What an absolute mockery the US stock markets are.
With stocks deteriorating late in the day, synchronized buying in the final 4 minutes brought the Dow Jones Industrial average back over 12,000, and to the first positive close in seven weeks.
The S&P move, similar in time frame, was even sillier, getting the widely-watched average to close exactly 0.52 higher than it ended last week. The Dow was up 52 points for the week, while the NASDAQ finished up the week a loser, down 27 points. Apparently, the genius brain trust on Wall Street missed that one.
In a few words, stocks are still very weak and the issues causing the weakness have yet to be resolved.
Dow 12,004.36, +42.84 (0.36%)
NASDAQ 2,616.48, -7.22 (0.28%)
S&P 500 1,271.50, +3.86 (0.30%)
NYSE Composite 8,000.11, +36.51 (0.46%)
For the first time in a while, advancers carried the day, unconvincingly beating declining issues, 3857-2774. On the NASDAQ, there were only 28 new highs and 113 new lows. The NYSE saw 25 new highs, but 48 new lows, making the combined totals favor the new lows for the 11th straight session, 161-76. Volume was healthy, having much to do, as did the general gains, with quadruple witching on options expiration. Beginning next week, with the options play out of the way, stocks can get right back to falling off the table again.
NASDAQ Volume 2,491,541,250
NYSE Volume 4,925,850,000
Crude oil was hammered down again, losing another $1.94, to close out the week at $93.01. Gold finished up $10.80, at $1540.00, while silver added 31 cents, to $35.90.
Economic data was muted, with the Conference Board's Index of leading Indicators up 0.8% for May, while the University of Michigan's consumer sentiment index backtracked from 74.3 in May to 71.8 in June.
It was a wild week for everyone, even those of us who only report on the madness.
Friday, June 17, 2011
Thursday, June 16, 2011
From Greece to Philadelphia, It Is All Bad
Whether it's indecision by the IMF, the EU, the Greek government or any other body that has an interest in the continued operation of the nation formerly known as Greece, markets have been roiled by the chain of events, delays, misconceptions and outright fabrications that have come to light over the past two weeks in the continuing collapse of Greece, and, by proxy, the European Union.
The situation has been in flux and flummoxed for a fortnight, with no apparent end in sight. Various people whose names all sound like Pompondreaus and will soon be forgotten pledge to make austerity nation of the Greeks, resign their office or do some other dastardly deed, hoping to end the crisis, though, in reality, everybody knows that Greece must be set free to return to the Drachma as their official currency and be done with the eleven-year-old experiment that is the Euro.
Ditto that for Portugal, Ireland, Belgium and sooner or later, Italy and Spain. Within a few years time, if not much sooner, the European Union will cease to exist.
Between now and whenever the bankers and politicians can decide on how best to divide the spoils of their failed experiment in a unified currency, we are likely to see more riots, food lines, general strikes, paramilitary actions, riots, shortages, lies, changes of governments, riots and as much discontent as a continent can have without actually being at war. Of course, war is always an option, one which may be used as an interim resort, by which to save the fannies and faces of the corrupt and wholly bankrupt European banking system.
The effect on the US is felt in myriad ways. For one, our sovereign dollar becomes better looking as a "safe" currency, our bonds become more expensive and yield less and US global stocks go for a merry-go ride, such as today's.
Also affecting the price of stocks - discounting the usual front-running, insider scams and outright HFT manipulation - was the report from the Philadelphia Fed on business activity within that district, which sank from an already-abysmal reading of 3.9 in May to -7.7 in June, the worst number since July of 2009. This followed Wednesday's stunner from the NY region, which had the Empire Index at -7.8 in June after a 11.9 number in May. Both indices measure general manufacturing and business conditions for their respective regions and show a general malaise reappearing when we're supposed to be in the midst of a recovery.
It's simply not happening, as continuing unemployment claims showed, dropping a bit to 414,000 in the most recent week, though still far too high a number to indicate anything other than continued pain and a lack of available jobs for the shrinking American workforce.
Stocks responded with a zig-zag effect, up in the morning, down in the afternoon, with a half-hearted rally at the end. Apparently there is some stomach for the larger, established, global industrial stocks contained in the Dow 30.
Dow 11,961.52, +64.25 (0.54%)
NASDAQ 2,623.70, -7.76 (0.29%)
S&P 500 1,267.64, +2.22 (0.18%)
NYSE Composite 7,963.60, -4.21 (0.05%)
Internals were not bifurcated in the least, offsetting any calming effect the headline numbers might suggest. Declining issues led advancers once more, 3562-3022. The NASDAQ saw a mere 13 stocks make new highs, while 112 recorded new lows. New lows led new highs on the NYSE as well, 82-16, giving the edge to new lows for the 10th straight session, 194-29. Eventually, most likely on a free-fall day in which the Dow is down 300 or more points, this measure will read off the charts, with over 1000 stocks hitting new lows. It is a moment to watch for, because it will signal the second phase of the bear market, the one which usually lasts the longest and is the most painful, in which stocks trade sideways to down for an extended period of time. Watch for it in a few weeks or months, though it could come at any time, depending on the particular catalyst.
Volume was along the same range as yesterday's, not much help to anyone doing technical analysis, though probably favoring the bearish case more than anything else.
NASDAQ Volume 1,985,734,500.00
NYSE Volume 4,642,697,500
Unfortunately, WTI crude oil futures were up 14 cents, to $94.95, instead of continuing the precipitous decline. It's an odd paradox for the American consumer. While most would like to see oil around $60 a barrel, which would drive gasoline prices down to around $3.00 per gallon, the correlated rise in the dollar would also serve to drive stocks lower, such is the pair-trade these days. However, the resulting stronger dollar would do more than just keep fuel prices down. It would keep more money in the hands of consumers while lowering the cost of just about everything, because everything needs to be shipped from one place to another. Additional discretionary money in the consumer's hands would lead, most likely, to paying down more debt, which is needed, and giving a general boost to the economy, also sorely needed.
Why it will not happen is because it is inherently deflationary, something by which the Federal Reserve and the US Treasury cannot abide, simply because lower prices for consumer end-products, outright deflation and improving conditions would also push interest rates higher, making the debt more expensive to repay. Thanks to the wizardry of the Federal Reserve, Americans are barred from lower prices, saving, and actually living in a world in which every last penny is not spent on either food, energy or taxes.
It is completely untenable and eventually one side will have to give in. A few million starving Americans might just force the Fed's hand and allow natural market forces to take hold. (I am dreaming of course, but do not wake me.)
Precious metals were essentially flat, with gold up 10 cents, to $1529.30 and silver down six cents, at $35.53.
Friday will be interesting if only to see whether the current losing streak for stocks continues for a nearly unprecedented seventh straight week. With it being a quadruple-witching day, we should certainly have our doubts. The markets are temporarily oversold, so any impetus at all should result in at least a small rally, which will save the day, though the war is far from being over.
The situation has been in flux and flummoxed for a fortnight, with no apparent end in sight. Various people whose names all sound like Pompondreaus and will soon be forgotten pledge to make austerity nation of the Greeks, resign their office or do some other dastardly deed, hoping to end the crisis, though, in reality, everybody knows that Greece must be set free to return to the Drachma as their official currency and be done with the eleven-year-old experiment that is the Euro.
Ditto that for Portugal, Ireland, Belgium and sooner or later, Italy and Spain. Within a few years time, if not much sooner, the European Union will cease to exist.
Between now and whenever the bankers and politicians can decide on how best to divide the spoils of their failed experiment in a unified currency, we are likely to see more riots, food lines, general strikes, paramilitary actions, riots, shortages, lies, changes of governments, riots and as much discontent as a continent can have without actually being at war. Of course, war is always an option, one which may be used as an interim resort, by which to save the fannies and faces of the corrupt and wholly bankrupt European banking system.
The effect on the US is felt in myriad ways. For one, our sovereign dollar becomes better looking as a "safe" currency, our bonds become more expensive and yield less and US global stocks go for a merry-go ride, such as today's.
Also affecting the price of stocks - discounting the usual front-running, insider scams and outright HFT manipulation - was the report from the Philadelphia Fed on business activity within that district, which sank from an already-abysmal reading of 3.9 in May to -7.7 in June, the worst number since July of 2009. This followed Wednesday's stunner from the NY region, which had the Empire Index at -7.8 in June after a 11.9 number in May. Both indices measure general manufacturing and business conditions for their respective regions and show a general malaise reappearing when we're supposed to be in the midst of a recovery.
It's simply not happening, as continuing unemployment claims showed, dropping a bit to 414,000 in the most recent week, though still far too high a number to indicate anything other than continued pain and a lack of available jobs for the shrinking American workforce.
Stocks responded with a zig-zag effect, up in the morning, down in the afternoon, with a half-hearted rally at the end. Apparently there is some stomach for the larger, established, global industrial stocks contained in the Dow 30.
Dow 11,961.52, +64.25 (0.54%)
NASDAQ 2,623.70, -7.76 (0.29%)
S&P 500 1,267.64, +2.22 (0.18%)
NYSE Composite 7,963.60, -4.21 (0.05%)
Internals were not bifurcated in the least, offsetting any calming effect the headline numbers might suggest. Declining issues led advancers once more, 3562-3022. The NASDAQ saw a mere 13 stocks make new highs, while 112 recorded new lows. New lows led new highs on the NYSE as well, 82-16, giving the edge to new lows for the 10th straight session, 194-29. Eventually, most likely on a free-fall day in which the Dow is down 300 or more points, this measure will read off the charts, with over 1000 stocks hitting new lows. It is a moment to watch for, because it will signal the second phase of the bear market, the one which usually lasts the longest and is the most painful, in which stocks trade sideways to down for an extended period of time. Watch for it in a few weeks or months, though it could come at any time, depending on the particular catalyst.
Volume was along the same range as yesterday's, not much help to anyone doing technical analysis, though probably favoring the bearish case more than anything else.
NASDAQ Volume 1,985,734,500.00
NYSE Volume 4,642,697,500
Unfortunately, WTI crude oil futures were up 14 cents, to $94.95, instead of continuing the precipitous decline. It's an odd paradox for the American consumer. While most would like to see oil around $60 a barrel, which would drive gasoline prices down to around $3.00 per gallon, the correlated rise in the dollar would also serve to drive stocks lower, such is the pair-trade these days. However, the resulting stronger dollar would do more than just keep fuel prices down. It would keep more money in the hands of consumers while lowering the cost of just about everything, because everything needs to be shipped from one place to another. Additional discretionary money in the consumer's hands would lead, most likely, to paying down more debt, which is needed, and giving a general boost to the economy, also sorely needed.
Why it will not happen is because it is inherently deflationary, something by which the Federal Reserve and the US Treasury cannot abide, simply because lower prices for consumer end-products, outright deflation and improving conditions would also push interest rates higher, making the debt more expensive to repay. Thanks to the wizardry of the Federal Reserve, Americans are barred from lower prices, saving, and actually living in a world in which every last penny is not spent on either food, energy or taxes.
It is completely untenable and eventually one side will have to give in. A few million starving Americans might just force the Fed's hand and allow natural market forces to take hold. (I am dreaming of course, but do not wake me.)
Precious metals were essentially flat, with gold up 10 cents, to $1529.30 and silver down six cents, at $35.53.
Friday will be interesting if only to see whether the current losing streak for stocks continues for a nearly unprecedented seventh straight week. With it being a quadruple-witching day, we should certainly have our doubts. The markets are temporarily oversold, so any impetus at all should result in at least a small rally, which will save the day, though the war is far from being over.
Wednesday, June 15, 2011
Greece in Tatters, US Still in Denial
As Greece burns, global stock markets reel in terror.
It's really about time that the oligarchs running the show down on Wall Street come to the realization the most of the rest of the world isn't buying their load of bull hockey any more and investors are making their displeasure known by their feet, fleeing overpriced, overhyped, intangible assets as quickly as they can.
If the shakeout of small investors wasn't complete in the Fall of 2008 and the Winter of 2009, then this is to be expected. There are a myriad of reasons stocks should be sold off. Here's a small ticking off of the major bullet points:
Is that enough? Because there is more.
Granted the oligarchs of Wall Street and Washington will not listen. They will pose and posture and make statements about what America wants and needs and do nothing of the kind. And the media will bombard us with non-stop presidential politics for the next 18 months, even though half of the population could care less.
While Greece has surely lost the control of the public and all confidence, just as has Ireland and Iceland, and Egypt and Syria and many other countries, the American "establishment" has lost the confidence of its people. It's really that simple. Nobody approves of what goes in on Washington, and thus, nobody abides by them. The US political structure is such a laughing stock that serious people simply ignore it. Add on to that the massive numbers of people who have seen the political and economic systems for what they are and are opting out, dropping out, refusing to comply and bend to the will of the small, wealthy minority who wants to make all the rules, and you have a perfect condition for collapse, the collapse that should have happened three years and $20 trillion of wasted stimulus ago.
The desperation of the elitists is evident from the sour expressions of the paid monkeys on CNBC, who keep insisting that this downturn is temporary or transitory or a "soft patch" in the "recovery." It's hilarious to watch, especially if one is invested in hard goods, precious metals and/or commodities. To put it simply, stocks are for suckers, and the number of suckers still at the table is dwindling, fast.
Dow 11,897.27, -178.84 (1.48%)
NASDAQ 2,631.46, -47.26 (1.76%)
S&P 500 1,265.42, -22.45 (1.74%)
NYSE Composite 7,967.81, -164.96 (2.03%)
The internals told the true story of the devastation. Declining issues outpaced advancers by the largest margin in almost than a year, 5379-1270. NASDAQ recorded 11 new highs and 114 new lows, while the NYSE saw 23 new highs and 79 new lows. The combined total has the new lows ahead for the ninth consecutive session, at just 34 new highs and 193 new lows, with surely more to come.
Volume was actually a little bit perky, especially tantalizing for short sellers and bears.
NASDAQ Volume 1,993,706,125
NYSE Volume 4,653,039,000
As the Greek situation broke down and out, into street protests and young men attacking riot police with sticks, bats and rocks, the dollar became the safe haven currency, smashing crude oil down by $4.68, to $94.81. Oil still has a long way to come down before any kind of supply-demand equilibrium can be maintained. $70 or $60 or even less per barrel are no longer outside targets.
Gold rose modestly as as store of value, up $6.70, to $1530.80. Silver tagged along, gaining 41 cents, to $35.80, though, if stocks continue to slide, they may take other asset classes along with them in a deflationary episode, despite the ongoing efforts by the central banks and the Fed to inflate.
Today's declines took out all of yesterday's gains. Stocks are on track to record their first seven-week losing streak since early 2001, predating 9/11.
Just for fun, tomorrow's traders will have to deal with this week's initial unemployment claims, which will be released an hour prior to the opening bell. It ought to be a doozy.
It's really about time that the oligarchs running the show down on Wall Street come to the realization the most of the rest of the world isn't buying their load of bull hockey any more and investors are making their displeasure known by their feet, fleeing overpriced, overhyped, intangible assets as quickly as they can.
If the shakeout of small investors wasn't complete in the Fall of 2008 and the Winter of 2009, then this is to be expected. There are a myriad of reasons stocks should be sold off. Here's a small ticking off of the major bullet points:
- Incomes haven't risen in years, though the price of everything from food to rent to heating fuel has doubled in some cases.
- Maybe Americans are a little bit tired of killing themselves at low-wage jobs just to buy gas at upwards of $3.50 a gallon.
- Speaking of jobs, there aren't any.
- Americans are sick of bailouts of the banks which caused this crisis.
- Americans are sick of bankers getting enormous bonuses for abject failure.
- Americans are sick of a federal government that keeps putting us deeper and deeper in debt.
- Americans are sick and tired of the Fed devaluing the currency and causing global inflation.
- Americans are sick and tired of the casino-like atmosphere on Wall Street, controlled by a very few insiders with guarantees of non-failure, not to mention the insider trading, HFTs, front-running, bond-flipping and all the rest of the improper accounting tricks and bogus schemes.
- Americans would like to see Jamie Dimon, Lloyd Blankfien, Angelo Mozillo and many others prosecuted for their crimes, but the US Justice Department has been bought off.
- Iceland defaulted, Ireland is a basket case, Greece is going to default and then Portugal and Spain and Italy should, if only to express outrage at the corrupt Berlusconi government.
- The US government is horribly corrupt as well and default is headed for our shores as well, since all the Treasury Secretary and Federal Reserve Chairman know how to do is further impoverish the people of the United States, and, to a lesser degree, the rest of the population of the world.
- Americans are sick of rules, taxes, regulations, heavy-handedness at all levels of government, the continued deprecation of civil liberties, the lies, obfuscation and treachery at the highest levels of government and finance. Americans want the truth, but the politicians and bankers know that they would all be behind bars, or worse, should the truth be known.
- Americans want the government out of their lives, decent jobs, no more wars, no more lying, nothing more.
Is that enough? Because there is more.
Granted the oligarchs of Wall Street and Washington will not listen. They will pose and posture and make statements about what America wants and needs and do nothing of the kind. And the media will bombard us with non-stop presidential politics for the next 18 months, even though half of the population could care less.
While Greece has surely lost the control of the public and all confidence, just as has Ireland and Iceland, and Egypt and Syria and many other countries, the American "establishment" has lost the confidence of its people. It's really that simple. Nobody approves of what goes in on Washington, and thus, nobody abides by them. The US political structure is such a laughing stock that serious people simply ignore it. Add on to that the massive numbers of people who have seen the political and economic systems for what they are and are opting out, dropping out, refusing to comply and bend to the will of the small, wealthy minority who wants to make all the rules, and you have a perfect condition for collapse, the collapse that should have happened three years and $20 trillion of wasted stimulus ago.
The desperation of the elitists is evident from the sour expressions of the paid monkeys on CNBC, who keep insisting that this downturn is temporary or transitory or a "soft patch" in the "recovery." It's hilarious to watch, especially if one is invested in hard goods, precious metals and/or commodities. To put it simply, stocks are for suckers, and the number of suckers still at the table is dwindling, fast.
Dow 11,897.27, -178.84 (1.48%)
NASDAQ 2,631.46, -47.26 (1.76%)
S&P 500 1,265.42, -22.45 (1.74%)
NYSE Composite 7,967.81, -164.96 (2.03%)
The internals told the true story of the devastation. Declining issues outpaced advancers by the largest margin in almost than a year, 5379-1270. NASDAQ recorded 11 new highs and 114 new lows, while the NYSE saw 23 new highs and 79 new lows. The combined total has the new lows ahead for the ninth consecutive session, at just 34 new highs and 193 new lows, with surely more to come.
Volume was actually a little bit perky, especially tantalizing for short sellers and bears.
NASDAQ Volume 1,993,706,125
NYSE Volume 4,653,039,000
As the Greek situation broke down and out, into street protests and young men attacking riot police with sticks, bats and rocks, the dollar became the safe haven currency, smashing crude oil down by $4.68, to $94.81. Oil still has a long way to come down before any kind of supply-demand equilibrium can be maintained. $70 or $60 or even less per barrel are no longer outside targets.
Gold rose modestly as as store of value, up $6.70, to $1530.80. Silver tagged along, gaining 41 cents, to $35.80, though, if stocks continue to slide, they may take other asset classes along with them in a deflationary episode, despite the ongoing efforts by the central banks and the Fed to inflate.
Today's declines took out all of yesterday's gains. Stocks are on track to record their first seven-week losing streak since early 2001, predating 9/11.
Just for fun, tomorrow's traders will have to deal with this week's initial unemployment claims, which will be released an hour prior to the opening bell. It ought to be a doozy.
Tuesday, June 14, 2011
Theatre of the Absurd in DC as Bernanke Threatens US
A grand assemblage of the masterminds responsible for the demise of the global economy met in Washington, DC, today, for what was called the Committee For A Responsible Federal Budget - somewhat of a misnomer or mutually exclusive mistake with "responsible" and "federal budget" in the same sentence.
Headlining the event was none other than the master thief, Fed Chairman Ben Bernanke, who spoke for about ten minutes to open the affair. In a somewhat petulant and, at the same time, preachily pedantic statement, Bernanke made an open threat to the citizens of the United States. As he outlined the possibilities of congress not raising the debt ceiling he said,
"Some have suggested that payments by the Treasury could be prioritized to meet principal and interest payments on debt outstanding, thus avoiding a technical default on federal debt. However, even if that were the case, given the current size of the deficit and the uneven time pattern of government receipts and payments, the Treasury would soon find it necessary to prioritize among and withhold critical disbursements, such as Social Security and Medicare payments and funds for the military." [emphasis mine]
There you have it folks. The Chairman of the Federal Reserve - a private bank in every sense of the word "private" - telling the world that failure to raise the debt ceiling would result in the US government defaulting on its obligations to its people. Not that the US government could send home millions of worthless government paper-shufflers or stop payments to oil companies or foreign countries, no, the government would stiff the elderly, the sick and infirm and those who fight our wars for global US dollar hegemony in the military.
Nice, huh?
Sickening is what it is. Absurd. Bizarre. Mere words cannot adequately describe the mendacity of the elite banker/politician class, their abject scorn for the public nor their ability to destroy in the last ten-and-a-half years what took 200 years to build. The American public, and, to some degree, the populations of the rest of the world are now and have been at the point of the spear wielded by the elitists of the world.
Just in case anybody is wondering, the chance of congress NOT raising the debt ceiling are about the same as the federal funds rate: approaching ZERO.
Today's well-orchestrated market response was a mammoth rally on - big surprise - the lowest volume in three weeks. Now we will be told by the mainstream mouthpieces in the media that the US economy is just in a soft patch on the road to recovery. All is well. Go out and spend.
These are free markets? Really? Go back to sleep if you believe that.
Dow 12,076.11, +123.14 (1.03%)
NASDAQ 2,678.72, +39.03 (1.48%)
S&P 500 1,287.87, +16.04 (1.26%)
NYSE Composite 8,132.77, +115.71 (1.44%)
Now, this is where it gets even weirder. Market internals show advancing issues beating decliners by a whopping 5268-1383. On the NASDAQ, there were 30 new highs and 68 new lows. The NYSE showed 30 new highs and 28 new lows, so the indicator is still negative with the combined 60 new highs bettered by 96 new lows. Give them a few days, though, and the market manipulators will turn these numbers around, even after eight straight days of the lows leading the highs.
Did somebody mention that volume was non-existent, and, normally, low volume on a huge upside day is a sure sign that the rally was a fake? Note that options expiration is Friday, and some rather large bets were likely cashed today.
NASDAQ Volume 1,725,560,250.00
NYSE Volume 3,972,814,250
Another sure sign that the planet is in the death grip of the banking cartel is that oil spiked by $2.07 today, to $99.37 per barrel. Flows into precious metals were strong, however, with gold up $8.80, to $1524.10 and silver ahead by 63 cents, to $35.39.
The hubris from the Fed Chairman today was breathtakingly simple and completely without precedent. We are owned.
Headlining the event was none other than the master thief, Fed Chairman Ben Bernanke, who spoke for about ten minutes to open the affair. In a somewhat petulant and, at the same time, preachily pedantic statement, Bernanke made an open threat to the citizens of the United States. As he outlined the possibilities of congress not raising the debt ceiling he said,
"Some have suggested that payments by the Treasury could be prioritized to meet principal and interest payments on debt outstanding, thus avoiding a technical default on federal debt. However, even if that were the case, given the current size of the deficit and the uneven time pattern of government receipts and payments, the Treasury would soon find it necessary to prioritize among and withhold critical disbursements, such as Social Security and Medicare payments and funds for the military." [emphasis mine]
There you have it folks. The Chairman of the Federal Reserve - a private bank in every sense of the word "private" - telling the world that failure to raise the debt ceiling would result in the US government defaulting on its obligations to its people. Not that the US government could send home millions of worthless government paper-shufflers or stop payments to oil companies or foreign countries, no, the government would stiff the elderly, the sick and infirm and those who fight our wars for global US dollar hegemony in the military.
Nice, huh?
Sickening is what it is. Absurd. Bizarre. Mere words cannot adequately describe the mendacity of the elite banker/politician class, their abject scorn for the public nor their ability to destroy in the last ten-and-a-half years what took 200 years to build. The American public, and, to some degree, the populations of the rest of the world are now and have been at the point of the spear wielded by the elitists of the world.
Just in case anybody is wondering, the chance of congress NOT raising the debt ceiling are about the same as the federal funds rate: approaching ZERO.
Today's well-orchestrated market response was a mammoth rally on - big surprise - the lowest volume in three weeks. Now we will be told by the mainstream mouthpieces in the media that the US economy is just in a soft patch on the road to recovery. All is well. Go out and spend.
These are free markets? Really? Go back to sleep if you believe that.
Dow 12,076.11, +123.14 (1.03%)
NASDAQ 2,678.72, +39.03 (1.48%)
S&P 500 1,287.87, +16.04 (1.26%)
NYSE Composite 8,132.77, +115.71 (1.44%)
Now, this is where it gets even weirder. Market internals show advancing issues beating decliners by a whopping 5268-1383. On the NASDAQ, there were 30 new highs and 68 new lows. The NYSE showed 30 new highs and 28 new lows, so the indicator is still negative with the combined 60 new highs bettered by 96 new lows. Give them a few days, though, and the market manipulators will turn these numbers around, even after eight straight days of the lows leading the highs.
Did somebody mention that volume was non-existent, and, normally, low volume on a huge upside day is a sure sign that the rally was a fake? Note that options expiration is Friday, and some rather large bets were likely cashed today.
NASDAQ Volume 1,725,560,250.00
NYSE Volume 3,972,814,250
Another sure sign that the planet is in the death grip of the banking cartel is that oil spiked by $2.07 today, to $99.37 per barrel. Flows into precious metals were strong, however, with gold up $8.80, to $1524.10 and silver ahead by 63 cents, to $35.39.
The hubris from the Fed Chairman today was breathtakingly simple and completely without precedent. We are owned.
Monday, June 13, 2011
Stocks Up? Not Really.
The desperation, both on Wall Street and in the hallowed halls of Congress and at the white House, is becoming palpable and, if the whole sordid state of affairs of our economy were not so profoundly sad, laughable.
Today, the wizards controlling the High Frequency Trading (HFT) computers, which account for about 75% (some say it's more than that) of all stock trades, managed to send the broad indices up in the morning, down a bit in the afternoon and close nearly unchanged. This is a very neat trick, devised to scalp money from day-traders, hedge funds, momentum players and anyone else foolish enough to venture into the caverns of Wall Street.
What it is not, is indicative of a stable condition in the markets. The current environment is about as unstable as it has been since the fall of 2008, when the entire global financial system nearly fell off the rails. There is the condition of the Greek debt, which sorely needs restructuring and plans have come, gone, come back, been revised, altered, accepted, rejected, sliced, diced, proposed, failed, and eventually found to be lacking. Greece will default; it is only a matter of time, as will Ireland, Spain, Portugal and maybe even Italy, Hungary and other small countries, like Balarus, which already has revalued its currency. Ouch.
It's interesting to note that Belarus took the extreme measure of revaluing its currency in light of a current account deficit that was 16% of GDP. In the US, congress is toying with raising the debt ceiling, and if it does so, will likely result in a current account deficit that's at least 10-12% of GDP. We're getting closer, and we can do it, for sure. USA - USA - USA!
Today's flat line finish was a sham. Take a look at the shattered internals.
Dow 11,952.97, +1.06 (0.01%)
NASDAQ 2,639.69, -4.04 (0.15%)
S&P 500 1,271.83, +0.85 (0.07%)
NYSE Composite 8,017.06, +0.67 (0.01%)
Losing stocks led winners by a wide margin, 3918-2699. NASDAQ new highs: 32; new lows: 139. NYSE new highs 21; new lows: 90. The combined total of 52 new highs and 229 new lows marks the seventh straight day in which new lows have exceeded new highs and indicates, more strongly than ever, that this downturn is going to be deeper and longer than anyone on Wall Street of in Washington is willing to disclose. A few numbers have been bandied about, like 1000 on the S&P and 10,000 on the Dow as possible bottoms, though die-hard deflationists are looking for much lower figures, rivaling or even exceeding the lows of March, 2009.
Volume was, as usual, depressed and depressing.
NASDAQ Volume 1,854,694,875.00
NYSE Volume 4,102,367,000
In deflationist terms, there was good news. WTI crude oil fell by $1.99, to $97.30, the lowest price in month. Now, if drivers can just hang on a while longer, some of the price declines may begin showing up at the pump.
Precious metals were also lower, with gold coming down $16.80, to $1515.30, and silver once again breaking below $35/ounce, down $1.44, to $34.76.
The handwriting is on scrawled across the economic wall: No growth, no wages inflation, no commodity inflation, all assets are due for another round of devaluation. Hold, wait, then buy gold, silver, tools, arable land and other desirable assets.
Today, the wizards controlling the High Frequency Trading (HFT) computers, which account for about 75% (some say it's more than that) of all stock trades, managed to send the broad indices up in the morning, down a bit in the afternoon and close nearly unchanged. This is a very neat trick, devised to scalp money from day-traders, hedge funds, momentum players and anyone else foolish enough to venture into the caverns of Wall Street.
What it is not, is indicative of a stable condition in the markets. The current environment is about as unstable as it has been since the fall of 2008, when the entire global financial system nearly fell off the rails. There is the condition of the Greek debt, which sorely needs restructuring and plans have come, gone, come back, been revised, altered, accepted, rejected, sliced, diced, proposed, failed, and eventually found to be lacking. Greece will default; it is only a matter of time, as will Ireland, Spain, Portugal and maybe even Italy, Hungary and other small countries, like Balarus, which already has revalued its currency. Ouch.
It's interesting to note that Belarus took the extreme measure of revaluing its currency in light of a current account deficit that was 16% of GDP. In the US, congress is toying with raising the debt ceiling, and if it does so, will likely result in a current account deficit that's at least 10-12% of GDP. We're getting closer, and we can do it, for sure. USA - USA - USA!
Today's flat line finish was a sham. Take a look at the shattered internals.
Dow 11,952.97, +1.06 (0.01%)
NASDAQ 2,639.69, -4.04 (0.15%)
S&P 500 1,271.83, +0.85 (0.07%)
NYSE Composite 8,017.06, +0.67 (0.01%)
Losing stocks led winners by a wide margin, 3918-2699. NASDAQ new highs: 32; new lows: 139. NYSE new highs 21; new lows: 90. The combined total of 52 new highs and 229 new lows marks the seventh straight day in which new lows have exceeded new highs and indicates, more strongly than ever, that this downturn is going to be deeper and longer than anyone on Wall Street of in Washington is willing to disclose. A few numbers have been bandied about, like 1000 on the S&P and 10,000 on the Dow as possible bottoms, though die-hard deflationists are looking for much lower figures, rivaling or even exceeding the lows of March, 2009.
Volume was, as usual, depressed and depressing.
NASDAQ Volume 1,854,694,875.00
NYSE Volume 4,102,367,000
In deflationist terms, there was good news. WTI crude oil fell by $1.99, to $97.30, the lowest price in month. Now, if drivers can just hang on a while longer, some of the price declines may begin showing up at the pump.
Precious metals were also lower, with gold coming down $16.80, to $1515.30, and silver once again breaking below $35/ounce, down $1.44, to $34.76.
The handwriting is on scrawled across the economic wall: No growth, no wages inflation, no commodity inflation, all assets are due for another round of devaluation. Hold, wait, then buy gold, silver, tools, arable land and other desirable assets.
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