Monday, April 18, 2016

Dow Tops 18,000. Why?

Just guessing, but the last time the Dow was trading at or above 18,000 was sometime in the summer of 2015, probably prior to August.

Be that as it may, having the Dow trading at the level it was nine months ago means that something must have been amiss, because, certainly, the indices are always rising, aren't they?

The number 18,000 poses more questions than answers, to which Money Daily offers none, only more questions as to the sustainability of such an awesome, inspired number, fully without any kind of fundamental support, since the quality of corporate earnings has been disintegrating at an astonishing rate.

Not only that, but the obfuscation and sheer audacity of the lies and pro forma earnings releases (as opposed to the traditionally well-favored GAAP) leads one to believe that the market has lost all bearings and is about to crash upon some unseen shoals while the cruiser's captain is nodded out, asleep at the wheel.

Alas, the market has no captain, as contrary to the desires of the Janet Yellens, Mario Draghis or even George Soroses (some kind of disease, there) of the world might think otherwise.

No, the market is a mechanism of many moving parts, and, being such, can be wound to whatever pulsation or amplitude any broken parts may render it. Make no mistake, there are many broken parts to the market, especially when it comes to equity markets, where valuations have been so absurdly distorted as to become meaningless in a value-oriented frame of mind.

Nevertheless, here we are, so break out the party hats?

Next up: the NASDAQ blasts through the 5,000 barrier.

S&P 500: 2,094.34, +13.61 (0.65%)
Dow: 18,004.16, +106.70 (0.60%)
NASDAQ: 4,960.02, +21.80 (0.44%)

Crude Oil 41.28 -1.03% Gold 1,230.30 -0.38% EUR/USD 1.1310 -0.02% 10-Yr Bond 1.77 +1.20% Corn 380.50 -0.13% Copper 2.16 -0.02% Silver 16.19 -0.36% Natural Gas 1.94 +1.84% Russell 2000 1,139.28 +0.74% VIX 13.35 -1.98% BATS 1000 20,682.61 0.00% GBP/USD 1.4290 +0.10% USD/JPY 109.1170 +0.26%

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