Forget the stock market for a moment and take a look at commodities. Focusing on the major precious metals, gold and silver, and America's favorite, crude oil, we can almost see the demand curve turning negative by the minute.
Commodity prices worldwide are collapsing with the precious metals leading the charge lower. There are no support levels or pivot points in the recent decline of both gold and silver. From their highs, gold is down 26%, silver, 47%, oil, 32%
Today's closing figures in New York were yet another indication of the commodity rout. Oil finished at $100.87, down $1.71. Gold slipped to $745.50, off $17.00. Silver melted down to $10.56, lower by 34 cents per ounce. Declining value in physical assets such as gold and silver is not an encouraging sign for any investor seeking growth opportunity.
Stocks on the day made all or most of their gains all in the final half hour. Markets were markedly low in the first half hour of trading. The Dow was down 170 points by 9:45 am. The rest of the session was spent short-covering and no doubt pumping by the inner circle of government interlocutors and their agents provacateurs in the market.
Dow 11,433.71 +164.79; NASDAQ 2,258.22 +29.52; S&P 500 1,249.05 +17.01; NYSE Composite 8,011.25 +3.99
As evidence of the manipulative nature of the day's trading, there were more decliners than advancers, 3459-2840. The gap between new lows and highs expanded magnificently, to 731 new lows to a pittance of new highs, 57. One should not be fooled by today's gains. This is a very weak market under incredible stress. There were underhanded interests at work on the 7th anniversary of the World Trade Center catastrophe to ensure that stocks traded higher.
Volume was light, with about 600 million fewer shares traded today than yesterday.
NYSE Volume 1,375,594,000
NASDAQ Volume 2,298,872,000
Thursday, September 11, 2008
Wednesday, September 10, 2008
Stocks Settle for Small Change; Metals Rocked
Following two days of extreme movement - one up, one down - the major indices settled into a positive trading range and held on to substantial gains before renewed selling interest in the final hour turned many stocks lower.
Dow 11,268.92 +38.19; NASDAQ 2,228.70 +18.89; S&P 500 1,232.04 +7.53; NYSE Composite 7,957.26 +86.11
The markets traded in herky-jerky fashion throughout the session but retained a positive bias. The massive sell-off into the close, however, had many shaking their heads.
Devoid of any consequential economic reports, traders were forced to deal with the one big headline of the day, as embattled Lehman Brothers (LEH, 7.24, -0.55) issued an earnings pre-announcement which was far worse than anyone expected. The company said it would show a third quarter loss of $3.9 billion, or $5.82 per share and would reduce its annual dividend from 68 cents to 5 cents. Lehman also announced the sale or partial divestiture of much of its other holdings.
Such news was expected, though few thought the devastation would be so complete. Lehman had traded above $60 earlier this year. The stock, like so many others in the financial arena, has lost a massive amount of value - nearly 90%.
With the bailouts of Fannie Mae and Freddie Mac still fresh in the minds of investors, Lehman's fall from grace was yet another dose of bad news for a market that can hardly bear any more.
On the day, gainers managed a narrow edge over losers, 3473-2797. New highs were scarce, with only 66 firms recording 52-week highs. New lows however, were in abundance. There were 545 of those.
More evidence of the popping of the commodities bubble appeared, as gold lost massively, down $29.50, dropping to $762.50 per ounce. Silver also was hammered, sliding 84 cents, to $10.89. Oil fell as well on futures markets, with a barrel of crude worth 68 cents less than yesterday, settling at $102.58 per barrel.
The liquidity crisis continues. Everything, from real estate to stocks to grandpa's coin collection are being sold off as fast as humanly possible with no end in sight. By the time most average folks get an idea that what they own is not nearly worth what they paid, it's likely to be too late and another round of forced divestiture will ensue.
Happy days... not here, not now.
NYSE Volume 1,549,186,000
NASDAQ Volume 2,288,587,000
Dow 11,268.92 +38.19; NASDAQ 2,228.70 +18.89; S&P 500 1,232.04 +7.53; NYSE Composite 7,957.26 +86.11
The markets traded in herky-jerky fashion throughout the session but retained a positive bias. The massive sell-off into the close, however, had many shaking their heads.
Devoid of any consequential economic reports, traders were forced to deal with the one big headline of the day, as embattled Lehman Brothers (LEH, 7.24, -0.55) issued an earnings pre-announcement which was far worse than anyone expected. The company said it would show a third quarter loss of $3.9 billion, or $5.82 per share and would reduce its annual dividend from 68 cents to 5 cents. Lehman also announced the sale or partial divestiture of much of its other holdings.
Such news was expected, though few thought the devastation would be so complete. Lehman had traded above $60 earlier this year. The stock, like so many others in the financial arena, has lost a massive amount of value - nearly 90%.
With the bailouts of Fannie Mae and Freddie Mac still fresh in the minds of investors, Lehman's fall from grace was yet another dose of bad news for a market that can hardly bear any more.
On the day, gainers managed a narrow edge over losers, 3473-2797. New highs were scarce, with only 66 firms recording 52-week highs. New lows however, were in abundance. There were 545 of those.
More evidence of the popping of the commodities bubble appeared, as gold lost massively, down $29.50, dropping to $762.50 per ounce. Silver also was hammered, sliding 84 cents, to $10.89. Oil fell as well on futures markets, with a barrel of crude worth 68 cents less than yesterday, settling at $102.58 per barrel.
The liquidity crisis continues. Everything, from real estate to stocks to grandpa's coin collection are being sold off as fast as humanly possible with no end in sight. By the time most average folks get an idea that what they own is not nearly worth what they paid, it's likely to be too late and another round of forced divestiture will ensue.
Happy days... not here, not now.
NYSE Volume 1,549,186,000
NASDAQ Volume 2,288,587,000
Tuesday, September 9, 2008
Double Dose of Reality for Wall Street; S&P at 27-Month Low
Stocks rose briefly Tuesday morning, but a pair of economic reports on Pending Home Sales and Wholesale Trade and Inventories sent traders running for the sell buttons.
Word from the housing industry was as dreary as ever. The National Association of Realtors' (NAR) index for pending sales of existing homes dropped 3.2% to 86.5 from 89.4 in June.
At the same time that report hit the street - 10:00 am EDT - the wholesale trade numbers showed a marked increase in inventory levels and a slowing of sales in July.
The double-whammy hit Wall Street like a ton of bricks as the NASDAQ dropped below its July bottom and the S&P broke down to a new 2008 low and closed the session at its lowest level since June 2006.
Dow 11,230.73 -280.01; NASDAQ 2,209.81 -59.95; S&P 500 1,224.51 -43.28; NYSE Composite 7,871.15 -297.47
While the Dow held onto a mere 10 points gained from Monday, the losses in the other indices were severe, especially in the NASDAQ and NYSE Composite. The NASDAQ, which was up nearly 14 points on Monday, lost more than 4 times that on Tuesday, dropping almost 60 points. The NYSE Composite lost more than double what it had gained in the previous session. Those two indices constitute the broadest gauges, covering over 6000 individual stocks between them.
Market internals verified that the selling was indeed broad-based and rampant. Gainers were overwhelmed by more than 5-1 by declining issues, with the losers ahead by a score of 5303-1006. New lows continued to swell as new highs retreated. New lows led, 574-103.
The only safe haven was in bonds, which gained slightly, while commodities were blasted lower once more. Crude oil continued its precipitous decline, losing $3.08, to $103.26. Gold shed another $10.50, shattering the psychologically-important $800 barrier, closing in New York at $792.00 per ounce. Silver slid below $12.00, losing 35 cents, to $11.92.
With seemingly nothing but more bad news heading to Wall Street, there seems to be nothing more than investor resolve to keep markets from an all-out rout. Volume has not returned following the Labor Day recess, igniting fears that many market participants have already left for more guarded environs. The past two days' volume have been mirror images, and have been in the moderate range.
Prices, wages and the value of all assets are all now encountering the beginning of a deflationary spiral which will lead to more misery months ahead.
NYSE Volume 1,639,261,000
NASDAQ Volume 2,614,386,000
Word from the housing industry was as dreary as ever. The National Association of Realtors' (NAR) index for pending sales of existing homes dropped 3.2% to 86.5 from 89.4 in June.
At the same time that report hit the street - 10:00 am EDT - the wholesale trade numbers showed a marked increase in inventory levels and a slowing of sales in July.
The double-whammy hit Wall Street like a ton of bricks as the NASDAQ dropped below its July bottom and the S&P broke down to a new 2008 low and closed the session at its lowest level since June 2006.
Dow 11,230.73 -280.01; NASDAQ 2,209.81 -59.95; S&P 500 1,224.51 -43.28; NYSE Composite 7,871.15 -297.47
While the Dow held onto a mere 10 points gained from Monday, the losses in the other indices were severe, especially in the NASDAQ and NYSE Composite. The NASDAQ, which was up nearly 14 points on Monday, lost more than 4 times that on Tuesday, dropping almost 60 points. The NYSE Composite lost more than double what it had gained in the previous session. Those two indices constitute the broadest gauges, covering over 6000 individual stocks between them.
Market internals verified that the selling was indeed broad-based and rampant. Gainers were overwhelmed by more than 5-1 by declining issues, with the losers ahead by a score of 5303-1006. New lows continued to swell as new highs retreated. New lows led, 574-103.
The only safe haven was in bonds, which gained slightly, while commodities were blasted lower once more. Crude oil continued its precipitous decline, losing $3.08, to $103.26. Gold shed another $10.50, shattering the psychologically-important $800 barrier, closing in New York at $792.00 per ounce. Silver slid below $12.00, losing 35 cents, to $11.92.
With seemingly nothing but more bad news heading to Wall Street, there seems to be nothing more than investor resolve to keep markets from an all-out rout. Volume has not returned following the Labor Day recess, igniting fears that many market participants have already left for more guarded environs. The past two days' volume have been mirror images, and have been in the moderate range.
Prices, wages and the value of all assets are all now encountering the beginning of a deflationary spiral which will lead to more misery months ahead.
NYSE Volume 1,639,261,000
NASDAQ Volume 2,614,386,000
Monday, September 8, 2008
Fannie, Freddie Bailout Spurs Big Rally
Stocks rallied on Wall Street Monday after the Bush administration - via the Treasury Dept. - decided to take over troubled mortgage financiers Fannie Mae and Freddie Mac, though informed opinion sees the bailout not as the end of the credit crisis, but rather as just another, potentially more dangerous, chapter in the saga. (note: in the opinion article referenced, this phrase: "That is because these two banks are responsible for $5.3 billion (3.7 billion euros) of America's $12 billion (8.4 billion euro) total mortgage debt. That corresponds to one third of America's gross domestic product." is incorrect. "billions" should be "trillions".)
All assumptions aside, Fannie and Freddie had to be bailed out to avert what would have amounted to a worldwide credit implosion or meltdown of the entire financial system, and that simply could not be allowed to happen. In the end, the takeover by the government amounts to nothing more than thinly-veiled socialism by a government run by people who condemn the very mention of the word.
Surely, the maneuver to salvage what's left of our banking institutions is a noble one, although its likely to be clumsy in execution. If nothing else, the administration can be seen clearly for what it really is: a proxy and shoulder for the failures and overreach of Wall Street greed. These people are hypocrites of the highest order. Sadly, they are the very people entrusted with our nation's highest leadership positions.
Still, the stock market took the news with the same aplomb that a thirsty baby greets the warm nipple of a milk bottle. Markets worldwide rallied on the news.
Dow 11,510.74 +290.43; NASDAQ 2,269.76 +13.88; S&P 500 1,267.79 +25.48; NYSE Composite 8,168.62 +134.86
In other words, to paraphrase a joke told by the Republican VP presidential candidate, Sarah Palin, the lipstick was applied liberally to this pig. This was a highly politically-timed move by Republicans desperate to elect John McCain and salvage an already-Democratically-controlled congress.
While the headline numbers were impressive, the rally was not as broad-based as many may assume. The NASDAQ actually fell into negative territory during the session, and advancers were not dominant over decliners, leading by less than a 2-1 margin, 3913-2334. New lows raced ahead of new highs, 284-134.
Commodities moved in an unimpressive fashion. Oil gained 11 cents to $106.34. Gold lost 30 cents to close in New York at $802.50. Silver lost 26 cents, at $12.07 the ounce, perilously close to a key support and emotional price level.
The bailout of the mortgage market is by no means an end, but rather a necessary step by a desperate, entrenched government about to lose power. If there is any sanity left in this country, Republicans will be shown the door by voters in November.
NYSE Volume 1,768,852,000
NASDAQ Volume 2,600,347,000
All assumptions aside, Fannie and Freddie had to be bailed out to avert what would have amounted to a worldwide credit implosion or meltdown of the entire financial system, and that simply could not be allowed to happen. In the end, the takeover by the government amounts to nothing more than thinly-veiled socialism by a government run by people who condemn the very mention of the word.
Surely, the maneuver to salvage what's left of our banking institutions is a noble one, although its likely to be clumsy in execution. If nothing else, the administration can be seen clearly for what it really is: a proxy and shoulder for the failures and overreach of Wall Street greed. These people are hypocrites of the highest order. Sadly, they are the very people entrusted with our nation's highest leadership positions.
Still, the stock market took the news with the same aplomb that a thirsty baby greets the warm nipple of a milk bottle. Markets worldwide rallied on the news.
Dow 11,510.74 +290.43; NASDAQ 2,269.76 +13.88; S&P 500 1,267.79 +25.48; NYSE Composite 8,168.62 +134.86
In other words, to paraphrase a joke told by the Republican VP presidential candidate, Sarah Palin, the lipstick was applied liberally to this pig. This was a highly politically-timed move by Republicans desperate to elect John McCain and salvage an already-Democratically-controlled congress.
While the headline numbers were impressive, the rally was not as broad-based as many may assume. The NASDAQ actually fell into negative territory during the session, and advancers were not dominant over decliners, leading by less than a 2-1 margin, 3913-2334. New lows raced ahead of new highs, 284-134.
Commodities moved in an unimpressive fashion. Oil gained 11 cents to $106.34. Gold lost 30 cents to close in New York at $802.50. Silver lost 26 cents, at $12.07 the ounce, perilously close to a key support and emotional price level.
The bailout of the mortgage market is by no means an end, but rather a necessary step by a desperate, entrenched government about to lose power. If there is any sanity left in this country, Republicans will be shown the door by voters in November.
NYSE Volume 1,768,852,000
NASDAQ Volume 2,600,347,000
Friday, September 5, 2008
Government Bailout (or, The PPT Rides Again)
Just when the whole world thought everything was going to hell in a handbasket, the manipulative meddlers of the financial underworld changed the tune.
Friday morning at 8:30 am, the Labor Department reported that US Non-farm payrolls shrunk by another 84,000 jobs, and the unemployment rate shot up to 6.1%, a five year high.
The news stories keep using the word "unexpectedly" when referring to the data, as though nobody thought that the economy would lose jobs for the 8th straight month or that the unemployment rate was rising. It's amazing that the mainstream media still considers most of the reading and viewing public stupid.
News flash for the AP, Reuters and the networks. We're not all stupid and some of us refuse to be fooled by innuendo, polls, charts, propaganda and other nefarious methods of fascist propaganda. Go tell it to someone who doesn't know any better. Oh, right, you do... worldwide.
In any case, it was another setback for stocks, or so it would seem as all of the major indices dropped into negative territory as soon as the opening bell sounded at 9:30. By 11:00 am, the Dow, S&P and NASDAQ had all shed more than 1% in value. It was beginning to look like another in the continuing saga of the slumping US stock market.
Of course, what with the incredible rock star status achieved by vice presidential candidate Sarah Palin over the past few days at the RNC, the government gurus simply could not have that, so up went stocks, thanks to our friends at the President's Working Group on Financial Markets (aka, the PPT, Plunge Protection Team) and their proxies in the market: Goldman Sachs, Merrill Lynch, et. al.
By 1:00, all was well. The indices sporting just minor losses or gains, the stage was set to send every pinstriped suit-wearing, fundamentals-are-sound-speaking, broker and dealer on the street home happy as a lark.
By 2:40, all of the indices were into positive ground. The Dow, just before 3:00, was actually up 40 points. All that nonsense about lost jobs, a worsening housing condition and a profit warning from Nokia was put on the back burner. We've got a president to elect, and Wall Street want the McCain/Palin ticket, no doubt about it.
To get those two elected, the markets cannot sell off. They must maintain their positive posture and maybe even spark off a rally or two before November. Happy days... they're here again, folks.
At 3:10 pm: Dow 11,220.96 +32.73; NASDAQ 2,255.88 -3.16; S&P 500 1,242.31 +5.48; NYSE Composite 8,033.76 +25.51
It's rather disheartening and discouraging to those who believe in things like the constitution, rule of law, free market economics and honest elections to see such shenanigans continuing, but we, the American people, have been and will continue to be bought and sold by and for corporate interests, first, last and at every moment in between.
Unless we stand up and demand change.
For the day, losers beat out gainers, 3202-2977. New lows expanded their gap over new highs, to 479-47. That last figure is significant. The new lows have been growing by the day all week, while new highs are at extremmely depressed levels. Despite Friday's somewhat neutral headlline numbers, the internals are indicative of a market poised for further deteroration.
Volume continued at levels just slightly better than last week's anemic performance. The outright lack of trading interest is a collateral outcome of the credit crisis and does not seem to have any opportunity to abate.
Commodities continued to reinforce the defation argument. Oil lost another $1.66, to $106.23. Gold fell 40 cents, to $802.80, while silver lost 62 cents, closing at a multi-month low of $12.33.
NYSE Volume 1,199,665,000
NASDAQ Volume 2,263,084,000
Friday morning at 8:30 am, the Labor Department reported that US Non-farm payrolls shrunk by another 84,000 jobs, and the unemployment rate shot up to 6.1%, a five year high.
The news stories keep using the word "unexpectedly" when referring to the data, as though nobody thought that the economy would lose jobs for the 8th straight month or that the unemployment rate was rising. It's amazing that the mainstream media still considers most of the reading and viewing public stupid.
News flash for the AP, Reuters and the networks. We're not all stupid and some of us refuse to be fooled by innuendo, polls, charts, propaganda and other nefarious methods of fascist propaganda. Go tell it to someone who doesn't know any better. Oh, right, you do... worldwide.
In any case, it was another setback for stocks, or so it would seem as all of the major indices dropped into negative territory as soon as the opening bell sounded at 9:30. By 11:00 am, the Dow, S&P and NASDAQ had all shed more than 1% in value. It was beginning to look like another in the continuing saga of the slumping US stock market.
Of course, what with the incredible rock star status achieved by vice presidential candidate Sarah Palin over the past few days at the RNC, the government gurus simply could not have that, so up went stocks, thanks to our friends at the President's Working Group on Financial Markets (aka, the PPT, Plunge Protection Team) and their proxies in the market: Goldman Sachs, Merrill Lynch, et. al.
By 1:00, all was well. The indices sporting just minor losses or gains, the stage was set to send every pinstriped suit-wearing, fundamentals-are-sound-speaking, broker and dealer on the street home happy as a lark.
By 2:40, all of the indices were into positive ground. The Dow, just before 3:00, was actually up 40 points. All that nonsense about lost jobs, a worsening housing condition and a profit warning from Nokia was put on the back burner. We've got a president to elect, and Wall Street want the McCain/Palin ticket, no doubt about it.
To get those two elected, the markets cannot sell off. They must maintain their positive posture and maybe even spark off a rally or two before November. Happy days... they're here again, folks.
At 3:10 pm: Dow 11,220.96 +32.73; NASDAQ 2,255.88 -3.16; S&P 500 1,242.31 +5.48; NYSE Composite 8,033.76 +25.51
It's rather disheartening and discouraging to those who believe in things like the constitution, rule of law, free market economics and honest elections to see such shenanigans continuing, but we, the American people, have been and will continue to be bought and sold by and for corporate interests, first, last and at every moment in between.
Unless we stand up and demand change.
For the day, losers beat out gainers, 3202-2977. New lows expanded their gap over new highs, to 479-47. That last figure is significant. The new lows have been growing by the day all week, while new highs are at extremmely depressed levels. Despite Friday's somewhat neutral headlline numbers, the internals are indicative of a market poised for further deteroration.
Volume continued at levels just slightly better than last week's anemic performance. The outright lack of trading interest is a collateral outcome of the credit crisis and does not seem to have any opportunity to abate.
Commodities continued to reinforce the defation argument. Oil lost another $1.66, to $106.23. Gold fell 40 cents, to $802.80, while silver lost 62 cents, closing at a multi-month low of $12.33.
NYSE Volume 1,199,665,000
NASDAQ Volume 2,263,084,000
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