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.
Friday, May 14, 2010
Thursday, May 13, 2010
All About Today's Reversal, And Why It Matters
The downturn in equity markets today should not have come as a surprise to anybody who understands charts and amrket dynamics.
A nice chart of the Dow covering the past six months reveals the condition. The market is sitting right on its 50-day moving average with no clear direction, though lower seems to be the most likely move as days progress.
Recall the events of the past 5 trading days: After the "flash crash" (thanks to the geniuses at CNBC for giving it a nickname) of last Thursday, the Dow sank on Friday, had a sharp opening gap up and maintained that stature on Monday, dipped a bit on Tuesday, rallied above the 50-day moving average on Wednesday, and today closed below that important measuring stick.
Now, there's an easier way to look at these events, especially if you're a cynical observer such as I. After scooping up shares at the bottom on Thursday and Friday, the power players behind the scenes made fast cash on Monday, sold a little more on Tuesday, sucked in more late-comers on Wednesday and now are selling in earnest. The moves are being made in conjunction with various and many stock option plays, the May variety which expire on Friday, the 21st, being the most active.
Depending on how badly these power players - the same group likely behind the flash crash and other recent organized selling - want to hit the little guys on the other end of trades - and how soon - this little episode could take on some very interesting dimensions. They might be over-weighted on the long end, or they could be itching for another downdraft. The latter would make more sense from a chartist's perspective. Once a market breaks through a key level - like the 50-day MA - the corresponding next moves are usually more of the same, and this move was one of significantly violent quality, so the downside appears to be the more obvious choice.
Of course, these insiders are a savvy bunch and they've likely already discounted the idea that the market should behave in patterned ways, so they just might keep stocks chugging along, mirroring the 50-day until options expire. The cynical view is that they bought close to the bottom and are slowly selling at fat profits presently, though, and that patten should continue.
At the end of today's trading, there was a rush for the exits. Stocks closed at their lows of the session, which is one of the more profound daily indicators one can find. It indicates a real reluctance to maintain positions and even less commitment to any new purchases.
Dow 10,782.95, -113.96 (1.05%)
NASDAQ 2,394.36, -30.66 (1.26%)
S&P 500 1,157.43, -14.24 (1.22%)
NYSE Composite 7,234.37, -81.99 (1.12%)
On the day, decliners took the advantage over advancing issues, 4193-2349. There were 192 new highs to a paltry 53 new lows. This is an interesting development. The market is holding judgement in abeyance, perhaps awaiting some catalyst, or just marking time until the next move lower. Volume was down for the third consecutive day, another indication that the markets are poised to head even lower, likely back to test the Friday intra-day low of 10,221.50.
NYSE Volume 5,477,719,500.00
NASDAQ Volume 2,321,865,500.00
Commodity prices continued to cool. Crude oil maintained its relentless slide, losing another $1.25 per barrel, to $74.40. Even gold bugs were either spooked or taking profits, sending the price down by $13.90 per ounce, to $1,228.80. Silver also ran down 16 cents, to $19.48.
Much of today's selling was blamed on some interesting and disturbing comments from mainstream retailer Kohl's, which issued 2nd quarter fiscal 2010 guidance that fell short of expectations and noted that the average amount per transaction was down in the most recent quarter. Macy's also cited the same metric, days ago. With retailers cautious about consumer spending, they are acting as the canaries in the coal mine, warning that the current recovery - if one exists at all - may not be sustained. If they're right, stocks will find no bottom in the near term and the remainder of the year may be a wipeout for many corporations.
It's interesting to note that the January indicator predicted that 2010 would be a down year for stocks and maintains a solid record of correctly predicting the future economy, somewhere in the range of 85% accurate. Since the major indices are right about where they began the year, that long-ago (4 months) indicator overhangs the market like the sword of Damocles.
While Wall Street pondered its own fate, oil continues to surge from beneath the ocean into the Gulf of Mexico. With the disaster now entering its 4th week without resolution, the slick continues to grow and the oil continues to flow. That oil will go somewhere, eventually, but the drama is playing out in what appears to be a slow-motion nightmare on Bourbon Street.
At the end of it all, expect to see the end of the rig company, Transocean, drowned in a sea of lawsuits. The CEO of BP, Tony Hayward, almost certainly will be sacked, if the company even survives. As for Halliburton, the love-child of former US VP, that company seems to be born under a lucky star. The damage to the Gulf waters, the shorelands and the wetlands may be unbearable and unresolved for years to come.
A nice chart of the Dow covering the past six months reveals the condition. The market is sitting right on its 50-day moving average with no clear direction, though lower seems to be the most likely move as days progress.
Recall the events of the past 5 trading days: After the "flash crash" (thanks to the geniuses at CNBC for giving it a nickname) of last Thursday, the Dow sank on Friday, had a sharp opening gap up and maintained that stature on Monday, dipped a bit on Tuesday, rallied above the 50-day moving average on Wednesday, and today closed below that important measuring stick.
Now, there's an easier way to look at these events, especially if you're a cynical observer such as I. After scooping up shares at the bottom on Thursday and Friday, the power players behind the scenes made fast cash on Monday, sold a little more on Tuesday, sucked in more late-comers on Wednesday and now are selling in earnest. The moves are being made in conjunction with various and many stock option plays, the May variety which expire on Friday, the 21st, being the most active.
Depending on how badly these power players - the same group likely behind the flash crash and other recent organized selling - want to hit the little guys on the other end of trades - and how soon - this little episode could take on some very interesting dimensions. They might be over-weighted on the long end, or they could be itching for another downdraft. The latter would make more sense from a chartist's perspective. Once a market breaks through a key level - like the 50-day MA - the corresponding next moves are usually more of the same, and this move was one of significantly violent quality, so the downside appears to be the more obvious choice.
Of course, these insiders are a savvy bunch and they've likely already discounted the idea that the market should behave in patterned ways, so they just might keep stocks chugging along, mirroring the 50-day until options expire. The cynical view is that they bought close to the bottom and are slowly selling at fat profits presently, though, and that patten should continue.
At the end of today's trading, there was a rush for the exits. Stocks closed at their lows of the session, which is one of the more profound daily indicators one can find. It indicates a real reluctance to maintain positions and even less commitment to any new purchases.
Dow 10,782.95, -113.96 (1.05%)
NASDAQ 2,394.36, -30.66 (1.26%)
S&P 500 1,157.43, -14.24 (1.22%)
NYSE Composite 7,234.37, -81.99 (1.12%)
On the day, decliners took the advantage over advancing issues, 4193-2349. There were 192 new highs to a paltry 53 new lows. This is an interesting development. The market is holding judgement in abeyance, perhaps awaiting some catalyst, or just marking time until the next move lower. Volume was down for the third consecutive day, another indication that the markets are poised to head even lower, likely back to test the Friday intra-day low of 10,221.50.
NYSE Volume 5,477,719,500.00
NASDAQ Volume 2,321,865,500.00
Commodity prices continued to cool. Crude oil maintained its relentless slide, losing another $1.25 per barrel, to $74.40. Even gold bugs were either spooked or taking profits, sending the price down by $13.90 per ounce, to $1,228.80. Silver also ran down 16 cents, to $19.48.
Much of today's selling was blamed on some interesting and disturbing comments from mainstream retailer Kohl's, which issued 2nd quarter fiscal 2010 guidance that fell short of expectations and noted that the average amount per transaction was down in the most recent quarter. Macy's also cited the same metric, days ago. With retailers cautious about consumer spending, they are acting as the canaries in the coal mine, warning that the current recovery - if one exists at all - may not be sustained. If they're right, stocks will find no bottom in the near term and the remainder of the year may be a wipeout for many corporations.
It's interesting to note that the January indicator predicted that 2010 would be a down year for stocks and maintains a solid record of correctly predicting the future economy, somewhere in the range of 85% accurate. Since the major indices are right about where they began the year, that long-ago (4 months) indicator overhangs the market like the sword of Damocles.
While Wall Street pondered its own fate, oil continues to surge from beneath the ocean into the Gulf of Mexico. With the disaster now entering its 4th week without resolution, the slick continues to grow and the oil continues to flow. That oil will go somewhere, eventually, but the drama is playing out in what appears to be a slow-motion nightmare on Bourbon Street.
At the end of it all, expect to see the end of the rig company, Transocean, drowned in a sea of lawsuits. The CEO of BP, Tony Hayward, almost certainly will be sacked, if the company even survives. As for Halliburton, the love-child of former US VP, that company seems to be born under a lucky star. The damage to the Gulf waters, the shorelands and the wetlands may be unbearable and unresolved for years to come.
Wednesday, May 12, 2010
Bump and Grind and All is Golden
Monday was the bump higher, Tuesday and Wednesday turned out to be significant grinders as investors regained confidence and continued to scoop up stocks since there's nothing else to buy besides maybe gold and treasuries, and the latter isn't granting much of a return these days.
Speculation is back in vogue, now that the latest crisis has passed from public view, though there will certainly be issues going forward, as always.
Dow 10,896.91, +148.65 (1.38%)
NASDAQ 2,425.02, +49.71 (2.09%)
S&P 500 1,171.67, +15.88 (1.37%)
NYSE Composite 7,316.36, +94.70 (1.31%)
Once again, advancing issues finished far ahead of decliners, 5470-1122; 195 new highs outpaced just 58 new lows. As much as the rally seemed vibrant and flourishing, volume declined for the third straight day, reinforcing the notion that while all the attention was focused on stocks going higher, there were wise guys taking some slivers of profit while the herd pushed to the extremes.
NYSE Volume 5,929,432,500.00
NASDAQ Volume 2,308,404,000.00
Gold continued to dominate the commodity space, breaking through to fresh all-time highs, another sign that global economies aren't quite as fit as their leaders would have you believe. The shiny stuff was up another $22.80, to $1,242.70 on the day. Silver gained 37 cents, to finish at $19.64. The metals have parted ways with oil significantly this week, as crude fell 72 cents to $75.65, while motorists are still anxiously awaiting a similar price reduction at the pump.
Despite the coming arrival of summer, oil, if the price were not so ham-handedly manipulated, could reach even lower levels around the $60/barrel mark by mid-July, though the sheiks and barons probably won't allow that to occur, instead focusing on limiting supply and choking consumers. Gold will continue to rocket higher in coming months unless sovereign economies actually discover fiscal integrity - an unlikely occurrence.
Speculation is back in vogue, now that the latest crisis has passed from public view, though there will certainly be issues going forward, as always.
Dow 10,896.91, +148.65 (1.38%)
NASDAQ 2,425.02, +49.71 (2.09%)
S&P 500 1,171.67, +15.88 (1.37%)
NYSE Composite 7,316.36, +94.70 (1.31%)
Once again, advancing issues finished far ahead of decliners, 5470-1122; 195 new highs outpaced just 58 new lows. As much as the rally seemed vibrant and flourishing, volume declined for the third straight day, reinforcing the notion that while all the attention was focused on stocks going higher, there were wise guys taking some slivers of profit while the herd pushed to the extremes.
NYSE Volume 5,929,432,500.00
NASDAQ Volume 2,308,404,000.00
Gold continued to dominate the commodity space, breaking through to fresh all-time highs, another sign that global economies aren't quite as fit as their leaders would have you believe. The shiny stuff was up another $22.80, to $1,242.70 on the day. Silver gained 37 cents, to finish at $19.64. The metals have parted ways with oil significantly this week, as crude fell 72 cents to $75.65, while motorists are still anxiously awaiting a similar price reduction at the pump.
Despite the coming arrival of summer, oil, if the price were not so ham-handedly manipulated, could reach even lower levels around the $60/barrel mark by mid-July, though the sheiks and barons probably won't allow that to occur, instead focusing on limiting supply and choking consumers. Gold will continue to rocket higher in coming months unless sovereign economies actually discover fiscal integrity - an unlikely occurrence.
Tuesday, May 11, 2010
Hot Flashes and Mood Swings; Gold Shines
Financial markets continued to behave in disorganized, semi-rational manners.
Prior to the opening bell, stock futures were pointing toward a heavy downdraft, with Dow futures predicting close to a 100-point gap lower at the open and that is roughly where it stood, making what would turn out to be the low point of the day just five minutes into the trading day.
Stocks gained steadily until reaching a peak just before 2:00 pm and then relented, sliding steadily downward into the close. This is the second day in a row which has witnessed large opening gaps - Monday's to the upside and of greater magnitude, today's lower - which benefit only the most adroit professionals and are a bane to the small investor.
Volatility, though subdued when compared to the final two days of the prior week, remains at elevated levels and volume dropped off for the second straight session.
What the markets are attempting to digest is a spate of conflicting events concerning Europe and the bailout of Greece, changing politics in Great Britain, the continuing unnatural disaster from the oil spill in the Gulf of Mexico and a reft of economic data and information that is not easily deciphered.
Housing and unemployment remain as the great contradictory indicators to a general recovery. Without a meaningful rebound in home-buying and employment, any hope for sustained prosperity seem overblown. The nearly $1 trillion thrown at the monetary crisis in Europe is being regarded widely as nothing more than a temporary fix with structural problems as yet not addressed.
The huge bulk of unfunded future liabilities mostly in the form of pensions and health services are keeping a lid on the economies of European nations as well as the United States. Massive government current deficits are already strangling state budgets. In New York, efforts are underway to overturn portions of the state budget which calls for one-day-a-week furloughs for state employees. The budget and the measure was passed on Monday night by the state legislature, at the urging of lame-duck governor David Patterson.
Meanwhile, hearigs were underway in washington, D.C. and New Orleans, concerning Thursday's stock market "flash crash" and the events leading up to an immediately following the oil rig explosion which caused the continuing oil spill of the Louisiana coastline (see video at end of this post).
Dow 10,748.26, -36.88 (0.34%)
NASDAQ 2,375.31, +0.64 (0.03%)
S&P 500 1,155.79, -3.94 (0.34%)
NYSE Composite 7,221.66, -35.96 (0.50%)
Advancing issues outpaced declines on the day, 3719-2812; new highs surpassed new lows, 166-62. Volume was lower for the second straight session.
NYSE Volume 6,583,789,500.00
NASDAQ Volume 2,484,207,000.00
The big winner on the day was gold, which shot up $19.50, to $1,219.90, closing at an all-time high. Silver tagged along, rising 74 cents, to $19.27. Crude oil futures finished the day 43 cents to the downside, at $76.37.
What's moving markets, now that second quarter earnings releases have been pretty much digested, are the markets themselves. Momentum trading is in vogue as equities seek direction. It's a turbulent time not only for stocks, but for stock-watchers as well.
Prior to the opening bell, stock futures were pointing toward a heavy downdraft, with Dow futures predicting close to a 100-point gap lower at the open and that is roughly where it stood, making what would turn out to be the low point of the day just five minutes into the trading day.
Stocks gained steadily until reaching a peak just before 2:00 pm and then relented, sliding steadily downward into the close. This is the second day in a row which has witnessed large opening gaps - Monday's to the upside and of greater magnitude, today's lower - which benefit only the most adroit professionals and are a bane to the small investor.
Volatility, though subdued when compared to the final two days of the prior week, remains at elevated levels and volume dropped off for the second straight session.
What the markets are attempting to digest is a spate of conflicting events concerning Europe and the bailout of Greece, changing politics in Great Britain, the continuing unnatural disaster from the oil spill in the Gulf of Mexico and a reft of economic data and information that is not easily deciphered.
Housing and unemployment remain as the great contradictory indicators to a general recovery. Without a meaningful rebound in home-buying and employment, any hope for sustained prosperity seem overblown. The nearly $1 trillion thrown at the monetary crisis in Europe is being regarded widely as nothing more than a temporary fix with structural problems as yet not addressed.
The huge bulk of unfunded future liabilities mostly in the form of pensions and health services are keeping a lid on the economies of European nations as well as the United States. Massive government current deficits are already strangling state budgets. In New York, efforts are underway to overturn portions of the state budget which calls for one-day-a-week furloughs for state employees. The budget and the measure was passed on Monday night by the state legislature, at the urging of lame-duck governor David Patterson.
Meanwhile, hearigs were underway in washington, D.C. and New Orleans, concerning Thursday's stock market "flash crash" and the events leading up to an immediately following the oil rig explosion which caused the continuing oil spill of the Louisiana coastline (see video at end of this post).
Dow 10,748.26, -36.88 (0.34%)
NASDAQ 2,375.31, +0.64 (0.03%)
S&P 500 1,155.79, -3.94 (0.34%)
NYSE Composite 7,221.66, -35.96 (0.50%)
Advancing issues outpaced declines on the day, 3719-2812; new highs surpassed new lows, 166-62. Volume was lower for the second straight session.
NYSE Volume 6,583,789,500.00
NASDAQ Volume 2,484,207,000.00
The big winner on the day was gold, which shot up $19.50, to $1,219.90, closing at an all-time high. Silver tagged along, rising 74 cents, to $19.27. Crude oil futures finished the day 43 cents to the downside, at $76.37.
What's moving markets, now that second quarter earnings releases have been pretty much digested, are the markets themselves. Momentum trading is in vogue as equities seek direction. It's a turbulent time not only for stocks, but for stock-watchers as well.
| Oil spill video: Times-Picayune Tuesday update |
Monday, May 10, 2010
Euro Bailout Revives Markets... and How!
If anyone was thinking the markets couldn't get any more extreme than they did last week, Monday morning's festival of funding, courtesy of the European Union and the IMF, to the tune of nearly $1 Trillion.
According the the Wall Street Journal:
Most of the gains came right at the open, which kept individual investors shut out for the most part. The major indices gapped up within 5 minutes of the open by roughly 4%.
Following Thursday's "magic moments," which witnessed a drop and subsequent rebound on the Dow in a matter of less than 15 minutes, market observers have plenty reason for skepticism. After Bob Brinker called the Thursday move, "manipulation," veteran trader Art Cashin, head of floor operations at UBS, said live on CNBC, referring to Friday's non-farm payroll report, "188,000 was a guess by the Bureau of Labor Statistics." Further, he said, "keep your eye on the referee. This game isn't on the up and up," referring to possibly the entire market.
All of this market volatility should come as no surprise to anybody who's been following the financial crisis over the past 2 1/2 - 3 years. Nations, and their political leaders, have a vested interest in keeping their worthless currencies in play, regardless the consequences down the road. Mountains of debt have been piled upon other mountains of debt around the world. The EU bailout was a long time in coming and a hard morsel to chew on for beleaguered leaders. Essentially, they had no choice, though the future seems as uncertain as ever, if not more so.
Stocks bounded higher in Europe and the US, with the average index gaining somewhere between 3 and 5 percent. Asian markets were more subdued, excepting Indonesia and India, which were both highr by 3 1/2 to 4%.
As usual, bank stocks - both in the US and in Europe - led the advance.
Dow 10,785.14, + 404.71 (3.90%)
NASDAQ 2,374.67, +109.03 (4.81%)
S&P 500 1,159.73, +48.85 (4.40%)
NYSE Composite 7,257.62, +341.44 (4.94%)
Advancing issues led decliners by an enormous margin, 6036-696. New highs regained their edge over new lows, though not my a meaningful margin, considering the momentous advance. There were 143 new highs to just 37 new lows. The idea that there were any new lows at all was remarkable, and also notable was the volume, at lower levels than on most of last week's down days.
NYSE Volume 7,876,002,500.00
NASDAQ Volume 2,858,059,750.00
Chances are good that throwing a trillion dollars at Europe's problems will stabilize markets for a while, but, like their TARP counterpart in the fall of 2008, the effects could be very short-lived. As with the TARP in the US, the average European citizen will not likely embrace the bailout of banks and government while the populace goes hungry.
Commodities were mixed on the news. Oil regained some of what it lost over the past week, gaining $1.69, to $76.80, but gold was down $9.60, to $1,200.40. Silver slit the difference, gaining 10 cents, to $18.53.
Largely ignored were two items: Ratings agency, Moody's, received a Wells Notice from the SEC, signaling that enforcement action was forthcoming; Fannie Mae posted a $13 billion loss for the first quarter and asked for another $8.4 billion in federal assistance.
One thing that seems certain: The comparisons of Wall Street to Las Vegas are unfair. Las Vegas is a much more friendly place for individuals. The odds stay the same and the rules don't change over the weekend. These comparisons are only giving Las Vegas - a place where anyone and everyone gets a fair shake - a bad name and should cease. We'd like to call Wall Street a den of wolves, but we actually like wolves.
According the the Wall Street Journal:
The U.S. market's surging open followed strong gains in the Asian and European markets after the European Union agreed to a EUR750 billion ($955 billion) bailout, including EUR440 billion of loans from euro-zone governments, EUR60 billion from a European Union emergency fund and EUR250 billion from the International Monetary Fund.
Most of the gains came right at the open, which kept individual investors shut out for the most part. The major indices gapped up within 5 minutes of the open by roughly 4%.
Following Thursday's "magic moments," which witnessed a drop and subsequent rebound on the Dow in a matter of less than 15 minutes, market observers have plenty reason for skepticism. After Bob Brinker called the Thursday move, "manipulation," veteran trader Art Cashin, head of floor operations at UBS, said live on CNBC, referring to Friday's non-farm payroll report, "188,000 was a guess by the Bureau of Labor Statistics." Further, he said, "keep your eye on the referee. This game isn't on the up and up," referring to possibly the entire market.
All of this market volatility should come as no surprise to anybody who's been following the financial crisis over the past 2 1/2 - 3 years. Nations, and their political leaders, have a vested interest in keeping their worthless currencies in play, regardless the consequences down the road. Mountains of debt have been piled upon other mountains of debt around the world. The EU bailout was a long time in coming and a hard morsel to chew on for beleaguered leaders. Essentially, they had no choice, though the future seems as uncertain as ever, if not more so.
Stocks bounded higher in Europe and the US, with the average index gaining somewhere between 3 and 5 percent. Asian markets were more subdued, excepting Indonesia and India, which were both highr by 3 1/2 to 4%.
As usual, bank stocks - both in the US and in Europe - led the advance.
Dow 10,785.14, + 404.71 (3.90%)
NASDAQ 2,374.67, +109.03 (4.81%)
S&P 500 1,159.73, +48.85 (4.40%)
NYSE Composite 7,257.62, +341.44 (4.94%)
Advancing issues led decliners by an enormous margin, 6036-696. New highs regained their edge over new lows, though not my a meaningful margin, considering the momentous advance. There were 143 new highs to just 37 new lows. The idea that there were any new lows at all was remarkable, and also notable was the volume, at lower levels than on most of last week's down days.
NYSE Volume 7,876,002,500.00
NASDAQ Volume 2,858,059,750.00
Chances are good that throwing a trillion dollars at Europe's problems will stabilize markets for a while, but, like their TARP counterpart in the fall of 2008, the effects could be very short-lived. As with the TARP in the US, the average European citizen will not likely embrace the bailout of banks and government while the populace goes hungry.
Commodities were mixed on the news. Oil regained some of what it lost over the past week, gaining $1.69, to $76.80, but gold was down $9.60, to $1,200.40. Silver slit the difference, gaining 10 cents, to $18.53.
Largely ignored were two items: Ratings agency, Moody's, received a Wells Notice from the SEC, signaling that enforcement action was forthcoming; Fannie Mae posted a $13 billion loss for the first quarter and asked for another $8.4 billion in federal assistance.
One thing that seems certain: The comparisons of Wall Street to Las Vegas are unfair. Las Vegas is a much more friendly place for individuals. The odds stay the same and the rules don't change over the weekend. These comparisons are only giving Las Vegas - a place where anyone and everyone gets a fair shake - a bad name and should cease. We'd like to call Wall Street a den of wolves, but we actually like wolves.
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