US equity markets sent a bit of a message to Fed Chairman Ben Bernanke and the FOMC board on Tuesday, selling off as a reminder that Wall Street needs another rate cut. Mr. Bernanke has been mum on the topic as the FOMC met today and finishes up their work on Wednesday with a policy announcement due out shortly after 2:00 pm ET.
Dow 13,792.47 -77.79 ; NASDAQ 2,816.71 -0.73; S&P 500 1,531.02 -9.96; NYSE Composite 10,164.97 -91.25
The choices are threefold and each bears considerable consequence. The board may lower rates 25 basis points, lower them 50 basis points or leave them as they be.
In September, the board lowered the federal funds rate 50 basis points and the stock exchanges responded with a two-week rally to record highs on the Dow and S&P before lackluster earnings shook the market back to reality. Another 50 basis point reduction does not seem to be necessary, though the Fed may see more weakness, especially in housing and credit markets, as particularly troubling.
The problem with a 50 basis point cut is that it will surely fuel inflation and send oil futures over $100 per barrel. As a committed fighter (thus far in word only) of inflation, it is doubtful that the Fed will make as bold a move.
The 25 basis point reduction is the most likely of outcomes as the cut will satisfy the Wall Street crowd without fanning the inflation flames much.
No rate cut at all would be the most desirable from a monetarist standpoint, as firmness from the Fed might induce a small rally in the US dollar, which has been pummeled recently.
The Fed must weigh their alternatives carefully and proceed in a diligent, professional manner, else they risk destroying the value of the US dollar even more.
On the trading session, declining issues defeated advancers by an 8-5 margin. New highs maintained their lead over new lows, 268-235, a slim margin, indicating an abundance of concern and uncertainty as to the Fed's next move.
Oil actually took a little off the top, losing $3.15 to close at $90.38. Gold and silver also lost ground, with gold off $4.80 and silver down a dime.
The Fed may want to keep some of its ammunition for the future, as dropping the federal funds rate below 4.50% (it's currently at 4.75%) may auger more ill for the consumer, who registered the lowest confidence reading in two years.
Rate cuts can only do so much, and with credit markets still reeling and major banks restructuring following the sub-prime shakeout, Bernanke and his fellows on the FOMC board may consider other measures, or taking a wait-and-see posture, more appropriate.
NYSE Volume 3,212,523,000
NASDAQ Volume 2,201,305,500
Tuesday, October 30, 2007
Monday, October 29, 2007
Another Winner for Wall Street
Stocks picked up where they left off last week, with each of the major indices posting positive numbers on Monday.
Gains were largely tied to expectations of another rate cut by the Federal Reserve, which begins two days of meetings of the FOMC on Tuesday. Investors are largely anticipating that the Fed will cut another 25 basis points on Wednesday.
Dow 13,870.26 +63.56; NASDAQ 2,817.44 +13.25; S&P 500 1,540.98 +5.70; NYSE Composite 10,256.22 +67.09
Gains were fairly broad-based, with advancing issues holding a 5-4 edge over decliners. New highs slaughtered new lows, 588-213, suggesting that stocks will attempt to retest recent highs during the week.
As investors trip over each other, bidding stocks to stratospheric levels, any number of economic reports this week could derail the uptrend. The government offers preliminary 3rd quarter GDP figures on Wednesday morning, prior to the market open. On Friday, November 2nd, October non-farm payroll numbers are released at 8:30 am. The forecasts are for a GDP reading of 3.1% growth and 80,000 jobs added in the month of October.
NYSE Volume 3,120,054,500
NASDAQ Volume 2,092,662,625
Gains were largely tied to expectations of another rate cut by the Federal Reserve, which begins two days of meetings of the FOMC on Tuesday. Investors are largely anticipating that the Fed will cut another 25 basis points on Wednesday.
Dow 13,870.26 +63.56; NASDAQ 2,817.44 +13.25; S&P 500 1,540.98 +5.70; NYSE Composite 10,256.22 +67.09
Gains were fairly broad-based, with advancing issues holding a 5-4 edge over decliners. New highs slaughtered new lows, 588-213, suggesting that stocks will attempt to retest recent highs during the week.
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Investors continue to ignore the constantly-rising price of crude oil, which popped another $1.67 to yet another record close at $93.53. Gold also added $5.10 to close at $792.80. Silver gained 15 cents to $14.43.The Path of Substantial Wealth and Riches: Your Parents' Influence on Your Finances
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As investors trip over each other, bidding stocks to stratospheric levels, any number of economic reports this week could derail the uptrend. The government offers preliminary 3rd quarter GDP figures on Wednesday morning, prior to the market open. On Friday, November 2nd, October non-farm payroll numbers are released at 8:30 am. The forecasts are for a GDP reading of 3.1% growth and 80,000 jobs added in the month of October.
NYSE Volume 3,120,054,500
NASDAQ Volume 2,092,662,625
Friday, October 26, 2007
US Markets On the Move
Apparently, or, if you just measure the US economy from the activity on Wall Street, we're in great shape. The Dow jumped 240 points on the week. Even better, the NASDAQ popped 79 points, or 3% in the past five sessions.
How much of it is smoke and mirrors is unknown, but speculation is that much of it is not sustainable. When a company like Countrywide Financial (CFC) can move up 33% in one day on the news that they lost $1.2 billion in the previous quarter (missing their estimate by more than $1.50), anything is possible and the level of deceit and corruption in boardrooms and trading desks is probably higher than a giraffe's ear.
Dow 13,806.70 +134.78; NASDAQ 2,804.19 +53.33; S&P 500 1,535.28 +20.88; NYSE Composite 10,189.13 +159.58
It was a bull session for certain. Advancers put the kibosh on declining issues by a 5-2 margin. New highs finally surpassed new lows, 418-245. Much of the momentum is no doubt tied to expectations for another rate cut by the Federal Reserve on Wednesday of next week.
While Wall Street parties, so do the oil barons.
The Fed is expected to announce a rate cut of 25 basis points on Halloween. Spooky.
NYSE Volume 3,616,435,000
NASDAQ Volume 2,593,624,000
How much of it is smoke and mirrors is unknown, but speculation is that much of it is not sustainable. When a company like Countrywide Financial (CFC) can move up 33% in one day on the news that they lost $1.2 billion in the previous quarter (missing their estimate by more than $1.50), anything is possible and the level of deceit and corruption in boardrooms and trading desks is probably higher than a giraffe's ear.
Dow 13,806.70 +134.78; NASDAQ 2,804.19 +53.33; S&P 500 1,535.28 +20.88; NYSE Composite 10,189.13 +159.58
It was a bull session for certain. Advancers put the kibosh on declining issues by a 5-2 margin. New highs finally surpassed new lows, 418-245. Much of the momentum is no doubt tied to expectations for another rate cut by the Federal Reserve on Wednesday of next week.
While Wall Street parties, so do the oil barons.
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Crude was up another $1.40 to close at another all-time high of $91.86. Gold shot up $16.50 to $787.50. Silver gained 38 cents to close at $14.28. Everything's going up except the value of your home (and probably your wages).Forex Foreign Currency Exchange Trading Beginner's Resource Center.
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The Fed is expected to announce a rate cut of 25 basis points on Halloween. Spooky.
NYSE Volume 3,616,435,000
NASDAQ Volume 2,593,624,000
Thursday, October 25, 2007
As the World's Money Burns
I would love to not have to report on the continuing malaise of the US equity markets, but I have found it to be a labor of duty to report that our markets are incorrigibly rigged by some of the top officials of our government and the central bank, notably, Treasury Secretary Hank Paulson and Fed Chairman Ben Bernanke.
Most of the dirty work of rigging the markets - to the upside - is done every morning at the repo window of the NY Fed, where today they granted $31 Billion of repurchase agreements to members, all intended to be plied in the open equity markets to distort and deceive the general public.
It is my duty to report that the Dow Jones Industrials were down more than 125 points at 2:00 pm ET, yet once again, closed narrowly on the downside.
Dow 13,671.92 -3.33; NASDAQ 2,750.86 -23.90; S&P 500 1,514.40 -1.48; NYSE Composite 10,029.55 +20.25
The Dow is easy to manipulate if you have virtually unlimited funds, as does the Fed. It is only 30 stocks, and many of them don't trade more than 3 or 4 million shares per session. It's a piece of cake if you have the top traders of the major brokerage firms doing your bidding in the market. And it's tough to lose money, too, when you buy puts against the same stocks you are buying, knowing all along that buying these stocks with the sole intent to move up the averages is a losing condition.
Yet they carry on, these market manipulators, not because they have the best interest of investors at heart. No, they engage in this activity because they are protecting their own bankrupt souls and institutions from exposure and financial implosion. They could care less about depositors, investors and the ordinary folk. They care only about profits on their own banks and finance companies, their bonuses and their yachts and fancy cars.
Declining issues held a narrow 17-14 edge over advancers at the close. New lows outpace new highs again, 313-270.
The housing industry is in the tank, credit markets have effectively seized up, roughly 25% of companies reporting earnings are missing their revenue and per share estimates and many are issuing pessimistic guidance for the 4th quarter and 2008.
Why is the Dow down only three points? The Fed, the PPT, the officially-sanctioned President's Working Group on Financial Markets are manipulating the markets. It's that simple.
Wake up, people. Your money, your investments, your retirements, your jobs and your homes are not safe as long as we allow nefarious characters such as Bernanke and Paulson to ply their evil trade.
NYSE Volume 4,133,543,000
NASDAQ Volume 2,755,434,750
Most of the dirty work of rigging the markets - to the upside - is done every morning at the repo window of the NY Fed, where today they granted $31 Billion of repurchase agreements to members, all intended to be plied in the open equity markets to distort and deceive the general public.
It is my duty to report that the Dow Jones Industrials were down more than 125 points at 2:00 pm ET, yet once again, closed narrowly on the downside.
Dow 13,671.92 -3.33; NASDAQ 2,750.86 -23.90; S&P 500 1,514.40 -1.48; NYSE Composite 10,029.55 +20.25
The Dow is easy to manipulate if you have virtually unlimited funds, as does the Fed. It is only 30 stocks, and many of them don't trade more than 3 or 4 million shares per session. It's a piece of cake if you have the top traders of the major brokerage firms doing your bidding in the market. And it's tough to lose money, too, when you buy puts against the same stocks you are buying, knowing all along that buying these stocks with the sole intent to move up the averages is a losing condition.
Yet they carry on, these market manipulators, not because they have the best interest of investors at heart. No, they engage in this activity because they are protecting their own bankrupt souls and institutions from exposure and financial implosion. They could care less about depositors, investors and the ordinary folk. They care only about profits on their own banks and finance companies, their bonuses and their yachts and fancy cars.
Declining issues held a narrow 17-14 edge over advancers at the close. New lows outpace new highs again, 313-270.
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Oil gained an astounding $3.36 to close at $90.46. Gold gained $5.40 to $771.00. Silver was up 32 cents to $13.91. Why, why, why is the Dow only down THREE POINTS?Edmonton, Vancouver, Bad Credit, Divorced, Bankruptcy OK. Apply online.
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The housing industry is in the tank, credit markets have effectively seized up, roughly 25% of companies reporting earnings are missing their revenue and per share estimates and many are issuing pessimistic guidance for the 4th quarter and 2008.
Why is the Dow down only three points? The Fed, the PPT, the officially-sanctioned President's Working Group on Financial Markets are manipulating the markets. It's that simple.
Wake up, people. Your money, your investments, your retirements, your jobs and your homes are not safe as long as we allow nefarious characters such as Bernanke and Paulson to ply their evil trade.
NYSE Volume 4,133,543,000
NASDAQ Volume 2,755,434,750
Wednesday, October 24, 2007
Crash Averted by PPT
The absolute garbage coming from the Federal Reserve in the form of jawboning, daily repurchase agreements and soon-to-be-announced round of rate cuts, have distorted and perverted the US equity markets to a point at which there should be no investor confidence whatsoever.
With the markets down significantly all day, the Fed and Treasury, under the guise of the Plunge Protection Team (PPT, or, more specifically, the President's Working Group on Financial Markets) sent stocks soaring off their lows and nearly into positive territory. The most egregious escapade was on the Dow, which went from being down 190 points at 2:15 to UNCHANGED at 3:15. Right around 3:10 ET, the index went absolutely parabolic, gaining 70 points in under four minutes.
There are no brokerages, investors or arbitrageurs on the planet who could have accomplished such a monumental market-moving feat other than the PPT, working in concert with the nation's largest brokerages, Merrill Lynch (more about them later), Goldman Sachs, et. al.
The fraud perpetrated upon the people of the United States is one which purports that our financial markets are safe and secure, when in fact they are propped up daily by infusions of cash from the Federal Reserve and brokerages working in concert.
Only some late day selling by honest market participants kept the markets from a complete recovery into positive territory. That the Dow finished the day anywhere near positive is an affront to every educated trader on the planet. I take these matters personally, since it is my money (and others) being toyed with by the Fed.
The unmitigated actions by the Fed of late have become so pronounced and obvious to seasoned market watchers as to be laughable, were it not for the fact that they are pumping billions of dollars into the markets to avoid a complete and utter capitulation of the equity markets. With the worldwide credit markets already in a state of seizure, the Fed and Treasury actions are a desperate propping up by a bunch who are effectively destroying the value of the US Dollar every day. They deserve nothing less than a monumental market crash followed by ouster from office and criminal proceedings.
It's sick. It should stop, but it won't. We're under a fascist regime, so all lies are allowed, even big ones that affect the lives of every man woman and child in the country and millions more who haven't even been born.
Dow 13,675.25 -0.98; NASDAQ 2,774.76 -24.50; S&P 500 1,515.88 Down 3.71; NYSE Composite 10,009.30 -31.69
Despite the outright rigging by the Fed, PPT, Goldman, etc., stocks sagged again on Wednesday as the overhang of the mortgage malaise continues to haunt any company even remotely associated with the housing industry.
Merrill Lynch, one closely aligned by the weight of their mortgage portfolio, got the ball rolling downhill before the markets opened, offering a third quarter report that the officers of the company wish had been chewed up by a friendly dog.
Merrill (MER) lost so much money this quarter it won't fit on the screen. They were pounded most of the day and according to reports, investors were withdrawing money from Merrill trading accounts as quickly as they could.
As sickening as the corrupt Fed intervention into today's (and every day's) market was, declines outnumbered advances 2 to 1 and new lows distanced themselves from new highs, 353-161. It's a very sick market which should have closed at or near the intraday lows.
Oil was up another $1.83 to $87.10, gold gained $2.50 to $765.60, and silver slipped 6 cents to $13.59
But, really, how did the Dow lose less than a point? The US economy is virtually on its knees. That's without a doubt, despite what the president, Ben Bernanke, Hank Paulson, or any other paid shill tells you.
NYSE Volume 3,803,483,500
NASDAQ Volume 2,739,684,250
With the markets down significantly all day, the Fed and Treasury, under the guise of the Plunge Protection Team (PPT, or, more specifically, the President's Working Group on Financial Markets) sent stocks soaring off their lows and nearly into positive territory. The most egregious escapade was on the Dow, which went from being down 190 points at 2:15 to UNCHANGED at 3:15. Right around 3:10 ET, the index went absolutely parabolic, gaining 70 points in under four minutes.
There are no brokerages, investors or arbitrageurs on the planet who could have accomplished such a monumental market-moving feat other than the PPT, working in concert with the nation's largest brokerages, Merrill Lynch (more about them later), Goldman Sachs, et. al.
The fraud perpetrated upon the people of the United States is one which purports that our financial markets are safe and secure, when in fact they are propped up daily by infusions of cash from the Federal Reserve and brokerages working in concert.
Only some late day selling by honest market participants kept the markets from a complete recovery into positive territory. That the Dow finished the day anywhere near positive is an affront to every educated trader on the planet. I take these matters personally, since it is my money (and others) being toyed with by the Fed.
The unmitigated actions by the Fed of late have become so pronounced and obvious to seasoned market watchers as to be laughable, were it not for the fact that they are pumping billions of dollars into the markets to avoid a complete and utter capitulation of the equity markets. With the worldwide credit markets already in a state of seizure, the Fed and Treasury actions are a desperate propping up by a bunch who are effectively destroying the value of the US Dollar every day. They deserve nothing less than a monumental market crash followed by ouster from office and criminal proceedings.
It's sick. It should stop, but it won't. We're under a fascist regime, so all lies are allowed, even big ones that affect the lives of every man woman and child in the country and millions more who haven't even been born.
Dow 13,675.25 -0.98; NASDAQ 2,774.76 -24.50; S&P 500 1,515.88 Down 3.71; NYSE Composite 10,009.30 -31.69
Despite the outright rigging by the Fed, PPT, Goldman, etc., stocks sagged again on Wednesday as the overhang of the mortgage malaise continues to haunt any company even remotely associated with the housing industry.
Merrill Lynch, one closely aligned by the weight of their mortgage portfolio, got the ball rolling downhill before the markets opened, offering a third quarter report that the officers of the company wish had been chewed up by a friendly dog.
Merrill (MER) lost so much money this quarter it won't fit on the screen. They were pounded most of the day and according to reports, investors were withdrawing money from Merrill trading accounts as quickly as they could.
As sickening as the corrupt Fed intervention into today's (and every day's) market was, declines outnumbered advances 2 to 1 and new lows distanced themselves from new highs, 353-161. It's a very sick market which should have closed at or near the intraday lows.
Oil was up another $1.83 to $87.10, gold gained $2.50 to $765.60, and silver slipped 6 cents to $13.59
But, really, how did the Dow lose less than a point? The US economy is virtually on its knees. That's without a doubt, despite what the president, Ben Bernanke, Hank Paulson, or any other paid shill tells you.
NYSE Volume 3,803,483,500
NASDAQ Volume 2,739,684,250
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