Friday Radio Rallies & Reversals

North American stocks began today on a relatively flat note, even after an upbeat report on U.S. payrolls for October.
The Dow Jones industrial average is at 11,433. The S&P 500 rose is at 1223. In Canada, the S&P/TSX is up about 1/2% to 12,950.
Despite the lack of movement in the United States, some financial stocks were strong following a report that the Federal Reserve might allow some of the healthier firms to start raising their dividends. In Canada, Manulife rose 4.9 per cent, continuing an impressive rebound that began on Thursday when the life insurer reported a smaller-than-expected quarterly loss.


Credit Suisse believes that the FED has effectively committed to purchasing assets until inflation returns to its target range of 1.5% to 2%. This would require growth of at least 4% over the next few years, and so QE will have to be topped up to the tune of $500-$700 billion.

Bottom line: According to Credit Suisse stay overweight stocks. To all you momentum investors out there I say - the force is with you. Otherwise, the technicals would suggest we are overbought and wait for a near-term pull-back.