European Stocks Are the Bogeyman Today

 | Jan 24, 2012 | 7:20 AM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:








Oh yeah, they trade stocks over there, too, not just bonds. And the stocks are up huge, even as they shouldn't be. That's how I felt after looking at the warning from Siemens (SI), the dismal results from Ericsson (ERIC) and the estimate cuts from Nokia (NOK).

The Europeans are getting their butts kicked as they muddle through the euro-debt crisis, as there's been little thought given to growth and all of the concentration is on German-demanded austerity.

So there are points to be given up.

We could easily use Europe as the reason for a selloff today. We haven't had a selloff in ages and we haven't had anything euro-driven since the beginning of the year when either the bears from across the ocean stopped crossing or they went into hibernation. It's been remarkable how the whole "risk-on/risk-off" mob left the building at precisely the moment when that ETF was created to trade risk-on/risk-off, the exact phenomenon we see with most ETFs, created at the top when they are least needed.

They are rarely criticized though because ETFs are in some sort of holy pantheon that allows you to create anything you want.


But then again, I don't derive any money from them so I can afford to be honest. Everyone else I know is in the great ETF land grab and intellectual honesty's too expensive.

Hey, you have to make a living more substantial than everyone else save Romney, don't you?

But today could be the day where we think, hmm, the world is slowing and we have been bidding up industrial stocks for ages.

Today's the day we have to watch the levitating cyclicals, up some 35% from the bottom with barely a breather.

Do you buy puts on Caterpillar (CAT)? I bet it opens down too much to get them off.

So, Europe's back in the form of corporate news, and while not as threatening as prospective SocGen defaults or Italian failed auctions, nonetheless the market's not ready for it.

The price must be paid.

Columnist Conversations

this stock is showing great relative strength today, superior volume and strong price action. BOUGHT ...
If we can answer that question above we will know when this market finally corrects. The Dippers showed up aga...
If GM goes ahead with borrowing an additional $3 billion to fund the pensions... 1)  They will be tran...
I see many people negative on Nasdaq and the FANG stocks today. I have written about these stocks quite often ...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.