Two headlines:
JCPenney says it will close about 240 stores after filing for bankruptcy
Moderna says test results for possible COVID19 vaccine 'positive'
Only one mattered. Moderna's positive spin over fairly insignificant early stage trials for a vaccine against COVID-19 sent stocks into orbit. Actually, sending stocks skyward was more the work of the Federal Reserve's relentless currency printing press, running full speed since late March. The Fed has created so much liquidity - for nothing, out of thin air - that there's a global glut, just like oil, and it has to find somewhere to go, and that place is usually in risk assets, like stocks, because, well, it's just extra money.
It's kind of like this: Suppose you went to the race track with some friends and hit a superfecta for $15,000. You'd probably splurge over a night on the town, treating your friends to dinner at a great restaurant and endless drinks at some club. In other words, you'd basically just blow some of it because it was an unexpectedly large sum of dough.
Getting back to the cover story from Moderna, never mind that the company has been working with the National Institute of Allergy and Infectious Diseases (NIAD), headed by Dr. Anthony Fauci, since January, or that Moncef Slaoui resigned from Moderna's board of directors just last week when he was tapped by the Trump administration to head up Operation Warp Speed, the president's fast-track search for a COVID-19 vaccine.
Slaoui is reportedly going to divest all of his stock options for 156,000 shares of Moderna, which shot up nearly 20% (MRNA, 80.00, +13.31 (+19.96%) At close: May 18 4:00PM EDT) on the news.
Coincidence? Perhaps. Insider trading? Definitely, though nobody wants to talk about that.
Between the Fed's meddling and the White House's understanding of the situation (surely, anybody who is anybody in Washington, DC was aware that this news would break Monday morning), the whole COVID-19 racket is beginning to look like another major scandal to be piled atop all the other government scandals over the past 40 years. Nobody will be charged with anything. Nobody will go to jail. There probably won't even be an investigation, and, even if there is, it will reveal nothing. Business as usual for the rich and infamous in DC and on Wall Street.
Apparently, it wasn't enough to enrich politicians and send stocks to the moon. The Federal Meddlers made sure that the massive gains in gold and silver were squelched, quickly, and with undue force.
Gold was cruising along around $1762, up $20 just prior to the opening of the NYMEX (8:15 EDT). Over the course of the day, it reversed and fell, finally closing in New York at $1732, down $10 on the day.
Since it is so wickedly undervalued, it stood to reason that silver fared a little better, up nearly a dollar just before the NYMEX open, at $17.50. It was hammered back down to $16.97 at the close. Still a gain, but hardly of the magnitude that was building before the maligners became involved.
Money Daily has said this before, multiple times, in many ways: the elitist politicians and Wall Street insiders are among the most corrupt connivers in history. The levels of dishonesty, self-dealing, and bad faith practices are at extremes and they commit their financial and societal crimes in full view, without remorse. We're all just along for the show.
This show should have been cancelled long ago.
Let's not forget, unemployment, with more than 36 million out of work, is well over 20% and second quarter GDP is expected to post a 42 percent decline, numbers not seen since the Great Depression.
At the Close, Monday, May 18, 2020:
Dow: 24,597.37, +911.95 (+3.85%)
NASDAQ: 9,234.83, +220.27 (+2.44%)
S&P 500: 2,953.91, +90.21 (+3.15%)
NYSE: 11,402.23, +454.91 (+4.16%)
Showing posts with label corruption. Show all posts
Showing posts with label corruption. Show all posts
Tuesday, May 19, 2020
Wednesday, June 13, 2018
FOMC On Deck: Stock Rally Should End at 2:00 pm EDT
Void of volatility the past two days, US and global stock markets are about to get shock treatment courtesy of the Federal Reserve's FOMC, which will almost certainly increase the federal funds rate by 25 basis points, to 1.75-2.00%, the highest rate in well over a decade.
While the expected rate hike is well-anticipated, priced in (according to the usual suspect sources), and measured (one 25 BP hike per quarter is the new normal), markets will still see the rising rate environment for what it is: an economy killer, attracting all money to US treasuries and out of competing negative or near-zero-interest-paying bills, notes and bonds in other countries.
When the FOMC announces its policy decision at 2:00 pm EDT, the world will change in some small but all bad ways. Credit card payers will see their required monthly debt installments rise, any interest-rate sensitive debt obligations (most of it) will become more expensive, and, perhaps most important of all, stock buybacks will no longer appear to be the bargain they once were, when companies could borrow at extremely low interest rates to repurchase their own stock, rather than invest in capital equipment and labor.
The elephant in the room is the buyback scheme, one which has boosted stock prices to dizzying levels, based largely on lowered expectations via reducing the number of shares outstanding. Companies which had chosen to engage in the dumbest money move in recent history will still be clueless about how to expand their existing businesses. They will not invest in their own operations. They will not increase wages nor hire more human capital. They will continue their cowardly retreat into self-interested stock incentive bonuses for key executives, as if those people are the only ones in the organization who matter.
Sadly, US corporations are badly managed and have been for quite some time. The rot within the boardrooms and executive suites began many decades ago and has only accelerated though the first two decades of the new century, long after the "Greed is Good" Gordon Gecko exclamation point from the 90s.
Today, the fictional Mr. Gecko would be ridiculed for his naivety, modesty, and restraint by the avaricious purveyors of corporate theft currently occupying the positions of CEO and CFO at many major corporations traded globally.
As corporate executives continue to be glorified as champions of free enterprise and business leaders, elevated to the level of gods and goddesses, the corruption that has engulfed the entire political and economic spectrum will come to full bloom, the excesses and poor decisions exacerbated by tightening finial conditions. Just when everything becomes more dear and out of reach to the ordinaries, the wealthy and connected will resort to outright, in-your-face larceny, justified by an entitled mindset.
Once it begins to get worse, the levels of lawlessness, greed, immorality, and corruption will become unbearable, but, as it was in 2008 and 2009, none of the most obvious criminals will go to jail. Few will even be indicted.
When it's obvious that stocks are going to continue devaluing - a condition that's probably well-understood already by the elite - the rats will jump ship en masse along with their ill-gotten gains.
The short-term rally that began on June 1 may not end immediately after the FOMC decision, but it almost certainly will end shortly thereafter. The NASDAQ made a new all-time high on Tuesday while the Dow languished with a minor loss, ending a four-day win streak as it reached the upper band of its recent trend line.
Now comes the losing.
Next comes the lying.
Dow Jones Industrial Average June Scorecard:
At the Close, Tuesday, June 12, 2018:
Dow Jones Industrial Average: 25,320.73, -1.58 (-0.01%)
NASDAQ: 7,703.79, +43.87 (+0.57%)
S&P 500: 2,786.85, +4.85 (+0.17%)
NYSE Composite: 12,844.72, -12.24 (-0.10%)
While the expected rate hike is well-anticipated, priced in (according to the usual suspect sources), and measured (one 25 BP hike per quarter is the new normal), markets will still see the rising rate environment for what it is: an economy killer, attracting all money to US treasuries and out of competing negative or near-zero-interest-paying bills, notes and bonds in other countries.
When the FOMC announces its policy decision at 2:00 pm EDT, the world will change in some small but all bad ways. Credit card payers will see their required monthly debt installments rise, any interest-rate sensitive debt obligations (most of it) will become more expensive, and, perhaps most important of all, stock buybacks will no longer appear to be the bargain they once were, when companies could borrow at extremely low interest rates to repurchase their own stock, rather than invest in capital equipment and labor.
The elephant in the room is the buyback scheme, one which has boosted stock prices to dizzying levels, based largely on lowered expectations via reducing the number of shares outstanding. Companies which had chosen to engage in the dumbest money move in recent history will still be clueless about how to expand their existing businesses. They will not invest in their own operations. They will not increase wages nor hire more human capital. They will continue their cowardly retreat into self-interested stock incentive bonuses for key executives, as if those people are the only ones in the organization who matter.
Sadly, US corporations are badly managed and have been for quite some time. The rot within the boardrooms and executive suites began many decades ago and has only accelerated though the first two decades of the new century, long after the "Greed is Good" Gordon Gecko exclamation point from the 90s.
Today, the fictional Mr. Gecko would be ridiculed for his naivety, modesty, and restraint by the avaricious purveyors of corporate theft currently occupying the positions of CEO and CFO at many major corporations traded globally.
As corporate executives continue to be glorified as champions of free enterprise and business leaders, elevated to the level of gods and goddesses, the corruption that has engulfed the entire political and economic spectrum will come to full bloom, the excesses and poor decisions exacerbated by tightening finial conditions. Just when everything becomes more dear and out of reach to the ordinaries, the wealthy and connected will resort to outright, in-your-face larceny, justified by an entitled mindset.
Once it begins to get worse, the levels of lawlessness, greed, immorality, and corruption will become unbearable, but, as it was in 2008 and 2009, none of the most obvious criminals will go to jail. Few will even be indicted.
When it's obvious that stocks are going to continue devaluing - a condition that's probably well-understood already by the elite - the rats will jump ship en masse along with their ill-gotten gains.
The short-term rally that began on June 1 may not end immediately after the FOMC decision, but it almost certainly will end shortly thereafter. The NASDAQ made a new all-time high on Tuesday while the Dow languished with a minor loss, ending a four-day win streak as it reached the upper band of its recent trend line.
Now comes the losing.
Next comes the lying.
Dow Jones Industrial Average June Scorecard:
| Date | Close | Gain/Loss | Cum. G/L |
| 6/1/18 | 24,635.21 | +219.37 | +219.37 |
| 6/4/18 | 24,813.69 | +178.48 | +397.85 |
| 6/5/18 | 24,799.98 | -13.71 | +384.14 |
| 6/6/18 | 25,146.39 | +346.41 | +730.55 |
| 6/7/18 | 25,241.41 | +95.02 | +825.57 |
| 6/8/18 | 25,316.53 | +75.12 | +900.69 |
| 6/11/18 | 25,322.31 | +5.78 | +906.47 |
| 6/12/18 | 25,320.73 | -1.58 | +904.89 |
At the Close, Tuesday, June 12, 2018:
Dow Jones Industrial Average: 25,320.73, -1.58 (-0.01%)
NASDAQ: 7,703.79, +43.87 (+0.57%)
S&P 500: 2,786.85, +4.85 (+0.17%)
NYSE Composite: 12,844.72, -12.24 (-0.10%)
Thursday, October 6, 2016
Fraud, Corruption Rampant In All Financial Markets
It's once again becoming more and more difficult to post anything even remotely resembling real market analysis when there is so much fraud, corruption, and manipulation of markets.
This is primarily the fault of the world's central banks, who now control practically every financial market in the world. What is especially troubling is that these central banks - via their conduits and proxies in the commercial banking world - routinely corrupt the prices of gold and silver, the only real money.
Just a few days ago, gold and silver were smashed down to save shorts (central bank proxies) who have been dying a slow death for most of the year.
The losses in price were massive and still have not relented. Silver, for instance, has been close to $20 per ounce for most of 2016, but today was pounded down to $17.29 per ounce.
Gold was battered from $1320 an ounce on Monday to $1250 today.
The only sound advice when it comes to precious metals is to buy the dips and hold. Also, for silver investors, solar panels are very inexpensive and also provide usable value in terms of free electricity.
Otherwise, we're all being screwed by banks and governments. Someday, it will end. Hopefully, before we're all dead.
Thursday's Garbage Plate:
Dow Jones Industrial Average
18,268.50, -12.53 (-0.07%)
NASDAQ
5,306.85, -9.17 (-0.17%)
S&P 500
2,160.77, +1.04 (0.05%)
NYSE Composite
10,675.17, -8.78 (-0.08%)
This is primarily the fault of the world's central banks, who now control practically every financial market in the world. What is especially troubling is that these central banks - via their conduits and proxies in the commercial banking world - routinely corrupt the prices of gold and silver, the only real money.
Just a few days ago, gold and silver were smashed down to save shorts (central bank proxies) who have been dying a slow death for most of the year.
The losses in price were massive and still have not relented. Silver, for instance, has been close to $20 per ounce for most of 2016, but today was pounded down to $17.29 per ounce.
Gold was battered from $1320 an ounce on Monday to $1250 today.
The only sound advice when it comes to precious metals is to buy the dips and hold. Also, for silver investors, solar panels are very inexpensive and also provide usable value in terms of free electricity.
Otherwise, we're all being screwed by banks and governments. Someday, it will end. Hopefully, before we're all dead.
Thursday's Garbage Plate:
Dow Jones Industrial Average
18,268.50, -12.53 (-0.07%)
NASDAQ
5,306.85, -9.17 (-0.17%)
S&P 500
2,160.77, +1.04 (0.05%)
NYSE Composite
10,675.17, -8.78 (-0.08%)
Tuesday, July 19, 2011
Markets Soar on New Gang of Six Debt Ceiling Proposal
Supposedly, the government will fix everything by changing the way the CPI is measured, which means that Social Security recipients are about to get whacked by way of inflation.
If ever there was an inept government being led around by its nose by financial masters, this one is it. Whatever Wall Street wants, Wall Street gets. As for the general population - the ones who pay all the bills and pay for bailouts and frauds - they receive the shaft.
The current legislation under proposal, offered by the Senate's Gang of Six, promises %3.7 Trillion in savings, some of it - about $1 Trillion - supposedly to come from increased revenues. House Republicans have already started making noise about it, since the plan calls for some tax increases. While President Obama seemed to be thrilled about the plan at a 1:30 press conference, party leaders Harry Reid and Mitch McConnell seem to have been cut off at the knees after working on an alternative plan to both save face and raise the debt ceiling.
Nonetheless, Wall Street acted as though manna was being dropped from the heavens, boosting stocks an additional 100 points on top of the bogus 100-point, low-volume, morning melt-up.
Forget TV dramas and soap operas. The best one is being played out right on CNBC every day with the fraudulent bankers running the politicians in a light-hearted farce known as the US economy.
Dow 12,587.42, +202.26 (1.63%)
NASDAQ 2,826.52, +61.41 (2.22%)
S&P 500 1,326.73, +21.29 (1.63%)
NYSE Composite 8,254.38, +118.85 (1.46%)
Advancing issues led decliners by an unhealthy margin, 5167-1418. On the NASDAQ, there were 68 new highs and 34 new lows. The NYSE showed 79 new highs and 32 new lows. The combined total of 147 new highs and 66 new lows completely reversed yesterday's dour numbers. Volume was as pathetic as it gets, especially on a 200-point Dow move.
NASDAQ Volume 1,842,038,625.00
NYSE Volume 4,228,335,000
Commodities changed direction on the day as well, which is not surprising for WTI crude oil, which continued it's up-and-down daily fluctuation, rising by $1.57, to $97.50. The lowered prices for gold (-$1.30, to $1,601.10) and silver (-0.12, to $40.22) are also in line with the corrupt rigging in those markets.
The best news of the day came from the financial sector, which was offering its own version of "recovery summer." Bank of America (BAC) posted a loss of 90 cents per share in the second quarter, mostly attributed to mortgage put-backs and side deals with note-holders. The stock traded as low as 9.40 following the pre-market release of second quarter results, ending the day down 0.15, at 9.57, another new 2-year low in a recent string of them.
Goldman Sachs (GS) also released fiscal first quarter results before the bell and came in with numbers in-line with analyst expectations, .
From the article linked above:
Doing "God's work," huh, guys? God must be angry.
If ever there was an inept government being led around by its nose by financial masters, this one is it. Whatever Wall Street wants, Wall Street gets. As for the general population - the ones who pay all the bills and pay for bailouts and frauds - they receive the shaft.
The current legislation under proposal, offered by the Senate's Gang of Six, promises %3.7 Trillion in savings, some of it - about $1 Trillion - supposedly to come from increased revenues. House Republicans have already started making noise about it, since the plan calls for some tax increases. While President Obama seemed to be thrilled about the plan at a 1:30 press conference, party leaders Harry Reid and Mitch McConnell seem to have been cut off at the knees after working on an alternative plan to both save face and raise the debt ceiling.
Nonetheless, Wall Street acted as though manna was being dropped from the heavens, boosting stocks an additional 100 points on top of the bogus 100-point, low-volume, morning melt-up.
Forget TV dramas and soap operas. The best one is being played out right on CNBC every day with the fraudulent bankers running the politicians in a light-hearted farce known as the US economy.
Dow 12,587.42, +202.26 (1.63%)
NASDAQ 2,826.52, +61.41 (2.22%)
S&P 500 1,326.73, +21.29 (1.63%)
NYSE Composite 8,254.38, +118.85 (1.46%)
Advancing issues led decliners by an unhealthy margin, 5167-1418. On the NASDAQ, there were 68 new highs and 34 new lows. The NYSE showed 79 new highs and 32 new lows. The combined total of 147 new highs and 66 new lows completely reversed yesterday's dour numbers. Volume was as pathetic as it gets, especially on a 200-point Dow move.
NASDAQ Volume 1,842,038,625.00
NYSE Volume 4,228,335,000
Commodities changed direction on the day as well, which is not surprising for WTI crude oil, which continued it's up-and-down daily fluctuation, rising by $1.57, to $97.50. The lowered prices for gold (-$1.30, to $1,601.10) and silver (-0.12, to $40.22) are also in line with the corrupt rigging in those markets.
The best news of the day came from the financial sector, which was offering its own version of "recovery summer." Bank of America (BAC) posted a loss of 90 cents per share in the second quarter, mostly attributed to mortgage put-backs and side deals with note-holders. The stock traded as low as 9.40 following the pre-market release of second quarter results, ending the day down 0.15, at 9.57, another new 2-year low in a recent string of them.
Goldman Sachs (GS) also released fiscal first quarter results before the bell and came in with numbers in-line with analyst expectations, .
From the article linked above:
Revenue in Goldman's core fixed-income trading division fell 63% sequentially and 53% year-over-year due to reduced trading activity and economic uncertainty. That, along with weakness in its lending-and-investing division, led to an 18% year-on-year decline in overall firm revenue.
Doing "God's work," huh, guys? God must be angry.
Friday, May 14, 2010
So, I Was Right About the Fraud, Right?
OK, I hae stated my case all week. The case of the skeptic, of the cynic, of the personwho believes those who run big firms and those who execute trades for those big firms are among the most dishonest, corrupt, incorrigible people to ever set foot upon the planet, and it is they who are responsible (in cahoots with certain government agents) for the "flash crash" of last Thursday and much of the subsequent market action afterwards.
You can look back over the past six days of posts and my story doesn't vary. Insidious insiders caused the meltdown and bounce last Thursday, May 6, 2010, walked stocks further down on Friday, May 7, and knew full well that the EU would not only bail out Greece, but that they would approve a nearly $1 Trillion rescue package over the weekend.
When the market spiked 400 points at the open on Monday, it was they who benefited and it again is the very same people who have been selling at ridiculous short-term profits all week.
Here, for your reading and dancing pleasure are the numbers:
Thursday, May 6: Right around 2:30 in the afternoon, the Dow plummets suddenly, about 600 points, for a total downdraft of almost 1000 points, finally bouncing off 9,787.17. Just as quickly as the market fell, it rebounded. Traders and individuals are stunned. The Dow closes at 10,520.32.
Friday, May 7: Already confused and afraid, market participants sell out of fear that there are nefarious forces at work and they are correct. Dow closes at 10,380.43, a 10-week low.
Monday, May 10: EU approves monstrous bailout for member nations nearing default. Market gaps up 400 points at the open, benefiting only those who bought in on Thursday or Friday. Dow closes at 10,785.14.
Tuesday, May 11: Stocks moderate as insiders quietly begin selling shares. Dow closes at 10,748.26.
Wednesday, May 12: In what looked very much like a short squeeze, insiders maximize profits by boosting the Dow another nearly-200 points. Dow closes at 10,896.91.
Thursday, May 13: Selling now commences in earnest as insiders ramp up trading. Dow closes down 114 points, at 10,782.95.
Friday, May 14: More vigorous selling, with a bottom intra-day at 10,537.25. Dow closes down another 162 points, at 10,620.16.
There you have it. From Friday's close of 10,380.43, after all the obfuscation and hoopla, the Dow bottoms a week later at 10,537.25, a minuscule 157-point move, with plenty of action (for thieves, crooks and criminals) in between.
I've said it before, but the action of the past week confirms that Wall Street is no place for individual investors. There are far too many sharks in the waters to ensure safe swimming.
Dow 10,620.16. -162.79 (1.51%)
NASDAQ 2,346.85, -47.51 (1.98%)
S&P 500 1,135.68, -21.75 (1.88%)
NYSE Composite 7,077.64, -156.73 (2.17%
Decliners beat advancers, 5600-989. New highs barely edged now lows, 101-87. Volume improved a bit over Thursday's levels, though with the market pointing down, that's an ill-boding omen.
NYSE Volume 6,872,919,000.00
NASDAQ Volume 2,596,956,000.00
Oil was splattered all over the trading pits, losing $2.79 on the session, to $71.61, a 12% decline in a month, though gas prices are still at or above the levels they were two weeks ago, when crude was $86/barrel. Motorists are neither stupid nor amused at this non-conforming development.
Even the metals settled down, with gold losing $1.40, to $1,227.40 and silver off 27 cents, to $19.20.
A wild week, unless you were paying attention at the end of the prior week. Then you saw the raw greed and corruption that is part and parcel of today's trading environment.
It stinks. People should be going to jail. Unfortunately, the government is likely in on the game.
You can look back over the past six days of posts and my story doesn't vary. Insidious insiders caused the meltdown and bounce last Thursday, May 6, 2010, walked stocks further down on Friday, May 7, and knew full well that the EU would not only bail out Greece, but that they would approve a nearly $1 Trillion rescue package over the weekend.
When the market spiked 400 points at the open on Monday, it was they who benefited and it again is the very same people who have been selling at ridiculous short-term profits all week.
Here, for your reading and dancing pleasure are the numbers:
Thursday, May 6: Right around 2:30 in the afternoon, the Dow plummets suddenly, about 600 points, for a total downdraft of almost 1000 points, finally bouncing off 9,787.17. Just as quickly as the market fell, it rebounded. Traders and individuals are stunned. The Dow closes at 10,520.32.
Friday, May 7: Already confused and afraid, market participants sell out of fear that there are nefarious forces at work and they are correct. Dow closes at 10,380.43, a 10-week low.
Monday, May 10: EU approves monstrous bailout for member nations nearing default. Market gaps up 400 points at the open, benefiting only those who bought in on Thursday or Friday. Dow closes at 10,785.14.
Tuesday, May 11: Stocks moderate as insiders quietly begin selling shares. Dow closes at 10,748.26.
Wednesday, May 12: In what looked very much like a short squeeze, insiders maximize profits by boosting the Dow another nearly-200 points. Dow closes at 10,896.91.
Thursday, May 13: Selling now commences in earnest as insiders ramp up trading. Dow closes down 114 points, at 10,782.95.
Friday, May 14: More vigorous selling, with a bottom intra-day at 10,537.25. Dow closes down another 162 points, at 10,620.16.
There you have it. From Friday's close of 10,380.43, after all the obfuscation and hoopla, the Dow bottoms a week later at 10,537.25, a minuscule 157-point move, with plenty of action (for thieves, crooks and criminals) in between.
I've said it before, but the action of the past week confirms that Wall Street is no place for individual investors. There are far too many sharks in the waters to ensure safe swimming.
Dow 10,620.16. -162.79 (1.51%)
NASDAQ 2,346.85, -47.51 (1.98%)
S&P 500 1,135.68, -21.75 (1.88%)
NYSE Composite 7,077.64, -156.73 (2.17%
Decliners beat advancers, 5600-989. New highs barely edged now lows, 101-87. Volume improved a bit over Thursday's levels, though with the market pointing down, that's an ill-boding omen.
NYSE Volume 6,872,919,000.00
NASDAQ Volume 2,596,956,000.00
Oil was splattered all over the trading pits, losing $2.79 on the session, to $71.61, a 12% decline in a month, though gas prices are still at or above the levels they were two weeks ago, when crude was $86/barrel. Motorists are neither stupid nor amused at this non-conforming development.
Even the metals settled down, with gold losing $1.40, to $1,227.40 and silver off 27 cents, to $19.20.
A wild week, unless you were paying attention at the end of the prior week. Then you saw the raw greed and corruption that is part and parcel of today's trading environment.
It stinks. People should be going to jail. Unfortunately, the government is likely in on the game.
Thursday, April 9, 2009
The Fantasy Economy of US Banking
I am not going to rant and rave about how the corrupt, insolvent banksters who are in control of our economy goosed the market today by having Wells Fargo (WFC) jump the gun and pre-announce their outstanding earnings - some $3 billion worth - less than 2 weeks before their actual earnings date.
The bank announced prior to the market opening, which jump-started the futures and set the tone for the trading, with all of the major indices gapping up more than 2$ at the open.
No, I'm not going to rant about how utterly without integrity are the leaders of our country and the business community. I'm just going to tell you that I closed all of my positions today and will be out of this market for the foreseeable future.
Dow 8,083.38, +246.27 (3.14%)
NASDAQ 1,652.54, +61.88 (3.89%)
S&P 500 856.56, +31.40 (3.81%)
NYSE Composite 5,376.44, +200.03 (3.86%)
It should be noted that while Wells Fargo was up 31%, they were outdone by Bank of America, which posted a 35% gain on the day. Other Dow components in the financial sector with outsize gains were American Express (AXP), up 20%, JP Morgan Chase, up 19%, and Citigroup, up a mere 12%. Bear in mind that all of these companies were the beneficiaries of taxpayer bailout money and other favorable loan terms from the Federal Reserve and Treasury. Ben Bernanke and Tim Geithner are smiling with riches tonight. Welcome to the fantasy economy.
On the day, the spill-over from the banking boom sent advancers solidly ahead of declining issues, 5586-1033. However, new lows remained ahead of new highs, 80-38. Trading volume was quiet strong.
NYSE Volume 1,835,800,000
NASDAQ Volume 2,179,931,000
Over in the commodity pits, oil was up $2.86, to $52.24. Gold continued to stall, losing $2.60, to $883.30. Silver also fell, but only by a penny, to $12.33.
Tomorrow being Good Friday, the markets are taking the day off. While the government runs not only record deficits, but enormous ones, unemployment continues to rise unabated and the real estate market continues to struggle, all's well on Wall Street, where criminals run the banks and brokerages with money supplied by you and me.
Happy Easter. I hope you find some gold inside your eggs.
The bank announced prior to the market opening, which jump-started the futures and set the tone for the trading, with all of the major indices gapping up more than 2$ at the open.
No, I'm not going to rant about how utterly without integrity are the leaders of our country and the business community. I'm just going to tell you that I closed all of my positions today and will be out of this market for the foreseeable future.
Dow 8,083.38, +246.27 (3.14%)
NASDAQ 1,652.54, +61.88 (3.89%)
S&P 500 856.56, +31.40 (3.81%)
NYSE Composite 5,376.44, +200.03 (3.86%)
It should be noted that while Wells Fargo was up 31%, they were outdone by Bank of America, which posted a 35% gain on the day. Other Dow components in the financial sector with outsize gains were American Express (AXP), up 20%, JP Morgan Chase, up 19%, and Citigroup, up a mere 12%. Bear in mind that all of these companies were the beneficiaries of taxpayer bailout money and other favorable loan terms from the Federal Reserve and Treasury. Ben Bernanke and Tim Geithner are smiling with riches tonight. Welcome to the fantasy economy.
On the day, the spill-over from the banking boom sent advancers solidly ahead of declining issues, 5586-1033. However, new lows remained ahead of new highs, 80-38. Trading volume was quiet strong.
NYSE Volume 1,835,800,000
NASDAQ Volume 2,179,931,000
Over in the commodity pits, oil was up $2.86, to $52.24. Gold continued to stall, losing $2.60, to $883.30. Silver also fell, but only by a penny, to $12.33.
Tomorrow being Good Friday, the markets are taking the day off. While the government runs not only record deficits, but enormous ones, unemployment continues to rise unabated and the real estate market continues to struggle, all's well on Wall Street, where criminals run the banks and brokerages with money supplied by you and me.
Happy Easter. I hope you find some gold inside your eggs.
Thursday, February 5, 2009
Bad News Rally? Really?
Once the opening bell rang, investors knew what to do after seeing the latest round of initial unemployment claims coming in at a record number, 626,000. All of the major indices dropped right out of the gate, building losses until right around 10:30 am, with the usual suspects, banks and related financial firms, leading the way.
Adding to the early Thursday thumping was the 4th quarter report from Cisco (CSCO), along with a very disappointing outlook for Q1 of 2009.
Additionally, a slew of retailers reported same-store sales falling in the range of 15-25% in January. Overall, there wasn't much good news about.
But, then word hit the street that “mark-to-market” accounting rules might be suspended to provide additional relief to banks and financial institutions. In other words, banks would be able to hide bad debts deep in the bowels of their books. Fine. Dandy. More phony accounting should be just the elixir to pull the nation out of its deflationary tailspin.
I have a word for what the government has been doing and continues to do regarding the banks. It's called "manipulation."
Massaging the bank's books aren't going to magically make the bad paper go away. Toxic CDO and MBS are bad, plain and simple. Allowing the banks to put them into a tier of liabilities or assets that doesn't realistically reflect their market value only delays the eventual reckoning. It was the suggested "mark to model" accounting, by which the banks were able to conceal their liabilities in the gobbledegook of their accounting which was largely responsible for the entire mess to begin with. Now, the "change agents" in the federal government believe that a return to those failed and false standards will somehow turn the tide.
Rubbish. Absolute garbage and trash. The government has no silver bullet. The answer is to allow the market to function by bankrupting all of the major players (Bank of America, Citigroup, Goldman Sachs, JP Morgan, Morgan Stanley, et. al.) who are INSOLVENT. Instead, the government and Wall Street is conspiring to continue the rape of the American taxpayer by propping up these failed institutions. They are plotting nothing less than the destruction of the United States of America.
So, the market soars on the news. The Dow, in particular, turned a 110-point loss at 10:30 am to a 150-point gain just after noon. The other indices registered similar moves and finished at or near the highs of the day. Not surprisingly, the banking sector was up sharply.
Dow 8,063.07, +106.41 (1.34%)
NASDAQ 1,546.24, +31.19 (2.06%)
S&P 500 845.85, +13.62 (1.64%)
NYSE Composite 5,326.01, +83.26 (1.59%)
So, there you have it. Bad news almost all around, but because the feds offer easier accounting rules, everything is magically worth more today than yesterday. Not only is our government completely off the rails, they are taking all of the money with them through the corrupt, failed banking system. If Americans ever understand the truth rather than accepting the pablum spoon-fed to them daily by the equally-complicit mainstream media, there would be marches and sit-ins in Washington which would make the record crowds at Obama's inauguration look like a high-school picnic - that is, if the American people somehow rediscover their spines.
Of course, most of the American population has been placated by either poverty, the media, handouts (welfare and extended unemployment benefits) or a noxious combination of all three. Largely, the American public is a brain-dead, limp and nearly lifeless non-entity. They don't have a voice in their politics and those who actually understand what's happening are marginalized as kooks or conspirators. Our rights have been gradually stripped away (and not restored by the current administration) to the point at which we barely matter. Congress and the president do as they please. Wall Street openly steals billions of dollars. Americans pay their bills, struggle to make ends meet, try to get by, hundreds of thousands of Kentuckians are still in the dark and cold, recalling images of hurricane Katrina and the aftermath of New Orleans. Sick. Sick Sick.
Tracking the day's trends, advancing issues beat back losers, 4155-1308, but, new lows continued to hold a large edge over new highs, 288-12. Volume was very high, especially at the open (down) and into the close (flat) as the powers at work threw everything they had into the market to prevent the dissipation of the day's gains. The bull-bear struggle from 3:30 to 4:00 pm was monumental, even though the indices barely budged.
NYSE Volume 1,627,892,000
NASDAQ Volume 2,563,955,000
Commodity markets responded as would be expected. Oil rose by 85 cents, to $41.17. Gold was up $12.00, to $914.20; silver advanced another 28 cents, to $12.75.
Naturally, all the efforts of the pumpers and pimps of the market could not overcome the monumental resistance line set up at 8149 on the Dow... not even coming close. Friday morning will prove to be quite interesting. The Bureau of Labor Statistics releases their non-farms payroll report for January at 8:30 am. The consensus is for another loss of 525,000 jobs. ADP has already (on Wednesday) released their independent figure for January at -522,000 jobs for January. Whichever way the BLS decides to massage their figures will decide the line of the day's trade. Anything significantly over their "consensus" figure should cause a decline. Anything at or below the figure will trigger a monster rally. Either way, its the sucker trade of the week, or year, or... well, there have been so many sucker moves lately that it may just fall in line with the rest of them.
Suck it up, America. The oligarchs cannot be inconvenienced.
Adding to the early Thursday thumping was the 4th quarter report from Cisco (CSCO), along with a very disappointing outlook for Q1 of 2009.
Additionally, a slew of retailers reported same-store sales falling in the range of 15-25% in January. Overall, there wasn't much good news about.
But, then word hit the street that “mark-to-market” accounting rules might be suspended to provide additional relief to banks and financial institutions. In other words, banks would be able to hide bad debts deep in the bowels of their books. Fine. Dandy. More phony accounting should be just the elixir to pull the nation out of its deflationary tailspin.
I have a word for what the government has been doing and continues to do regarding the banks. It's called "manipulation."
Massaging the bank's books aren't going to magically make the bad paper go away. Toxic CDO and MBS are bad, plain and simple. Allowing the banks to put them into a tier of liabilities or assets that doesn't realistically reflect their market value only delays the eventual reckoning. It was the suggested "mark to model" accounting, by which the banks were able to conceal their liabilities in the gobbledegook of their accounting which was largely responsible for the entire mess to begin with. Now, the "change agents" in the federal government believe that a return to those failed and false standards will somehow turn the tide.
Rubbish. Absolute garbage and trash. The government has no silver bullet. The answer is to allow the market to function by bankrupting all of the major players (Bank of America, Citigroup, Goldman Sachs, JP Morgan, Morgan Stanley, et. al.) who are INSOLVENT. Instead, the government and Wall Street is conspiring to continue the rape of the American taxpayer by propping up these failed institutions. They are plotting nothing less than the destruction of the United States of America.
So, the market soars on the news. The Dow, in particular, turned a 110-point loss at 10:30 am to a 150-point gain just after noon. The other indices registered similar moves and finished at or near the highs of the day. Not surprisingly, the banking sector was up sharply.
Dow 8,063.07, +106.41 (1.34%)
NASDAQ 1,546.24, +31.19 (2.06%)
S&P 500 845.85, +13.62 (1.64%)
NYSE Composite 5,326.01, +83.26 (1.59%)
So, there you have it. Bad news almost all around, but because the feds offer easier accounting rules, everything is magically worth more today than yesterday. Not only is our government completely off the rails, they are taking all of the money with them through the corrupt, failed banking system. If Americans ever understand the truth rather than accepting the pablum spoon-fed to them daily by the equally-complicit mainstream media, there would be marches and sit-ins in Washington which would make the record crowds at Obama's inauguration look like a high-school picnic - that is, if the American people somehow rediscover their spines.
Of course, most of the American population has been placated by either poverty, the media, handouts (welfare and extended unemployment benefits) or a noxious combination of all three. Largely, the American public is a brain-dead, limp and nearly lifeless non-entity. They don't have a voice in their politics and those who actually understand what's happening are marginalized as kooks or conspirators. Our rights have been gradually stripped away (and not restored by the current administration) to the point at which we barely matter. Congress and the president do as they please. Wall Street openly steals billions of dollars. Americans pay their bills, struggle to make ends meet, try to get by, hundreds of thousands of Kentuckians are still in the dark and cold, recalling images of hurricane Katrina and the aftermath of New Orleans. Sick. Sick Sick.
Tracking the day's trends, advancing issues beat back losers, 4155-1308, but, new lows continued to hold a large edge over new highs, 288-12. Volume was very high, especially at the open (down) and into the close (flat) as the powers at work threw everything they had into the market to prevent the dissipation of the day's gains. The bull-bear struggle from 3:30 to 4:00 pm was monumental, even though the indices barely budged.
NYSE Volume 1,627,892,000
NASDAQ Volume 2,563,955,000
Commodity markets responded as would be expected. Oil rose by 85 cents, to $41.17. Gold was up $12.00, to $914.20; silver advanced another 28 cents, to $12.75.
Naturally, all the efforts of the pumpers and pimps of the market could not overcome the monumental resistance line set up at 8149 on the Dow... not even coming close. Friday morning will prove to be quite interesting. The Bureau of Labor Statistics releases their non-farms payroll report for January at 8:30 am. The consensus is for another loss of 525,000 jobs. ADP has already (on Wednesday) released their independent figure for January at -522,000 jobs for January. Whichever way the BLS decides to massage their figures will decide the line of the day's trade. Anything significantly over their "consensus" figure should cause a decline. Anything at or below the figure will trigger a monster rally. Either way, its the sucker trade of the week, or year, or... well, there have been so many sucker moves lately that it may just fall in line with the rest of them.
Suck it up, America. The oligarchs cannot be inconvenienced.
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