Thursday, May 26, 2016
"Why a flat day is good for the markets" screams the headline on Yahoo! Finance at the close of trading on Thursday.
Of course closing flat is good. Up is good, down is good, flat is good. Darn, the markets are even good when they're closed.
It's all about the narrative, with the financial media desperately trying to keep convincing an ever-shrinking number of "home-gamers" (trtaders with their own individual accounts), 401k holders, and other interested parties that the economy - and the stock market in particular - have never been better, or at least to convince themselves that they are convincing somebody.
It's a complete crock.
The global economy is, and has been, on its knees since the fall of 2008. Everything after that is a facade, made possible by trillions of dollars spent by the Federal Reserve and matching amounts of yen, yuan, euros and rupees by corresponding central banks, stock buybacks, income sheet fraud, mark-to-fantasy accounting, high valuations and the lack of any real price discovery mechanism.
It's a sham.
Central bankers are idiots who have walled themselves off from the general population and can't seem to find their way out of the boxed-in condition they've created for themselves.
So, we have Trump and Sanders (forget Clinton, she's a has-been, and a poor candidate who cannot win in a general election) vying to be the most powerful man in the world (don't tell Mario Draghi or Janet Yellen, though), an economy that can't produce nominal growth of more then two percent, stupid wars, uncontrollable mass migration, and a host of other problems.
But, a flat day is all good, all the time. Glad Yahoo Got the memo. They've been flat (or down) for a long time. Love ya some Marissa Mayer (Yahoo CEO). She's cute. She's smart. She's blonde. She's... no, don't go there.
She's an idiot, a poser, a fraud. Just take a look at Yahoo's performance since she became CEO. Courtiers to the company are looking at a take-under sometime late this year or early next. The $35-ish share price is a bit rich for their tastes. Something more like $18-24 may be more like it.
Flat Is In... Again!
S&P 500: 2,090.10, -0.44 (0.02%)
Dow: 17,828.29, -23.22 (0.13%)
NASDAQ: 4,901.77, +6.88 (0.14%)
Crude Oil 49.33 -0.46% Gold 1,220.00 -0.31% EUR/USD 1.1193 +0.31% 10-Yr Bond 1.82 -2.51% Corn 407.75 +0.74% Copper 2.10 -0.05% Silver 16.34 +0.52% Natural Gas 2.15 -1.51% Russell 2000 1,140.39 -0.06% VIX 13.67 -1.65% BATS 1000 20,677.17 0.00% GBP/USD 1.4665 -0.25% USD/JPY 109.7650 -0.39%