In the bizarro-world equity market that prevails post-crash 2008, there's absolutely nothing better than a downward revision to GDP and a horrifying slump in durable orders to spark a one-off rally, and that's exactly what happened on Thursday, when the government (that sage group of geeks working on dilapidated, outdated computers, deciphering information through models long ago discredited and obsolete) decided (one assumes they don't actually crunch numbers, preferring to just "eyeball" the data) that GDP grew not at 1.7% in the second quarter, but actually at 1.3%.
Along with that dreadful assessment of the US economy came another report, this from another government geek gaggle (Census Bureau of the Department of Commerce), showing that durable orders for August fell 13.2% after registering a gain of 4.1% in July.
Notwithstanding that such reports are already ancient history by the time they reach the markets, such a decline - attributed mainly to Boeing, which saw orders fall from over 100 aircraft to one - would have sent markets into a dizzying tailspin in normal times. Being that these times are anything but normal, the insiders rigging the markets for maximum stupidity and ignorance deemed that a small rally was in order, damn the statistics and those annoying government numerological escapades into reality.
Obvious to anyone still in possession of sufficient grey matter between the ears t perform rudimentary cognitive analysis, this market is currently priced for boom times, not sad times, bad times or even moderately glad times, but poised to break out to new all-time highs in short order, presumably before the selection (Does anyone still believe that touch-screen voting computers with no paper trail actually record one's vote accurately?) of our new president, or, in the case that the current spendthrift-in-chief is chosen again, the same president (it's neater that way).
Well, sometimes markets are wrong. Not often, but in the case of blatant manipulation, dismissive of data and control by a select few, they can be way off, as, one might suspect, they are at the current time. How this disconnect with what suffices as reality on Main Street is rectified by Wall Street is for prognosticators and stuffy, beef-fed analysts. It is our contention that they are wrong, and will remain wrong until the Federal Reserve is as bankrupt financially as our congress is morally.
It may take some time, but the Fed's ZIRP and QEternity are certain to promote the progress toward complete insolvency with abundant zeal. Insisting on monetizing almost all government debt and sopping up underwater MBS at par when the true price (ah, price discovery, what a quaint concept) is something of the order of par-minus-some-large-percentage, the Fed is well along a course of self-destructive behavior that will be difficult, if even possible, to unwind.
Dislocations and distortions in just about all markets run rampant and it's only a matter of time before all hell breaks loose and the disjunction becomes a permanent plague on the global stage. Europe is no better, but they're holding the EU together with string and baling wire until, ostensibly, the US elections have passed. Then, they will be allowed to go into what most people would call a "haywire" phase which will make the protest and violent clashes of police and protesters this week look like a serene picnic by a lake.
It is not without some research and dedication to honest (though admittedly slanted) reportage and analysis that the writer/editor of this blog has come to the conclusion that no market can be trusted these days. It has long been suspected that elaborate schemes and rigging and excessive money-printing have delayed a complete unraveling, but now it is certain. Nothing is to be trusted. Not the words from a politician's lips, nor the babbling of baby-faced analysts suggesting that the S&P will exceed 1600 next year or other such pitiful pronouncements can be believed.
In truth, emerging black markets and underground or alternative economies are more trustworthy and honest, flourishing, as a matter of fact. When one trades an ounce of gold, silver or even weed for another tangible object, perhaps land or food, one can be fairly certain a fair deal has been had by both sides. Handshakes are preferred over contracts and disputes are settled the way our forefathers did, with understanding, tolerance and sometimes, force. Courts are the brunt of jukes, providing neither justice nor equitable decisions. Manned by small-minded, overpaid monarchs in robes, they exist as a facade today, a control fraud of the highest order. The judicial system in America has been broken for a long time. Now, when the general public must abide by an ever-changing and increasingly stifling code of behavior under the hubris of "law" and the elite abide only by what suits them, courts serve only those who submit to them, a number that lowers daily.
It is with this understanding of the mess that America has created for itself and congress and Wall Street perpetuate, that this writer has sought refuge in alternatives, especially in nature and farming. The differences are stark: when one looks for growth in equities, the patterns are iffy and distorted; when one grows a plant from seed, the bounty is straight and true. Stocks are high risk; botany is natural and risk is measured by the abundance or lack of sunlight, nutrients in the soil and avoidance of pestilence.
That's why some regular readers of this blog may have noticed a deviation from schedule over the past months, sometimes postings coming in very late (like this one) or not at all. It is because the author has been busy testing, cultivating and planning. Happily, it has all come together recently.
The transition from following crooked markets to reporting more and more on how Americans actually survive and prosper on their own will continue apace. Since the title of this blog is "Money Daily" an exploration of how one can be assured of one's daily "bread" - without "assistance" from brokers or online trading platforms and analytics - it seems appropriate to transition from reportage of the "official" economy to the real economy, the one that avoids taxation and interference as our forefathers would advise, the one that CNBC cannot and thus, does not, acknowledge. the one that forms the backbone of society and commerce.
You want "Money, Daily?" Buy a few chickens and sell the eggs. It's a start.
As of this writing, futures are tanking. Could the trend of stocks being up every Friday encounter a glitch, a crack in the fraud facade?
More on Monday.
Dow 13,485.97, +72.46(0.54%)
NASDAQ 3,136.60, +42.90(1.37%)
S&P 500 1,447.15, +13.83(0.96%)
NYSE Composite 8,303.74, 82.44 (1.06%)
ASDAQ Volume 1,473,257,750
NYSE Volume 2,766,946,250
Combined NYSE & NASDAQ Advance - Decline: 4033-1408
Combined NYSE & NASDAQ New highs - New lows: 221-28
Friday, September 28, 2012
Wednesday, September 26, 2012
Another Leg down for Stocks; BTFD or Correction Coming?
As a fllow-up to Tuesday's dip into the red, stocks could not forge into positive territory on Wednesday, as the NASDAQ suffered its first three-day losing streak since August 2nd, and the other major averages fell in unison.
Losses were not deep, but steady throughout the afternoon session, closing near the lows. Topping concerns was renewed tension in Europe where protests in Spain overnight and in Greece during the day turned violent.
In Madrid, youths turned out in large numbers to protest parliament's ongoing forays into austerity and to voice anger of the 50% unemployment rate plaguing Spanish youth. Police beat protesters with batons and scores of arrests occurred.
Greece's protests were union organized, as many as 200,000 people from the largest public and private unions marched through the capitol. The demonstration was largely peaceful until anarchists began throwing molotov cocktails at police and media stations. Police responded with tear gas and pepper spray.
By comparison, markets were less jittery in the US as compared to Europe, where Spanish stocks slid by more than three percent and the majority of developed nations' bourses suffered losses of between 1.5 and 2.5 percent.
Commodities were also hit, with gold down sharply and oil closing below $90 per barrel for the first time in more than two months. Silver, which slipped nearly one percent in early trading, rebounded to finish the day close to unchanged.
Losses in risk assets prompted questioning over whether the Fed's new QEternity policy would be effective in boosting or maintaining asset prices in the near term or whether the global economies might be sinking further into a condition of malaise and ill-investment. Some analysts saw the pull-back as technical in nature; others thought a correction was overdue and about to commence.
That left traders in a quandary over where to move next: either out of stocks and back into bonds, or, to stay invested in equities.
Sadly, most people being sheeple, risk assets such as stocks are likely to remain in favor until a more robust, sustained devaluation takes place. Such a scenario could very well play out within the next two weeks. The third quarter is quickly drawing to a close, though the overall strength or weakness of the US economy cannot be measured accurately by the stock market.
Anecdotally, new home sales failed to meet expectations, another cause for concern on Wall street.
Hey, it's only money.
Dow 13,413.51, -44.04 (0.33%)
NASDAQ 3,093.70, -24.03 (0.77%)
S&P 500 1,433.32, -8.27 (0.57%)
NYSE Composite 8,221.75, -53.03 (0.64%)
NASDAQ Volume 1,725,565,750
NYSE Volume 3,535,526,250
Combined NYSE & NASDAQ Advance - Decline: 2145-3341
Combined NYSE & NASDAQ New highs - New lows: 136-48
WTI crude oil: 89.98, -1.39
Gold: 1,753.60, -12.80
Silver: 33.94, -0.01
Losses were not deep, but steady throughout the afternoon session, closing near the lows. Topping concerns was renewed tension in Europe where protests in Spain overnight and in Greece during the day turned violent.
In Madrid, youths turned out in large numbers to protest parliament's ongoing forays into austerity and to voice anger of the 50% unemployment rate plaguing Spanish youth. Police beat protesters with batons and scores of arrests occurred.
Greece's protests were union organized, as many as 200,000 people from the largest public and private unions marched through the capitol. The demonstration was largely peaceful until anarchists began throwing molotov cocktails at police and media stations. Police responded with tear gas and pepper spray.
By comparison, markets were less jittery in the US as compared to Europe, where Spanish stocks slid by more than three percent and the majority of developed nations' bourses suffered losses of between 1.5 and 2.5 percent.
Commodities were also hit, with gold down sharply and oil closing below $90 per barrel for the first time in more than two months. Silver, which slipped nearly one percent in early trading, rebounded to finish the day close to unchanged.
Losses in risk assets prompted questioning over whether the Fed's new QEternity policy would be effective in boosting or maintaining asset prices in the near term or whether the global economies might be sinking further into a condition of malaise and ill-investment. Some analysts saw the pull-back as technical in nature; others thought a correction was overdue and about to commence.
That left traders in a quandary over where to move next: either out of stocks and back into bonds, or, to stay invested in equities.
Sadly, most people being sheeple, risk assets such as stocks are likely to remain in favor until a more robust, sustained devaluation takes place. Such a scenario could very well play out within the next two weeks. The third quarter is quickly drawing to a close, though the overall strength or weakness of the US economy cannot be measured accurately by the stock market.
Anecdotally, new home sales failed to meet expectations, another cause for concern on Wall street.
Hey, it's only money.
Dow 13,413.51, -44.04 (0.33%)
NASDAQ 3,093.70, -24.03 (0.77%)
S&P 500 1,433.32, -8.27 (0.57%)
NYSE Composite 8,221.75, -53.03 (0.64%)
NASDAQ Volume 1,725,565,750
NYSE Volume 3,535,526,250
Combined NYSE & NASDAQ Advance - Decline: 2145-3341
Combined NYSE & NASDAQ New highs - New lows: 136-48
WTI crude oil: 89.98, -1.39
Gold: 1,753.60, -12.80
Silver: 33.94, -0.01
Tuesday, September 25, 2012
Stocks Fall; Firstrade Securites Ill-Advised as Brokerage
Just after noon, stocks did an about-face and headed into negative territory, with losses accelerating into the close.
There was no real catalyst for the event, except for the possible realization that stocks have been trading at nose-bleed levels for months, the entire global financial condition is shaky at best and a complete joke of fiat money and debt piled on top of debt which will never be repaid.
There's a reason individual investors have fled from the stok market in droves over the past few years. In fact, there are multiple reasons, starting with the crash of 2008, which engendered problems that still have not been resolved. There's the flash crash, HFTs front-running every market order, other insider unscrupulous trading activity, the fact that no financial executive has even been indicted for crimes and probably never will be.
It is the same song and dance sen here nearly daily over the past five years and it's gotten to the point at which it is almost not worth the time to publish. There's a 101-point loss on the Dow today. There will be a 150-point gain tomorrow.
None of it makes any sense until one realizes that the game is rigged and completely out of control. The scrounging and skimming of other people's money is not going to end until regular people stand up and take action. Not demand action from their elected officials, because they're part of the problem, but take matters into one's own hands, like they have in Iceland, soon to come in Greece and shortly thereafter in Spain and Italy.
The US will get around to it last of all, if ever, because the living is good here in the states, no matter how bad the economy gets. There's always another way. The stock market is a road to nowhere for you, your money and your life.
Trading in the current climate is extremely risky and likely to end in disaster for anyone, even those with intimate knowledge of the depth of the crisis, the inner despair of Wall Street and the moaning from Main Street. Better to buy land, gold, silver, live off land you own (or, considering the state of real estate taxes, rent from the government) and make your own way as best as possible.
Dow 13,457.55, -101.37 (0.75%)
Nasdaq 3,117.73, -43.05 (1.36%)
S&P 500 1,441.59, -15.30 (1.05%)
NYSE Composite 8,274.77 -81.79(0.98%)
NYSE Volume 3,677,164,500
Nasdaq Volume 1,979,931,000
Combined NYSE & NASDAQ Advance - Decline: 1507-4082
Combined NYSE & NASDAQ New highs - New lows: 326-35
WTI crude oil: 91.37, -0.56
Gold: 1,766.40, +1.80
Silver: 33.95, -0.04
There was no real catalyst for the event, except for the possible realization that stocks have been trading at nose-bleed levels for months, the entire global financial condition is shaky at best and a complete joke of fiat money and debt piled on top of debt which will never be repaid.
There's a reason individual investors have fled from the stok market in droves over the past few years. In fact, there are multiple reasons, starting with the crash of 2008, which engendered problems that still have not been resolved. There's the flash crash, HFTs front-running every market order, other insider unscrupulous trading activity, the fact that no financial executive has even been indicted for crimes and probably never will be.
It is the same song and dance sen here nearly daily over the past five years and it's gotten to the point at which it is almost not worth the time to publish. There's a 101-point loss on the Dow today. There will be a 150-point gain tomorrow.
None of it makes any sense until one realizes that the game is rigged and completely out of control. The scrounging and skimming of other people's money is not going to end until regular people stand up and take action. Not demand action from their elected officials, because they're part of the problem, but take matters into one's own hands, like they have in Iceland, soon to come in Greece and shortly thereafter in Spain and Italy.
The US will get around to it last of all, if ever, because the living is good here in the states, no matter how bad the economy gets. There's always another way. The stock market is a road to nowhere for you, your money and your life.
Trading in the current climate is extremely risky and likely to end in disaster for anyone, even those with intimate knowledge of the depth of the crisis, the inner despair of Wall Street and the moaning from Main Street. Better to buy land, gold, silver, live off land you own (or, considering the state of real estate taxes, rent from the government) and make your own way as best as possible.
Dow 13,457.55, -101.37 (0.75%)
Nasdaq 3,117.73, -43.05 (1.36%)
S&P 500 1,441.59, -15.30 (1.05%)
NYSE Composite 8,274.77 -81.79(0.98%)
NYSE Volume 3,677,164,500
Nasdaq Volume 1,979,931,000
Combined NYSE & NASDAQ Advance - Decline: 1507-4082
Combined NYSE & NASDAQ New highs - New lows: 326-35
WTI crude oil: 91.37, -0.56
Gold: 1,766.40, +1.80
Silver: 33.95, -0.04
Monday, September 24, 2012
Stocks Fall for 16th Monday in Last 17; Riots Shutter Foxconn Plant
Seriously, folks, this is getting old.
Major US averages fell for the 16th time in the last 17 Mondays.
This is the new regime. Stocks always go down on Mondays and up on Fridays. They trade in extremely narrow ranges with little to no volatility. Anybody making open orders is immediately raped by HFTs and only insiders win. There is no volume (actually today's volume on the NYSE was in the range from pathetic to morose).
There was actually some positive news on the day. According to a Sunday Times article, Goldman Sachs (GS) is planning to lay off as many as 100 partners in the immediate future. The firm denied the allegations, saying that the changes had been long-planned and many of the departures are due to retirements. No matter the case, it's always good to hear that some of the tentacles of the "giant squid" are being shorn off.
A huge riot of some 5000 workers forced the shutdown of a huge Foxconn facility in Taiyuan, China. The facility reportedly employs 79,000 workers and manufactures the Apple iPhone and other electronic devices for companies such as Dell and Hewlett-Packard.
The price of crude oil fell again on Monday, causing speculation that the Fed's new bond purchase program, otherwise known as QEternity, is not going to be effective in creating jobs or strengthening the sagging US and global economies.
Business as usual.
Dow 13,558.92, -20.55 (0.15%)
NASDAQ 3,160.78, -19.18 (0.60%)
S&P 500 1,456.89, -3.26 (0.22%)
NYSE Composite 8,356.56, -20.95 (0.25%)
NASDAQ Volume 1,706,535,750
NYSE Volume 2,992,098,250
Combined NYSE & NASDAQ Advance - Decline: 2337-3175
Combined NYSE & NASDAQ New highs - New lows: 307-27
WTI crude oil: 91.93, -0.96
Gold: 1,764.60, -13.40
Silver: 33.98, -0.65
Major US averages fell for the 16th time in the last 17 Mondays.
This is the new regime. Stocks always go down on Mondays and up on Fridays. They trade in extremely narrow ranges with little to no volatility. Anybody making open orders is immediately raped by HFTs and only insiders win. There is no volume (actually today's volume on the NYSE was in the range from pathetic to morose).
There was actually some positive news on the day. According to a Sunday Times article, Goldman Sachs (GS) is planning to lay off as many as 100 partners in the immediate future. The firm denied the allegations, saying that the changes had been long-planned and many of the departures are due to retirements. No matter the case, it's always good to hear that some of the tentacles of the "giant squid" are being shorn off.
A huge riot of some 5000 workers forced the shutdown of a huge Foxconn facility in Taiyuan, China. The facility reportedly employs 79,000 workers and manufactures the Apple iPhone and other electronic devices for companies such as Dell and Hewlett-Packard.
The price of crude oil fell again on Monday, causing speculation that the Fed's new bond purchase program, otherwise known as QEternity, is not going to be effective in creating jobs or strengthening the sagging US and global economies.
Business as usual.
Dow 13,558.92, -20.55 (0.15%)
NASDAQ 3,160.78, -19.18 (0.60%)
S&P 500 1,456.89, -3.26 (0.22%)
NYSE Composite 8,356.56, -20.95 (0.25%)
NASDAQ Volume 1,706,535,750
NYSE Volume 2,992,098,250
Combined NYSE & NASDAQ Advance - Decline: 2337-3175
Combined NYSE & NASDAQ New highs - New lows: 307-27
WTI crude oil: 91.93, -0.96
Gold: 1,764.60, -13.40
Silver: 33.98, -0.65
Thursday, September 20, 2012
Initial Claims, Leading Indicators Disappoint; Investors Don't Care
Initial unemployment claims and the Conference Board's Index of Leading Economic Indicators both showed disappointing results but investors (those few left) didn't seem to care.
The number of people looking for jobs fell 3,000 from last week, with 382,000 new filers. Leading indicators were down 0.1 percent in August after rising 0.5 percent in July and dropping 0.5 percent in June.
Stocks traded lower in the morning, but quickly rebounded to unchanged, where they remained range-bound the remainder of the session.
It was another low-volume fiasco, brought to you by bankers who can't balance their books and journalists who can scarcely string together two cogent sentences.
Markets, especially those in the US, are so woefully correlated to the macro trade that it would be funny if it weren't so pathetic. Since fall of 2008, trading has been conducted on rumor, innuendo and the latest efforts by the Federal Reserve to "revive" the economy, even though their efforts have been directed almost entirely at rescuing failed financial institutions.
The Fed has thrown more than $20 trillion at the problems which first surfaced with sub-prime lending, but have since infected institutions and sovereign governments globally. Their efforts have been largely futile, wasteful and unfriendly to savers, but there seems to be no other way to keep the world's economic mess going other than to make frequent use of easing, by sopping up debt nobody wants because it is either eminently non-collateralized, below par or not redeemable for anything approaching fair value.
Global markets continue to plod along, nations continue to spend beyond their means and Wall Street thinks it's wonderful.
Just play along.
Dow 13,596.93 18.97(0.14%)
NASDAQ 3,175.96 6.66 (0.21%)
S&P 500 1,460.26 0.79 (0.05%)
NYSE Compos... 8,373.06 27.43 (0.33%)
NASDAQ Volume 1,789,587,250
NYSE Volume 3,372,348,500
Combined NYSE & NASDAQ Advance - Decline: 2132-3369
Combined NYSE & NASDAQ New highs - New lows: 225-35
WTI crude oil: 91.87, -0.11
Gold: 1,770.20, -1.50
Silver: 34.68, -0.09
The number of people looking for jobs fell 3,000 from last week, with 382,000 new filers. Leading indicators were down 0.1 percent in August after rising 0.5 percent in July and dropping 0.5 percent in June.
Stocks traded lower in the morning, but quickly rebounded to unchanged, where they remained range-bound the remainder of the session.
It was another low-volume fiasco, brought to you by bankers who can't balance their books and journalists who can scarcely string together two cogent sentences.
Markets, especially those in the US, are so woefully correlated to the macro trade that it would be funny if it weren't so pathetic. Since fall of 2008, trading has been conducted on rumor, innuendo and the latest efforts by the Federal Reserve to "revive" the economy, even though their efforts have been directed almost entirely at rescuing failed financial institutions.
The Fed has thrown more than $20 trillion at the problems which first surfaced with sub-prime lending, but have since infected institutions and sovereign governments globally. Their efforts have been largely futile, wasteful and unfriendly to savers, but there seems to be no other way to keep the world's economic mess going other than to make frequent use of easing, by sopping up debt nobody wants because it is either eminently non-collateralized, below par or not redeemable for anything approaching fair value.
Global markets continue to plod along, nations continue to spend beyond their means and Wall Street thinks it's wonderful.
Just play along.
Dow 13,596.93 18.97(0.14%)
NASDAQ 3,175.96 6.66 (0.21%)
S&P 500 1,460.26 0.79 (0.05%)
NYSE Compos... 8,373.06 27.43 (0.33%)
NASDAQ Volume 1,789,587,250
NYSE Volume 3,372,348,500
Combined NYSE & NASDAQ Advance - Decline: 2132-3369
Combined NYSE & NASDAQ New highs - New lows: 225-35
WTI crude oil: 91.87, -0.11
Gold: 1,770.20, -1.50
Silver: 34.68, -0.09
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