ready to begin. About the best one can say is at least we can count on Santa if not anyone else.

Most years, at about this time, investors begin to anticipate a so-called “Christmas Rally”. So far investors have received nothing but coal in their stockings. I counsel patience. Most investors appear to be jumping the gun.

How many times in the past year have we been faced with binary events that were either “do or die” moments for the markets? Some turned out to be “dos” but others definitely failed to meet investors’ expectations. Yet, armageddon did not occur.

It was the week that was. The stock market regained practically all of its losses of the last three weeks and then some. If you were not already invested, you missed the move. But don’t fret, I think there is more upside in the weeks ahead.

Global Investors are convinced that unless something changes and soon, the Euro and the nations that use it are toast. They are exerting as much selling pressure as possible on worldwide markets to force those changes.  So far all it has done is make us all poorer.