Monday, May 23, 2016

Stocks Finish Red As Global Economic Data Exhibits Slowdown

News out of Japan, Europe and the US put a negative spin on markets to open the week.

After the Dow closed exactly at 17,500 on Friday, there was fear that a further decline below the level - which had held for more than two months (March 17 was the last time the Dow closed under 17,500) - might trigger a more precipitous decline.

However, with bad news all around, traders figured that the Fed would have enough sense to pause on a rate hike at their June meeting.

Japan experienced deep declines in both imports and exports to major trading partners such as the USA and China. It was the seventh consecutive monthly decline in exports from Japan.

Europe's Manufacturing PMI was below estimates; the US had similar results, with the lowest Markit Manufacturing PMI (50.5) since the financial crisis in 2009.

Stock traders put on a stern face, keeping the major averages in the green most of the day, but stocks slumped in he final hour of trading, with all three majors losing ground.

Now, it appears that not only is the Federal reserve intent on raising rates sooner rather than later, but it is also becoming crystal clear that the general global economy is ailing as well and may be approaching recessionary levels.

This is not exactly how the masters of the universe wanted to start the week, though they have nobody except themselves to blame for whatever erosion of the global economy and their precious stock certificates occurs in coming months.

Stormy Monday:
S&P 500: 2,048.04, -4.28 (0.21%)
Dow: 17,492.93, -8.01 (0.05%)
NASDAQ: 4,765.78, -3.78 (0.08%)

Crude Oil 48.12 -0.60% Gold 1,249.50 -0.27% EUR/USD 1.1222 +0.03% 10-Yr Bond 1.84 -0.59% Corn 397.75 +0.82% Copper 2.06 +0.02% Silver 16.41 -0.77% Natural Gas 2.06 +0.05% Russell 2000 1,111.37 -0.08% VIX 15.82 +4.08% BATS 1000 20,677.17 0.00% GBP/USD 1.4484 -0.16% USD/JPY 109.2430 -0.81%

Friday, May 20, 2016

THE FRAUD IS COMPLETE: Dow Closes Exactly At 17,500

Wowsers! Those agents of the Federal Reserve really know how to put markets in a fix of a fix of a fix.

Best to ignore them, if one knows what's good for oneself, because they are pernicious, pecuniary, petty imbeciles who share a false belief that they can control all markets.

And there's the rub. They do. They can. Governments allow them, or, rather, governments are bought and sold by them.

Current economics more resembles a Kafka-esque dystopian parallel universe or perhaps the totalitarian nightmare of George Orwell's 1984 (you'll have to look that one up for yourself, grasshopper), than orderly markets relying on simple supply and demand dictates.

It is one thing to complain. Another would be to change.

More to follow...

On the day:
S&P 500: 2,052.32, +12.28 (0.60%)
Dow: 17,500.94, +65.54 (0.38%)
NASDAQ: 4,769.56, +57.03 (1.21%)

For the Week:
Dow: -34.38 (-0.20%)
S&P 500: +5.71 (0.28%)
NASDAQ: +51.88 (1.10%)


Crude Oil 48.26 -0.84% Gold 1,252.40 -0.19% EUR/USD 1.1221 -0.01% 10-Yr Bond 1.8490 +0.22% Corn 393.50 +0.90% Copper 2.06 -0.29% Silver 16.53 +0.25% Natural Gas 2.06 +0.93% Russell 2000 1,112.28 +1.60% VIX 15.20 -6.92% BATS 1000 20,677.17 0.00% GBP/USD 1.4509 +0.06% USD/JPY 110.14 0.00%

Thursday, May 19, 2016

End The Fed; Hawkish Tone Sends Dow Below Key Level; Gold, Silver Mercilessly Hammered

While it may seem nothing but a triviality, Money Daily has been following the most recent renge on the Dow Jones Industrial Average (DJIA) as it bounced its way between 17,500 and 18,000 since mid-March.

Today, the most widely-watched equity index in the world crossed below the lower end of that range, exclusively due to hawkish jawboning from various Federal Reserve operatives, who have spent the better part of the last seven years engaged in radical interest rate and money-creation policies, putting the entire global finacial system at risk.

To the uninformed masses - those 90-plus percent of the adult population who doesn't care or isn't bright enough to comprehend the ramifications of a global central banking system - life goes on. A debt-ridden, over-taxed population in the developed world plays giddily along as private banking interests push them one way or another. A few have escaped to off-the-grid lifestyles, some have prospered in the fiat money world of counterfeit currencies, but most are forced to take what is given, or rather, keep the small scraps the banks and governments leave on the floor after their orgy of inflation, deflation, false promises, fake data points and market mayhem and manipulation.

Thanks to the Fed and their fellow central bankers in Japan, Europe, and now China, the global population is left without price discovery mechanisms which make $30,000 cars with seven-year payment plans sound "affordable", homes which have skyrocketed in value due to artificially-low mortgage rates, fuel prices that are anything but transparent and/or stable and a general climate that continues to be counter to general principles of economy and thrift.

The Fed (and their central banker brethren) is pernicious, malevolent, deceitful, dishonest, greedy and carnivorous. They seek nothing but complete dominance without competition, a monopoly on the medium of exchange. Governments are more than willing to accept their bribery and thievery in order to retain feigned positions of power, selling out their constituents with nary a care toward the ultimate consequences of their actions.

Mandated to enact policies that promote full employment and stable prices, the Fed openly does neither, or, at best, adheres to their promises only as occasion allows, in fact promoting an inflation rate of two percent per year, which is anything but stable for prices.

So intent is the Fed on controlling every last aspect of financial activity, that they have undermined the best open markets of the world, in bonds, stocks, commodities and anything else they can get their greedy hands upon.

Markets no longer move on supply and demand or fundamental forces, but are solely and completely tethered to proclamations and idle talk of agents of the Federal Reserve, the Bank of Japan (BOJ), the People's Bank of China (PBOC), and the European Central Bank (ECB).

It's all rigged, all the time and readers are urged to do their own research into financial matters. Unless and until the fraud of banks and the agents of the Fed and other central banks are brought entirely to light there will be no financial freedom, only crony capitalism, fascist rhetoric and insane, unbalanced economic polices.

May the Farce Be With You:

S&P 500: 2,040.04, -7.59 (0.37%)
Dow: 17,435.40, -91.22 (0.52%)
NASDAQ: 4,712.53, -26.59 (0.56%)

Crude Oil 48.68 -0.20% Gold 1,255.70 -1.47% EUR/USD 1.1203 -0.12% 10-Yr Bond 1.85 -1.86% Corn 390.00 -2.38% Copper 2.07 -0.63% Silver 16.51 -3.63% Natural Gas 2.04 +1.75% Russell 2000 1,094.78 -0.74% VIX 16.33 +2.38% BATS 1000 20,677.17 0.00% GBP/USD 1.4609 +0.09% USD/JPY 109.9550 -0.20%

Wednesday, May 18, 2016

Fed Jawboning Flattens Stocks, Boosts Dollar, Sends Treasury Yields Soaring

Hearing all this Fed-speak, one might pine for the days of old, when central bankers were seen and not heard, when their meetings were the stuff of secrets and rituals and transparency was reserved for a type of adhesive tape.

The current roster of the federal reserve is a lineup of chattering old men and women more suited for a Sunday festival than the stuff of high finance.

Regardless of one's opinion of the federal reserve, one thing is certain: they have Wall Street on edge. With the release of the minutes from April's FOMC fiasco, the dollar surged - in the main against the yen and euro - stocks tanked back to break-even for the day and the 10-year note yield shot up like a rocket, ending the day at 1.88%, a move of nearly seven percent.

Oil and PMs fell, as planned. It's ridiculous.

S&P 500: 2,047.63, +0.42 (0.02%)
Dow: 17,526.62, -3.36 (0.02%)
NASDAQ: 4,739.12, +23.39 (0.50%)

Crude Oil 48.40 -1.20% Gold 1,259.50 -1.36% EUR/USD 1.1217 -0.84% 10-Yr Bond 1.88 +6.88% Corn 399.50 +0.63% Copper 2.06 -1.17% Silver 16.92 -1.88% Natural Gas 2.01 -2.05% Russell 2000 1,102.95 +0.48% VIX 15.95 +2.44% BATS 1000 20,677.17 0.00% GBP/USD 1.4597 +0.94% USD/JPY 110.1950 +0.96%

Tuesday, May 17, 2016

Markets Continue To Not Make Sense

Up yesterday, down today.

Anybody not seeing a pattern here. Today's dipsy-doodle was assigned to a couple of Fed yakkers telling the market that a June rate hike might be in play.

So, is the market calling the Fed's bluff? Or, is it the other way around?

Your guess is as good as anyone's.

Tuesday's Trauma:
S&P 500: 2,047.21, -19.45 (0.94%)
Dow: 17,529.98, -180.73 (1.02%)
NASDAQ: 4,715.73, -59.73 (1.25%)

Crude Oil 48.53 +0.46% Gold 1,281.20 +0.34% EUR/USD 1.1312 0.00% 10-Yr Bond 1.76 +0.34% Corn 397.25 +0.06% Copper 2.10 +0.31% Silver 17.30 +0.26% Natural Gas 2.05 +0.29% Russell 2000 1,097.68 -1.66% VIX 15.57 +6.06% BATS 1000 20,677.17 0.00% GBP/USD 1.4453 -0.05% USD/JPY 109.1400 0.00%