The Dow (DIA), Nasdaq (QQQ) and S&P 500 (SPY) have all made impressive gains from their lows last summer, but these gains were made during a time of unstable economic growth and cannot be maintained.

The factors are not all in place for sustained economic expansion. The December jobs report failed to provide any traction in trading on Friday. In fact, the whole week was unimpressive. Yes, the QQQ was up 3.5% for the week, gapping up from last week and last year’s close, but volume was off. Investors are wary of global economic events. Europe is in the forefront of everyone’s mind. Two questions being asked by investors and traders; How bad will Europe’s debt troubles get? How will the US be affected? We have yet to find out. The estimates for 2012 are for 2.3% growth, only slightly better than 2011′s 1.8%. Unemployment is expected to remain above 8.5% into 2013. I think it is overly optimistic to expect any real increase of the Nasdaq market value. Events in the Eurozone are still unfolding and are expected to last through 2012. China is slowing by at least a half percent this year. In an article published by Voice of America, China’s State Council estimates the country will grow about 8.5% this year, down from 2010′s 9%. PIMCO has estimated China’s growth at 7.5%. Banks around the world have been bracing for this contraction for months, cutting jobs across the region. India is being hit particularly hard by this trend.To continue reading, click here.