Noting that markets are in a near-trance module of late (thank you, Janet Yellen and central bankers everywhere), it has occurred to financial followers that possibly one could track the big movers of the day in an effort to ferret out any semblance of a pattern in the current conundrum.
With that, taken from the list below are the (un)usual suspects, the venerable VIX, which moved up by 3.39% on the session, and natty natural gas, ahead by 2.71%.
Actually, these moves tells nobody nothing (or, perhaps, everybody everything they need to know), since the VIX, a supposed measure of volatility, moved in such a manner as to suggest, well, volatility, when none existed.
As for natural gas, the price alone dictates large moves in percentage terms. With the price generally below two dollars for the past two years, a twenty-cent move is automatically good for 10%. Thus, today's gain of 2.71% was the result of a price move of roughly five cents. So, just because it is expected to be a little cooler than normal in Nashua, NH, next week, it does not automatically imply that the price of natural gas will be necessarily higher, nor does it mean that the price will stay there for any reasonable expectation of time.
Thus, the discovery du jour isn't so much based on any magic or even logical formula, but simple understanding of markets and central bank control through various proxies: markets are in a semi-permanent state of broken, and there's little any concerted effort by any group of individuals, investors, or fund managers can do about it. A volatility index moves when there is no volatility present, and a five-cent move in the price of natural gas won't set the commodity world afire.
In just a few words, these are not real markets, and you only need to have your eyes open to realize that.
Today's Laughable, Lamentable Louse:
S&P 500: 2,037.05, +1.11 (0.05%)
Dow: 17,535.39, +19.66 (0.11%)
NASDAQ: 4,766.79, -6.72 (0.14%)
Crude Oil 39.39 -0.18% Gold 1,220.10 -0.12% EUR/USD 1.1196 +0.28% 10-Yr Bond 1.87 -1.58% Corn 371.25 +0.34% Copper 2.24 +0.63% Silver 15.20 +0.01% Natural Gas 1.93 +2.71% Russell 2000 1,080.23 +0.06% VIX 15.24 +3.39% BATS 1000 20,682.61 0.00% GBP/USD 1.4255 +0.92% USD/JPY 113.3830 +0.08%
Showing posts with label Natural Gas. Show all posts
Showing posts with label Natural Gas. Show all posts
Monday, March 28, 2016
Wednesday, December 30, 2015
Doubtful That Stocks Will Post Gains for 2015
Stocks took a nosedive into the close, with the three major indices closing at the lows of the session.
More than likely, traders are taking whatever they've made and walking away, as there is only one more day left to buy, sell or hold in 2015.
Crude got hit again and should test the December lows once January commences and the realization that global GDP is going to come in at under two percent or thereabouts for the year. As mentioned earlier, US fourth quarter GDP - which will be first estimated nearing the end of January - will have to measure in the range of 2.8%, which will be a real stretch, as holiday sales have not been very robust and housing - as evidenced again by pending home sales in November, came in at -0.9%, well below already tame estimates of a gain of 0.5%.
Crude Oil closed at 36.65, down 3.22%; Gold and silver were ambushed once more by the global cartel and the ten-year note finished just about where it did yesterday,yielding 2.30%, a pretty good jump of 7-8 pips from the close on Monday.
Natural Gas ended at 2.22, off 6.41%, after a big run-up based upon projections of a colder January for the Northeast via a European model. NOAA's three-month forecast for January-March remains unchanged, showing a warmer than normal winter for much of the Northeast and Midwest. So much for the rapid rise off generational lows. Like oil, there's an absolute glut of Nat Gas, a positive boost for consumers. Storage facilities in the Northeast are near record capacities.
If history is any guide, consumers will continue paying down debt if oil, automotive fuel and natural gas continue to trade at lowered levels. Wall Street may like like the idea, but Main Street is relishing the break from a near-decade of high prices.
Outside of the insanity that is the NASDAQ, a loser close on the S&P will send 2015 investors home flat or losers on the annum. The Dow looks to have no chance to finish in the black for the year.
Here are closing prices at the end of 2014:
S&P: 2,058.90
Dow: 17,823.07
NASDAQ: 4,736.05
Wednesday's closing prices:
S&P 500: 2,063.36, -15.00 (0.72%)
Dow, 17,603.87: -117.11 (0.66%)
NASDAQ, 5,065.85: -42.09 (0.82%)
It's not looking very pretty and January appears to be setting up for a dramatic sell-off.
Tomorrow: Money Daily's Forecasts for 2016
More than likely, traders are taking whatever they've made and walking away, as there is only one more day left to buy, sell or hold in 2015.
Crude got hit again and should test the December lows once January commences and the realization that global GDP is going to come in at under two percent or thereabouts for the year. As mentioned earlier, US fourth quarter GDP - which will be first estimated nearing the end of January - will have to measure in the range of 2.8%, which will be a real stretch, as holiday sales have not been very robust and housing - as evidenced again by pending home sales in November, came in at -0.9%, well below already tame estimates of a gain of 0.5%.
Crude Oil closed at 36.65, down 3.22%; Gold and silver were ambushed once more by the global cartel and the ten-year note finished just about where it did yesterday,yielding 2.30%, a pretty good jump of 7-8 pips from the close on Monday.
Natural Gas ended at 2.22, off 6.41%, after a big run-up based upon projections of a colder January for the Northeast via a European model. NOAA's three-month forecast for January-March remains unchanged, showing a warmer than normal winter for much of the Northeast and Midwest. So much for the rapid rise off generational lows. Like oil, there's an absolute glut of Nat Gas, a positive boost for consumers. Storage facilities in the Northeast are near record capacities.
If history is any guide, consumers will continue paying down debt if oil, automotive fuel and natural gas continue to trade at lowered levels. Wall Street may like like the idea, but Main Street is relishing the break from a near-decade of high prices.
Outside of the insanity that is the NASDAQ, a loser close on the S&P will send 2015 investors home flat or losers on the annum. The Dow looks to have no chance to finish in the black for the year.
Here are closing prices at the end of 2014:
S&P: 2,058.90
Dow: 17,823.07
NASDAQ: 4,736.05
Wednesday's closing prices:
S&P 500: 2,063.36, -15.00 (0.72%)
Dow, 17,603.87: -117.11 (0.66%)
NASDAQ, 5,065.85: -42.09 (0.82%)
It's not looking very pretty and January appears to be setting up for a dramatic sell-off.
Tomorrow: Money Daily's Forecasts for 2016
Tuesday, January 5, 2010
Factory Orders Up; Pending Hone Sales Down
The headline explains quite a bit. The manufacturing sector continues to churn, though at unimpressive levels, and the housing market continues to slump. Factory orders were up 1.1% in November, after posting a gain of 0.8% in October. Pending hone sales were down 16% in November, as compared to October. While that may be seen as the result of the expiring of the new buyer tax credit, that excuse has begun to wear thin. Foreclosures are still at or near record highs, and, with unemployment hovering around 10%, aren't expected to drop off any time soon.
The housing market in the United states is still a shambles and any efforts to revive it, other than plain, ordinary waiting it out, are likely to fail. There are more than enough residential properties on the market for the scarce number of available buyers. Simple supply and demand math are all one needs to know about real estate from now until 2012. If you're thinking of buying, offer less, or buy something reasonable, to live in, not as an investment.
Stocks zig-zagged all day with the Dow remaining underwater for the entire session. The range was very narrow as investors showed a bit of caution after yesterday's blow-off, start-of-the-year rally. Stocks don't appear to be cheap anymore, and some of them don't look like solid investments, either. Cash remains king and when put to its proper use, can produce solid assets. In the current low-inflation (some dare call it deflation) environment, actual money is a rather useful, fluid thing, and Americans are finding out that there are bargains both to be had and sold. It's a good time to be frugal, or so it seems, and that would imply that it's not a good time to be in stocks, which are, by their nature, speculative.
Dow 10,572.02, -11.94 (0.11%)
Nasdaq 2,308.71. +0.29 (0.01%)
S&P 500 1,136.52. +3.53 (0.31%)
NYSE Composite 7,354.87, +28.13 (0.38%)
Interestingly enough, today's market moves were broad-based and on solid volume. Advancers outnumbered decliners, 3575-2976, wit the bulk of the gains on the NYSE. New highs appear to be peaking, at 754 today, as compared to 76 new lows.
NYSE Volume 5,687,644,500
Nasdaq Volume 2,395,510,250
Commodities were almost universally higher, with the notable exception of natural gas (somebody must have taken my post from yesterday to heart), down 25 cents. Oil priced at a 15-month high for the second straight day, reaching $81.77 on a gain of 26 cents. Gold continued to rebound, though up just 20 cents, to $1,118.50. Silver was the big winner on the day, gaining 34 cents to reach $17.80.
Stock remain in a very measured upward range, and while many commentators are expecting the rally to run out of steam (self included), it hasn't happened yet. The next likely move should occur during the hullabaloo over earnings, which will commence earnestly next week. Those not wishing to wait for Alcoa (AA) to officially kick off earnings season on Monday might get a clue from Monsanto (MON), which reports tomorrow.
The housing market in the United states is still a shambles and any efforts to revive it, other than plain, ordinary waiting it out, are likely to fail. There are more than enough residential properties on the market for the scarce number of available buyers. Simple supply and demand math are all one needs to know about real estate from now until 2012. If you're thinking of buying, offer less, or buy something reasonable, to live in, not as an investment.
Stocks zig-zagged all day with the Dow remaining underwater for the entire session. The range was very narrow as investors showed a bit of caution after yesterday's blow-off, start-of-the-year rally. Stocks don't appear to be cheap anymore, and some of them don't look like solid investments, either. Cash remains king and when put to its proper use, can produce solid assets. In the current low-inflation (some dare call it deflation) environment, actual money is a rather useful, fluid thing, and Americans are finding out that there are bargains both to be had and sold. It's a good time to be frugal, or so it seems, and that would imply that it's not a good time to be in stocks, which are, by their nature, speculative.
Dow 10,572.02, -11.94 (0.11%)
Nasdaq 2,308.71. +0.29 (0.01%)
S&P 500 1,136.52. +3.53 (0.31%)
NYSE Composite 7,354.87, +28.13 (0.38%)
Interestingly enough, today's market moves were broad-based and on solid volume. Advancers outnumbered decliners, 3575-2976, wit the bulk of the gains on the NYSE. New highs appear to be peaking, at 754 today, as compared to 76 new lows.
NYSE Volume 5,687,644,500
Nasdaq Volume 2,395,510,250
Commodities were almost universally higher, with the notable exception of natural gas (somebody must have taken my post from yesterday to heart), down 25 cents. Oil priced at a 15-month high for the second straight day, reaching $81.77 on a gain of 26 cents. Gold continued to rebound, though up just 20 cents, to $1,118.50. Silver was the big winner on the day, gaining 34 cents to reach $17.80.
Stock remain in a very measured upward range, and while many commentators are expecting the rally to run out of steam (self included), it hasn't happened yet. The next likely move should occur during the hullabaloo over earnings, which will commence earnestly next week. Those not wishing to wait for Alcoa (AA) to officially kick off earnings season on Monday might get a clue from Monsanto (MON), which reports tomorrow.
Monday, January 4, 2010
Galloping Out of the Gate, Stocks Make New Highs
Investors were eager to put their money into equities on the first trading day of the new year, though the overall gains were compromised by two factors: first, the closing figures were only fractionally higher (on a percentage basis) than that of December 30 of last year, prior to the sell-off which occurred on the 31st; second, volume was moderate, on the low side, significant of marginal participation. There is still a ton of money (literally and figuratively) sitting out this rally. Something on the order of $4 Trillion is still nesting in money market funds, t-bills or other low-yielding assets.
Not everyone has bought into the story which Wall Street is currently spinning: that stocks are safe - and sound - investments upon which one can rest his or her fortunes. Quite simply, there were too many people burned in the Fall of 2008 through the Spring of 2009. Many smaller investors were wiped out, never to return. Others have trimmed their holdings and curtailed all but the most basic trading activity.
Lower volume levels, as compared to the go-go years of the mid-00 decade, have become the new normal, and rightfully so. Stocks, like it or not, generally do not go up 50-60% in the course of 9 months, as they did from march of '09 to the present. Anyone buying in at these levels is certainly chasing, and bound to be burned.
Even though earnings reports for the 4th quarter are due out within days, nobody is expecting miracles. Corporations have trimmed expenses to the bone, spurring profits over the past two or three quarters, but investors seek top-line growth, revenue improvements, higher margins and expansion. They're not going to get them in this current round of reports, at least not to the extent which analysts are proposing.
Unemployment and housing remain the two sticking points for the US economy. Labor markets remain the tightest in decades. Home prices are still dropping in many areas of the country as more foreclosures hit the market. Those trends see no ends, and until they are resolved - unemployment below 8% and housing prices averaging up by 2-3% per year - the recovery in the USA is going to be muted at best. Add to the woes the mess federal government has created with the continuation of tax-and-spend-and-borrow policies and you get a common recipe for stagnation.
Dow 10,583.96, +155.91 (1.50%)
Nasdaq 2,308.42, +39.27 (1.73%)
S&P 500 1,132.99, +17.89 (1.60%)
NYSE Composite 7,326.74, +141.78 (1.97%)
Advancing issues soared past decliners, 5271-1356. New highs outpaced new lows, 693-83, not surprising, and a trend that will continue due to easy comparable highs from last year. As stated at the outset, volume was sluggish, or, for lack of a better term, normal.
NYSE Volume 4,526,077,000
Nasdaq Volume 1,955,813,625
Everything else in the universe was higher on the day, including just about all commodities. Oil gained a ridiculous $2.15, closing at $81.51, it's highest price in over a month. Gold rallied an astonishing $23.30, reaching $1,119.50. Silver soared by 60 cents, to $17.45.
Possibly the most absurd trade of the day, if not the year, is in natural gas, a commodity over which the US sits a 100-year supply. The odorous stuff, which can fuel anything from entire energy plants to kiddie cars, was up a whopping 31 cents, to $5.84, it's highest price in well over a year. six months ago, natural gas was trading under $3.00 per mmbtu. Considering the extraordinary amount of proven supplies, the price should be stable, near its bottom. As usual, however, the energy moguls have captured the market and control the price as they see fit, and, like oil, yesterday's price always seems too low to them.
American consumers have been squeezed dry by escalating prices in three areas: energy, health care and taxation. The government runs one of those areas, and has its hands firmly in the pockets of the other two. If anything can bring this country's economy to its knees, it just so happens to be our very own, greedy, inept, monstrously overgrown federal government. They are strangling the middle class into third-world status.
And they'll continue to do it tomorrow and the next day and the next...
Not everyone has bought into the story which Wall Street is currently spinning: that stocks are safe - and sound - investments upon which one can rest his or her fortunes. Quite simply, there were too many people burned in the Fall of 2008 through the Spring of 2009. Many smaller investors were wiped out, never to return. Others have trimmed their holdings and curtailed all but the most basic trading activity.
Lower volume levels, as compared to the go-go years of the mid-00 decade, have become the new normal, and rightfully so. Stocks, like it or not, generally do not go up 50-60% in the course of 9 months, as they did from march of '09 to the present. Anyone buying in at these levels is certainly chasing, and bound to be burned.
Even though earnings reports for the 4th quarter are due out within days, nobody is expecting miracles. Corporations have trimmed expenses to the bone, spurring profits over the past two or three quarters, but investors seek top-line growth, revenue improvements, higher margins and expansion. They're not going to get them in this current round of reports, at least not to the extent which analysts are proposing.
Unemployment and housing remain the two sticking points for the US economy. Labor markets remain the tightest in decades. Home prices are still dropping in many areas of the country as more foreclosures hit the market. Those trends see no ends, and until they are resolved - unemployment below 8% and housing prices averaging up by 2-3% per year - the recovery in the USA is going to be muted at best. Add to the woes the mess federal government has created with the continuation of tax-and-spend-and-borrow policies and you get a common recipe for stagnation.
Dow 10,583.96, +155.91 (1.50%)
Nasdaq 2,308.42, +39.27 (1.73%)
S&P 500 1,132.99, +17.89 (1.60%)
NYSE Composite 7,326.74, +141.78 (1.97%)
Advancing issues soared past decliners, 5271-1356. New highs outpaced new lows, 693-83, not surprising, and a trend that will continue due to easy comparable highs from last year. As stated at the outset, volume was sluggish, or, for lack of a better term, normal.
NYSE Volume 4,526,077,000
Nasdaq Volume 1,955,813,625
Everything else in the universe was higher on the day, including just about all commodities. Oil gained a ridiculous $2.15, closing at $81.51, it's highest price in over a month. Gold rallied an astonishing $23.30, reaching $1,119.50. Silver soared by 60 cents, to $17.45.
Possibly the most absurd trade of the day, if not the year, is in natural gas, a commodity over which the US sits a 100-year supply. The odorous stuff, which can fuel anything from entire energy plants to kiddie cars, was up a whopping 31 cents, to $5.84, it's highest price in well over a year. six months ago, natural gas was trading under $3.00 per mmbtu. Considering the extraordinary amount of proven supplies, the price should be stable, near its bottom. As usual, however, the energy moguls have captured the market and control the price as they see fit, and, like oil, yesterday's price always seems too low to them.
American consumers have been squeezed dry by escalating prices in three areas: energy, health care and taxation. The government runs one of those areas, and has its hands firmly in the pockets of the other two. If anything can bring this country's economy to its knees, it just so happens to be our very own, greedy, inept, monstrously overgrown federal government. They are strangling the middle class into third-world status.
And they'll continue to do it tomorrow and the next day and the next...
Monday, August 24, 2009
Rally Stalls After Four Straight Up Days
Even though the Dow Jones Industrials finished with a gain, the other major indices suffered marginal losses to begin the last week of August and the unofficial end of summer. Compared to the drop last Monday, today's action was little more than profit-taking posturing and a pause prior to Tuesday's reading of durable goods orders.
There is still a good deal of trepidation in traders' hearts, and following such an impressive run last week, a break was surely in order. Along with the durable goods report for July, there's the Conference Board's consumer confidence index and the S&P/Case-Shiller Home Price Index with which to deal on Tuesday morning. That home price index has been a rally-killer in the past, though last month's data suggested that the housing market was beginning to turn around as the 10-City and 20-City Composites improved for the fourth consecutive month.
Investors, keenly aware that jobs and home-buying are two of the biggest factors in recession and recovery, will be keeping a close eye on that index as well.
Otherwise, Monday was moribund and listless, with traders going through the motions instead of staking out new positions. After a brief upsurge in the morning, stocks lost ground, tracing out the break-even line into the close. Some may have said it was hardly worth getting out of bed, though from the volume slant, most stock jockeys were at their desks bright and early.
Dow 9,509.28, +3.32 (0.03%)
NASDAQ 2,017.98, -2.92 (0.14%)
S&P 500 1,025.56, -0.57 (0.06%)
NYSE Composite 6,671.14, -5.12 (0.08%)
Declining issues held a narrow lead over advancing ones, 3276-3187, but new highs held a large edge over new lows, 227-88. Volume was solid, but uninspiring.
NYSE Volume 1,389,159,000
NASDAQ Volume 2,072,289,000
Oil continued to price higher in futures markets, up another 48 cents per barrel, to $74.37 on the NY Merc. Meanwhile, gold was taking another beating, losing $11, to close at $943.70. Silver responded positively, however slightly, up 3 cents, to $14.23 per ounce. Natural gas, trading at 7-year lows, caught a bit of a bid, though a gain to just $2.92 is still well below levels seen in recent years. The disparity between crude oil and natural gas prices is beginning to cause a stir, especially in US markets. Gas discovery and extraction has been aided by technology recently and the word is that the US is probably sitting on at least a 20 year supply - some estimates are as high as 100 years - of natural gas, causing the price to plummet.
If there is such an abundance of natural gas and crude prices remain high, it won't be long before those natural gas conversion kits for cars become all the rage. Of course, there still aren't many places where one could fill up on nat. gas., but with prices so low, don't be surprised if a number of new businesses aren't started up based on the assumption that oil will stay high and natural gas low. Maybe we should have listened to T. Boone Pickens last summer when he was saying that natural gas was the bridge between oil and renewable energy.
On the stock market, naturally, there was the usual chorus of caution from the punditry, with more than a few analysts saying the rally had run its course and it was time to take profits, take a break and get back in at lower levels in the fall. However, the camps between the naysayers and optimists were about evenly split, for varying reasons. Below, one of the more positive calls:
There is still a good deal of trepidation in traders' hearts, and following such an impressive run last week, a break was surely in order. Along with the durable goods report for July, there's the Conference Board's consumer confidence index and the S&P/Case-Shiller Home Price Index with which to deal on Tuesday morning. That home price index has been a rally-killer in the past, though last month's data suggested that the housing market was beginning to turn around as the 10-City and 20-City Composites improved for the fourth consecutive month.
Investors, keenly aware that jobs and home-buying are two of the biggest factors in recession and recovery, will be keeping a close eye on that index as well.
Otherwise, Monday was moribund and listless, with traders going through the motions instead of staking out new positions. After a brief upsurge in the morning, stocks lost ground, tracing out the break-even line into the close. Some may have said it was hardly worth getting out of bed, though from the volume slant, most stock jockeys were at their desks bright and early.
Dow 9,509.28, +3.32 (0.03%)
NASDAQ 2,017.98, -2.92 (0.14%)
S&P 500 1,025.56, -0.57 (0.06%)
NYSE Composite 6,671.14, -5.12 (0.08%)
Declining issues held a narrow lead over advancing ones, 3276-3187, but new highs held a large edge over new lows, 227-88. Volume was solid, but uninspiring.
NYSE Volume 1,389,159,000
NASDAQ Volume 2,072,289,000
Oil continued to price higher in futures markets, up another 48 cents per barrel, to $74.37 on the NY Merc. Meanwhile, gold was taking another beating, losing $11, to close at $943.70. Silver responded positively, however slightly, up 3 cents, to $14.23 per ounce. Natural gas, trading at 7-year lows, caught a bit of a bid, though a gain to just $2.92 is still well below levels seen in recent years. The disparity between crude oil and natural gas prices is beginning to cause a stir, especially in US markets. Gas discovery and extraction has been aided by technology recently and the word is that the US is probably sitting on at least a 20 year supply - some estimates are as high as 100 years - of natural gas, causing the price to plummet.
If there is such an abundance of natural gas and crude prices remain high, it won't be long before those natural gas conversion kits for cars become all the rage. Of course, there still aren't many places where one could fill up on nat. gas., but with prices so low, don't be surprised if a number of new businesses aren't started up based on the assumption that oil will stay high and natural gas low. Maybe we should have listened to T. Boone Pickens last summer when he was saying that natural gas was the bridge between oil and renewable energy.
On the stock market, naturally, there was the usual chorus of caution from the punditry, with more than a few analysts saying the rally had run its course and it was time to take profits, take a break and get back in at lower levels in the fall. However, the camps between the naysayers and optimists were about evenly split, for varying reasons. Below, one of the more positive calls:
Subscribe to:
Posts (Atom)
Posts
