Make no mistake about it, something was up when all the major indices did an abrupt about-face in the final half hour of trading.
There was no earth-shattering news, no announcements, nothing, except some of the big players pulling their bids to see what would happen on what turned out to be the lowest volume day of the year.
It didn't take long for the results to be seen: immediate capitulation. There is absolutely no faith in stocks, in this market, in the US economy or the global economy. Everything has been gliding along on top of bank bailout, trillions of dollars in liquidity injections and stimulus, and yet, the economy is still weak, possibly about to roll over into the second phase of the depression, without the backstop of global money-printing by central banks.
Today was a test run. The test revealed what everybody with at least half a functioning cerebral cortex already knew: we're screwed. Once the Fed stops its daily injection of liquidity through POMO and other behind-the-scenes operations, the market crashes. It's exactly why the Fed would not allow Bank of America to increase its dividend from the absurd (.01) to the ridiculous (.02) last week. They're a victim, about to be sucked under by bad debt, never written down properly and put-backs by the various parties to whom they sold the toxic MBS in the first place.
The death of Bank of America will not be a pretty sight, but it is overdue by some two years and is eventually unavoidable. The only question remaining is exactly when the plug is finally pulled and that is something nobody can predict with confidence.
What was truly remarkable about today's 30-minute nuke test was the overall number of decliners as compared to advancers. The ratio was far out of the range expected in such a small decline. Losers led gainers, 3843-2674.
Dow 12,197.88, -22.71 (0.19%)
NASDAQ 2,730.68, -12.38 (0.45%)
S&P 500 1,310.19, -3.61 (0.27%)
NYSE Composite 8,296.52, -25.26 (0.30%)
On the NASDAQ, there were 109 new highs and 22 new lows. There were 114 new highs and 16 new lows on the NYSE. Be prepared for these numbers to converge again and possibly roll over. The falls from the February 18 highs were truncated when buyers stepped in at support levels over the last two weeks. Capitulation never occurred and the market correction of 10-15% turned out to be only a 4-6% decline. Resumption of the correction could have begun late today, but look for any tell-tale signs in the A-D line (like today) and of course volume and the new high-new low readings.
NASDAQ Volume 1,687,059,000
NYSE Volume 3,583,604,000
Crude oil dipped again today, as the ground conditions in Libya seem to be improving, meaning that NATO air strikes have taken their toll on the rogue government's advances and the rebels are gaining an upper hand. WTI crude fell $1.42, to $103.98. Relief at the gas pump would be welcome, but the Middle east situation is still largely unresolved and volatile. Expect crude to trade around $100 per barrel for the foreseeable future with gas prices in the US hovering in the $3.40-3.80 range through the Spring. Summer could witness a complete reversal due to easing tensions and slack demand.
Gold finished slightly lower, losing $6.30, to $1,419.90. Silver gained 4 cents, holding at $37.09.
There are key releases of economic data this week, beginning with the S&P/Case-Shiller 10 and 20-city indices on Tuesday and the BLS non-farm payroll data on Friday. Of course, Thursday is the end of month and first quarter, so portfolio realignment should cause more volatility and another spike in the VIX is more probable this week than over the past two when it was pounded down by Fed liquidity.
Reality is taking a firm footing here and around the world. The containment of the Fukushima Daiichi nuclear disaster is far from over and needs to be handled much more diligently than it has been to this point. It is not under control still and needs to be handled as a global threat because it is.
The news coming out of Japan on all matters related to the nuclear plant that has become now nothing more than a toxic, nuclear dump site leeching radioactive isotopes into the air, into ground water and the ocean. This should have been completely handled at least a week ago. It is now closing in on three weeks since the quake and the situation is still worsening despite what may be reported by major news sources.
Monday, March 28, 2011
Friday, March 25, 2011
A Great Week for Stocks. Not So Good for People
Stocks were off to a slow start on Friday, but got a boost around 10:20 am EDT which lasted until shortly after noon, at which point profit-takers took over and remained in charge to the closing bell.
Overall, it was a banner week for stocks, based entirely on nothing in particular and mostly ignoring the horrendous news - both financial and international - that kept flowing every day.
For instance, the situation in Libya is nowhere near stabilizing and, given the steadfastness of Muhammar Gadaffi to remain in power, may escalate into a wider conflict. Yemen, Syria and Bahrain are still in the throes of wild civil unrest. Conditions at the nuclear reactor facilities in Japan have worsened by the day, and are nowhere near being resolved.
Portugal's government is all but dissolved and the Irish bailout is falling apart. Most of Europe is facing much the same situation as prevails in the US, no recovery and no signs of improvement. Additionally, leading political figures either don't seem to know what to do or simply don't want to do anything to better the lot of their citizenry.
Investors apparently are taking this all in stride, were it not for the fact that said investors are actually computer algorithms running at warp speed for the various banks and hedge funds who are clipping retail investors every chance they get.
The major indices were up four out of five days, the only down day being Tuesday, and it was a minor decline. The Dow finished ahead 262 points, or about 2.2%. The NASDAQ tacked on a cool 100 points, or nearly 4%. The S&P was up by 37 points, almost 3%, and the NYSE gained 205 points, or 2.5%.
Life was less good for residents of Libya, who are under military siege, and Japan, many of whom are homeless, while Tokyo residents are concerned about irradiated drinking water, already told by their authorities that the levels of iodine in some of that water is unsafe for infants and babies (and probably not too good for adults). Th remainder of the civilized world only had to put up with rising prices for gas or petrol, although life in South America and Central America remains relatively peaceful compared to the rest.
Dow 12,220.59, +50.03 (0.41%)
NASDAQ 2,743.06, +6.64 (0.24%)
S&P 500 1,313.80, +4.14 (0.32%)
NYSE Composite 8,321.78, +10.17 (0.12%)
Advancing issues bettered decliners by a score of 3980-2536. New highs on the NASDAQ totaled 143, to 21 new lows. On the NYSE, there were 243 new highs and just 8 new lows, which was not surprising, since volume was at levels not worth even watching, a sign that participation levels are a fraction of what they used to be, before the 2008 crash and the onset of completely rigged, centrally-planned, manipulated markets designed to keep the global Ponzi scheme of central bankers looking like it cannot fail.
NASDAQ Volume 1,771,109,000.00
NYSE Volume 3,934,565,000
WTI crude oil was flat, losing 20 cents, to $105.40. Gold and silver received their customary Friday smack-down, with gold losing $8.70, to $1,426.20 and silver down 33 cents, to $37.05.
Considering events, it was a banner week for the New World Order (NWO), in which everything you see or hear in the mainstream media is fake, phony and otherwise watered-down to prevent people from understanding just how dire global finances really are.
Have a great weekend and if body parts begin to glow in the dark, you can thank our leaders for keeping us safe from runaway, uncontrolled nuclear accidents.
Overall, it was a banner week for stocks, based entirely on nothing in particular and mostly ignoring the horrendous news - both financial and international - that kept flowing every day.
For instance, the situation in Libya is nowhere near stabilizing and, given the steadfastness of Muhammar Gadaffi to remain in power, may escalate into a wider conflict. Yemen, Syria and Bahrain are still in the throes of wild civil unrest. Conditions at the nuclear reactor facilities in Japan have worsened by the day, and are nowhere near being resolved.
Portugal's government is all but dissolved and the Irish bailout is falling apart. Most of Europe is facing much the same situation as prevails in the US, no recovery and no signs of improvement. Additionally, leading political figures either don't seem to know what to do or simply don't want to do anything to better the lot of their citizenry.
Investors apparently are taking this all in stride, were it not for the fact that said investors are actually computer algorithms running at warp speed for the various banks and hedge funds who are clipping retail investors every chance they get.
The major indices were up four out of five days, the only down day being Tuesday, and it was a minor decline. The Dow finished ahead 262 points, or about 2.2%. The NASDAQ tacked on a cool 100 points, or nearly 4%. The S&P was up by 37 points, almost 3%, and the NYSE gained 205 points, or 2.5%.
Life was less good for residents of Libya, who are under military siege, and Japan, many of whom are homeless, while Tokyo residents are concerned about irradiated drinking water, already told by their authorities that the levels of iodine in some of that water is unsafe for infants and babies (and probably not too good for adults). Th remainder of the civilized world only had to put up with rising prices for gas or petrol, although life in South America and Central America remains relatively peaceful compared to the rest.
Dow 12,220.59, +50.03 (0.41%)
NASDAQ 2,743.06, +6.64 (0.24%)
S&P 500 1,313.80, +4.14 (0.32%)
NYSE Composite 8,321.78, +10.17 (0.12%)
Advancing issues bettered decliners by a score of 3980-2536. New highs on the NASDAQ totaled 143, to 21 new lows. On the NYSE, there were 243 new highs and just 8 new lows, which was not surprising, since volume was at levels not worth even watching, a sign that participation levels are a fraction of what they used to be, before the 2008 crash and the onset of completely rigged, centrally-planned, manipulated markets designed to keep the global Ponzi scheme of central bankers looking like it cannot fail.
NASDAQ Volume 1,771,109,000.00
NYSE Volume 3,934,565,000
WTI crude oil was flat, losing 20 cents, to $105.40. Gold and silver received their customary Friday smack-down, with gold losing $8.70, to $1,426.20 and silver down 33 cents, to $37.05.
Considering events, it was a banner week for the New World Order (NWO), in which everything you see or hear in the mainstream media is fake, phony and otherwise watered-down to prevent people from understanding just how dire global finances really are.
Have a great weekend and if body parts begin to glow in the dark, you can thank our leaders for keeping us safe from runaway, uncontrolled nuclear accidents.
Thursday, March 24, 2011
Extra Radiation Must Be Bullish For Stocks
All manner of radioactive isotopes continue to leak out of all six nuclear reactors at the Fukushima Daiichi plant on the Eastern coast of Japan. Radiation has been detected in sea water, fresh water, in the air and on land. Here's a nice summary of the effects a few of these "heavy" elements on human health.
Half a world away, Libya is being bombed to smithereens.
The coalition doing the bombing is falling apart.
New and existing homes sales are at 30 year lows.
New unemployment claims came in at 382,000, which is 5,000 fewer than the week before. Funny thing about those new unemployment claims, other than the fact that they're fairly benign numbers, is that when the economy isn't creating jobs and we're still stuck in a depression, people just hang on to the jobs they have. Businesses can only let go of so many people, so the natural tendency is for fewer and fewer people to quit, be fired or laid off. Thus, numbers like we've been getting the past few weeks only indicate that there are fewer people collecting benefits, not that new jobs are actually being created.
New jobs! You're such a kidder.
Durable orders for February were down 0.9%. The expectation was for a gain of 1.1%. Ooopsie!
All good, according to Wall Street. Party on.
I am the walrus.
Coo-coo-ka-choo.
Dow 12,170.56, +84.54 (0.70%)
NASDAQ 2,736.42, +38.12 (1.41%)
S&P 500 1,309.66, +12.12 (0.93%)
NYSE Composite 8,311.61, +62.78 (0.76%)
As expected advancing issues exceeded decliners, 4273-2196. Global economic conditions are so good, in fact, that there were 110 new highs on the NASDAQ and just 22 new lows. On the NYSE, 135 companies set new highs while only 13 hit new lows. Volume actually picked up a bit after two days of sleep-walking. Don't want to miss the rally, for Pete's sake.
NASDAQ Volume 1,901,250,250
NYSE Volume 4,358,651,500
Meanwhile, oil traded on the NYMEX, that light, sweet stuff called West Texas Intermediate, backed off a whole 15 cents a barrel, to $105.60. The new normal for a gallon of gas in the USA is now $3.55, according to AAA.
According to our sources at Kitco, gold is currently down $8.10, at $1430.50 per ounce, but that price does not reflect that the yellow money made a new all-time high today of $1449.10. Silver is being quoted at $37.19, down 23 cents. But silver also made a move to a fresh 31-year-high, slightly above $38 per ounce.
So, who's right? Normally, gold and silver only gain in times of undue global stress, as a store of value and a hedge against collapsing currencies and/or inflation risk.
Stocks go up in times of robust economic activity, normally, or whenever the Fed pumps enormous amounts of fresh capital into markets, as they've been doing for the better part of the past 2 1/2 years.
The dollar index fell .183, to 75.69, a horrifically low figure, indicating the US is not the safe haven it used to be in which to park money.
There's your answer. If the dollar index continues to fall, reaching unprecedented lows, which it is currently approaching, US stocks, denominated in dollars, have to gain just to keep up. Commodities may swing either way, but the precious metals and oil should rise as the dollar weakens, so both stock players and gold bugs are right to keep pushing prices higher. Only one of them will be the eventual winner, however, and, while we are pretty sure which that will be, we're not telling.
Half a world away, Libya is being bombed to smithereens.
The coalition doing the bombing is falling apart.
New and existing homes sales are at 30 year lows.
New unemployment claims came in at 382,000, which is 5,000 fewer than the week before. Funny thing about those new unemployment claims, other than the fact that they're fairly benign numbers, is that when the economy isn't creating jobs and we're still stuck in a depression, people just hang on to the jobs they have. Businesses can only let go of so many people, so the natural tendency is for fewer and fewer people to quit, be fired or laid off. Thus, numbers like we've been getting the past few weeks only indicate that there are fewer people collecting benefits, not that new jobs are actually being created.
New jobs! You're such a kidder.
Durable orders for February were down 0.9%. The expectation was for a gain of 1.1%. Ooopsie!
All good, according to Wall Street. Party on.
I am the walrus.
Coo-coo-ka-choo.
Dow 12,170.56, +84.54 (0.70%)
NASDAQ 2,736.42, +38.12 (1.41%)
S&P 500 1,309.66, +12.12 (0.93%)
NYSE Composite 8,311.61, +62.78 (0.76%)
As expected advancing issues exceeded decliners, 4273-2196. Global economic conditions are so good, in fact, that there were 110 new highs on the NASDAQ and just 22 new lows. On the NYSE, 135 companies set new highs while only 13 hit new lows. Volume actually picked up a bit after two days of sleep-walking. Don't want to miss the rally, for Pete's sake.
NASDAQ Volume 1,901,250,250
NYSE Volume 4,358,651,500
Meanwhile, oil traded on the NYMEX, that light, sweet stuff called West Texas Intermediate, backed off a whole 15 cents a barrel, to $105.60. The new normal for a gallon of gas in the USA is now $3.55, according to AAA.
According to our sources at Kitco, gold is currently down $8.10, at $1430.50 per ounce, but that price does not reflect that the yellow money made a new all-time high today of $1449.10. Silver is being quoted at $37.19, down 23 cents. But silver also made a move to a fresh 31-year-high, slightly above $38 per ounce.
So, who's right? Normally, gold and silver only gain in times of undue global stress, as a store of value and a hedge against collapsing currencies and/or inflation risk.
Stocks go up in times of robust economic activity, normally, or whenever the Fed pumps enormous amounts of fresh capital into markets, as they've been doing for the better part of the past 2 1/2 years.
The dollar index fell .183, to 75.69, a horrifically low figure, indicating the US is not the safe haven it used to be in which to park money.
There's your answer. If the dollar index continues to fall, reaching unprecedented lows, which it is currently approaching, US stocks, denominated in dollars, have to gain just to keep up. Commodities may swing either way, but the precious metals and oil should rise as the dollar weakens, so both stock players and gold bugs are right to keep pushing prices higher. Only one of them will be the eventual winner, however, and, while we are pretty sure which that will be, we're not telling.
Wednesday, March 23, 2011
WAKE UP, PEOPLE! THE GLOBE IS GOING NUCLEAR!
Not to sound alarmist, but anybody who believes the mainstream media is giving us the truth about what's really happening on the ground, in the air and in the water around the Fukushima plant in Japan, might just as well stick one's head in the sand and hope for the best.
Conditions at the the plant continue to worsen, despite the best efforts of brave individuals trying to keep the entire Eastern coast of Japan from turning into a nuclear wasteland and the media isn't even trying to cover it.
But why listen to me. Here are a few choice links of interest to anyone who doesn't want to grow a third ear or die from thyroid cancer when it could be avoided:
For starters, here' a story about of Australia about how 128 elderly patients were left to die in a hospital six miles from the nuclear plant.
Oh, well, too bad for them, huh? We're here in America, so none of this is affecting any of us, right?
Well, take a look at this map of the dispersion from the disabled plant:
Did that get your attention? Sure, maybe the radiation levels aren't anything to get excited about, but do you trust our dysfunctional media to actually deliver the truth? And why did FOX get their main reporter, Sheppard Smith, out of Japan and CNN do the same with Anderson Cooper, LAST WEEK?
Just ask yourself, how long will it take the "authorities" to put this nuclear disaster to rest? Well, it's been ten days, boys and girls, and we're nowhere close to fixing what's going to become known - I have no doubt about this at all - as the worst disaster - man-made or otherwise - of all time.
Now, maybe the fact that food imports from Japan have been banned, do you feel safer? Oh, and there's more, like black smoke and how Tokyo drinking water now contains iodine-131 at levels unsafe for infants. In case you're wondering how much is too much for adults, the recommended safe level is below 300 becquerels per liter. The water tested in Toyko recorded levels of 190-210 becquerel per liter.
So, why do I bother? The national media gives much more coverage to the stupidity of our
engagement in Libya. Wonder why? The old adage in TV news reporting is, "if it bleeds, it leads," meaning that guys getting shot and killed and bombs blowing up buildings is far more engaging to the dumbed-down populace of the United States (and a lot of the rest of the world) than pictures of steam coming out of blown up nuclear facilities.
Well, maybe that's enough for today. Wouldn't want anyone to get upset or panic. After all, our media and our government have proven, since 9-11, to be worthless, so why should it be any different in Japan? Just go along in your haze of cognitive dissonance, and maybe buy some stocks.
Oh, the Portugese parliament is likely going to dissolve soon, either due to radiation or votes, whichever comes first, I suppose.
So, yes, we should be buying stocks on all this bullish news, some of which is actually being reported.
Dow 12,086.02, +67.39 (0.56%)
NASDAQ 2,698.30, +14.43 (0.54%)
S&P 500 1,297.54, +3.77 (0.29%)
NYSE Composite 8,248.83, +20.42 (0.25%)
Stocks started out negative but ground higher all day. Thank the computers and the algos that do the majority of the trading these days. Advancers slithered by decliners, 3540-2917. On the NASDAQ there were 72 new highs and 42 new lows; the NYSE showed 91 new highs and 18 new lows. Volume was only marginally better than yesterday's which was worse than pathetic. Get ready for a wicked decline some time soon. It may look like a crash, because it just could be one.
NASDAQ Volume 1,715,377,875
NYSE Volume 4,313,727,000
At least those trading in commodities knew what they were doing. Oil was up 78 cents, to $105.75. Gold gained $10.40, to $1,438.00, and silver shot up 93 cents, to $37.20, another new 31-year high. The gold and silver bugs know what's up. If things get any worse, they'll become overnight million-and-billionaires.
Good luck to you still holding any paper assets. They're about to be burned, along with the rest of the fuel rods at Fuk - U - Shima.
Edit: Just had to add that ABC and CBS each began their nightly news broadcasts with nearly 10 minutes of breathless coverage on the death of Elizabeth Taylor. NBC led with Libya, but did report on the drinking water supplies being tainted in Tokyo. Priorities, people, priorities.
Conditions at the the plant continue to worsen, despite the best efforts of brave individuals trying to keep the entire Eastern coast of Japan from turning into a nuclear wasteland and the media isn't even trying to cover it.
But why listen to me. Here are a few choice links of interest to anyone who doesn't want to grow a third ear or die from thyroid cancer when it could be avoided:
For starters, here' a story about of Australia about how 128 elderly patients were left to die in a hospital six miles from the nuclear plant.
Oh, well, too bad for them, huh? We're here in America, so none of this is affecting any of us, right?
Well, take a look at this map of the dispersion from the disabled plant:
Did that get your attention? Sure, maybe the radiation levels aren't anything to get excited about, but do you trust our dysfunctional media to actually deliver the truth? And why did FOX get their main reporter, Sheppard Smith, out of Japan and CNN do the same with Anderson Cooper, LAST WEEK?
Just ask yourself, how long will it take the "authorities" to put this nuclear disaster to rest? Well, it's been ten days, boys and girls, and we're nowhere close to fixing what's going to become known - I have no doubt about this at all - as the worst disaster - man-made or otherwise - of all time.
Now, maybe the fact that food imports from Japan have been banned, do you feel safer? Oh, and there's more, like black smoke and how Tokyo drinking water now contains iodine-131 at levels unsafe for infants. In case you're wondering how much is too much for adults, the recommended safe level is below 300 becquerels per liter. The water tested in Toyko recorded levels of 190-210 becquerel per liter.
So, why do I bother? The national media gives much more coverage to the stupidity of our
Well, maybe that's enough for today. Wouldn't want anyone to get upset or panic. After all, our media and our government have proven, since 9-11, to be worthless, so why should it be any different in Japan? Just go along in your haze of cognitive dissonance, and maybe buy some stocks.
Oh, the Portugese parliament is likely going to dissolve soon, either due to radiation or votes, whichever comes first, I suppose.
So, yes, we should be buying stocks on all this bullish news, some of which is actually being reported.
Dow 12,086.02, +67.39 (0.56%)
NASDAQ 2,698.30, +14.43 (0.54%)
S&P 500 1,297.54, +3.77 (0.29%)
NYSE Composite 8,248.83, +20.42 (0.25%)
Stocks started out negative but ground higher all day. Thank the computers and the algos that do the majority of the trading these days. Advancers slithered by decliners, 3540-2917. On the NASDAQ there were 72 new highs and 42 new lows; the NYSE showed 91 new highs and 18 new lows. Volume was only marginally better than yesterday's which was worse than pathetic. Get ready for a wicked decline some time soon. It may look like a crash, because it just could be one.
NASDAQ Volume 1,715,377,875
NYSE Volume 4,313,727,000
At least those trading in commodities knew what they were doing. Oil was up 78 cents, to $105.75. Gold gained $10.40, to $1,438.00, and silver shot up 93 cents, to $37.20, another new 31-year high. The gold and silver bugs know what's up. If things get any worse, they'll become overnight million-and-billionaires.
Good luck to you still holding any paper assets. They're about to be burned, along with the rest of the fuel rods at Fuk - U - Shima.
Edit: Just had to add that ABC and CBS each began their nightly news broadcasts with nearly 10 minutes of breathless coverage on the death of Elizabeth Taylor. NBC led with Libya, but did report on the drinking water supplies being tainted in Tokyo. Priorities, people, priorities.
Tuesday, March 22, 2011
A Day Without Disaster
Thankfully, Tuesday is almost over with and there haven't been any grave disasters, though the ones that have been hovering over the globe for the past few weeks are still far from resolved.
It seems to make some sense that markets would just wallow around until the damaged nuclear reactors in Japan are finally shut down, whenever that may happen, Colonel Qadaffi is defeated or found dead in Libya and the level of unrest settles down in various countries in Northern Africa and the Middle East.
That's exactly what went on today. There seemed to be no reason to either buy or sell equities and the major indices traded in narrow ranges all session long.
Naturally, conditions in the hot spots around the world could get better or worse, and nobody is really sure of anything at this juncture, especially when officials in Japan continue to stage a weird kind of kabuki theater in the way they report the situation at the damaged Fukushima nuclear plant, where four reactors have experienced some kind of explosion, accident, fire or other condition as an indirect result of the 9.0 earthquake that rattled the island nation on March 11.
That the reactors are spewing radioactive gasses and material is not disputed, but how much of which particular isotopes are going where and when has not been even remotely reported. All we know is that the radiation levels are higher than they were a week ago in various areas around the site and that the spread has become nearly global in nature, though slight in terms of actual threats to human health.
That's not really very reassuring since the problems persist and any increased exposure to any kind of radiation is potentially a health hazard.
Meanwhile, the US response, in conjunction with a bevy of nations, to the blood-letting in Libya has been met with considerable criticism and even our own representatives are speaking in tongues, with the president, congress and the military all putting out their own spin, none of it making a whole lot of sense.
More than likely, these issues will remain in some kind of focus for the coming weeks, if not months, and there will be other unexpected events in the interim. The best advice would be to expect the unexpected at this juncture, because nothing is for certain and situations are still, as they say, fluid.
Dow 12,018.63, -17.90 (0.15%)
NASDAQ 2,683.87, -8.22 (0.31%)
S&P 500 1,293.77, -4.61 (0.36%)
NYSE Composite 8,228.41, -27.95 (0.34%)
Declining issues dominated winners, 3743-2718. There were 72 new highs and 33 new lows on the NASDAQ; on the NYSE 109 new highs and just 8 new lows. Volume was miserably low. This was, if not the slowest trading day of the year, among the three or four worst. There's simply too much event risk associated to equities in the current cycle.
NASDAQ Volume 1,671,905,000
NYSE Volume 3,995,960,500
Oil finished at an even $104.00, up another $1.67 due to unresolved Middle East issues. Gold managed a squeeze out a gain of $2.30, closing at $1,427.60 in New York, within 1% of its all-time high. Silver gained nicely, adding 27 cents per ounce, to $36.27, the third-highest point in the last 31 years and just pennies away from the nominal high of $36.60, reached just two weeks ago, on March 7.
The longer it takes for Japan's nuclear reactor problems to be resolved, the longer stocks will remain bogged down, stuck in a range between the highs of February 18 and recent lows. Radiation leaks and potential melt-downs are nothing to joke about, and the condition of those plants is such that it could easily become a much more severe problem before it is eventually resolved.
There's already a panic quietly building world-wide, even though the reported radiation levels have been in an "acceptable" range. However, the longer the reactors leak radiation, the lower the tolerance of acceptance becomes. That situation remains highly volatile and potentially upsetting on a global basis, not only to investors but to the health of people.
It seems to make some sense that markets would just wallow around until the damaged nuclear reactors in Japan are finally shut down, whenever that may happen, Colonel Qadaffi is defeated or found dead in Libya and the level of unrest settles down in various countries in Northern Africa and the Middle East.
That's exactly what went on today. There seemed to be no reason to either buy or sell equities and the major indices traded in narrow ranges all session long.
Naturally, conditions in the hot spots around the world could get better or worse, and nobody is really sure of anything at this juncture, especially when officials in Japan continue to stage a weird kind of kabuki theater in the way they report the situation at the damaged Fukushima nuclear plant, where four reactors have experienced some kind of explosion, accident, fire or other condition as an indirect result of the 9.0 earthquake that rattled the island nation on March 11.
That the reactors are spewing radioactive gasses and material is not disputed, but how much of which particular isotopes are going where and when has not been even remotely reported. All we know is that the radiation levels are higher than they were a week ago in various areas around the site and that the spread has become nearly global in nature, though slight in terms of actual threats to human health.
That's not really very reassuring since the problems persist and any increased exposure to any kind of radiation is potentially a health hazard.
Meanwhile, the US response, in conjunction with a bevy of nations, to the blood-letting in Libya has been met with considerable criticism and even our own representatives are speaking in tongues, with the president, congress and the military all putting out their own spin, none of it making a whole lot of sense.
More than likely, these issues will remain in some kind of focus for the coming weeks, if not months, and there will be other unexpected events in the interim. The best advice would be to expect the unexpected at this juncture, because nothing is for certain and situations are still, as they say, fluid.
Dow 12,018.63, -17.90 (0.15%)
NASDAQ 2,683.87, -8.22 (0.31%)
S&P 500 1,293.77, -4.61 (0.36%)
NYSE Composite 8,228.41, -27.95 (0.34%)
Declining issues dominated winners, 3743-2718. There were 72 new highs and 33 new lows on the NASDAQ; on the NYSE 109 new highs and just 8 new lows. Volume was miserably low. This was, if not the slowest trading day of the year, among the three or four worst. There's simply too much event risk associated to equities in the current cycle.
NASDAQ Volume 1,671,905,000
NYSE Volume 3,995,960,500
Oil finished at an even $104.00, up another $1.67 due to unresolved Middle East issues. Gold managed a squeeze out a gain of $2.30, closing at $1,427.60 in New York, within 1% of its all-time high. Silver gained nicely, adding 27 cents per ounce, to $36.27, the third-highest point in the last 31 years and just pennies away from the nominal high of $36.60, reached just two weeks ago, on March 7.
The longer it takes for Japan's nuclear reactor problems to be resolved, the longer stocks will remain bogged down, stuck in a range between the highs of February 18 and recent lows. Radiation leaks and potential melt-downs are nothing to joke about, and the condition of those plants is such that it could easily become a much more severe problem before it is eventually resolved.
There's already a panic quietly building world-wide, even though the reported radiation levels have been in an "acceptable" range. However, the longer the reactors leak radiation, the lower the tolerance of acceptance becomes. That situation remains highly volatile and potentially upsetting on a global basis, not only to investors but to the health of people.
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