There really was no good reason for stocks to start the day higher, but they did, probably in response to initial unemployment claims falling below 400,000 for the first time in three months.
The actual figure was 398,000, and was probably significantly fudged and will almost certainly be revised higher next week, but in a market this tense, anything that even hints of being good news is taken and such, so off went the speculators and day-traders, looking for quick, easy, short-term profits.
Some were undeniably successful, as a good number of stocks made significant gains and the NASDAQ rebounded nicely, up more than 30 points, after Wednesday's debacle.
Highs of the day were right around noon, and form there it was all downhill, with an especially sharp decline at the 2:00 hour. With the exception of the NASDAQ, which finished with a gain of just over one point, all of the major indices finished in the red for the fourth straight session.
Dow 12,240.11, -62.44 (0.51%)
NASDAQ 2,766.25, +1.46 (0.05%)
S&P 500 1,300.67, -4.22 (0.32%)
NYSE Composite 8,124.03, -29.18 (0.36%)
Once again, declining issues led advancers, 3744-2735. NASDAQ new highs numbered a mere 18, with 83 new lows. On the NYSE, new highs were outnumbered by new lows, 25-107. This puts the combined total at 43 new highs and 190 new lows, screaming for continued selling. Volume was healthy for a change, though most of it was on the downside.
NASDAQ Volume 2,105,143,250
NYSE Volume 4,957,269,500
Commodities hugged the flat line for the most part. Crude oil was up just 4 cents, to $97.44. Gold slipped $1.70, to $1,613.40. Silver still is being suppressed by the likes of JP Morgan and HSBC, falling another 77 cents, to $39.79.
Kitco's Live 24-hour spot silver chart clearly shows that once silver is traded in the Hong Kong market, prices are relatively stable, but wild swings - mostly to the negative - occur with regularity during the NY GLOBEX and NYMEX daily sessions. The big banks have their shorts in place and have been waging a losing battle for the past three years. Despite their mendacious efforts at keeping the price of silver down, they have already failed miserably and it is only a matter of time before the entire global silver market comes unglued and price soars past $50, $60, even $70 per ounce.
Silver has been a top performer the past five years or so, and should continue to do well as the fiat currency regime comes crashing down. Price is quite high at the present, but eventually, holders will be rewarded.
It appears that there will be no debt ceiling solution before the weekend, leaving the fools in Washington with nothing else to do but pass a stand-alone debt ceiling raise, which is what should have been happening all along. The Republicans in the House have perverted and conjoined the debt ceiling with the budget and long-term finances, and they will look like the fools of the foolish when all is said and done come Tuesday.
Thursday, July 28, 2011
Wednesday, July 27, 2011
D-Day Minus Six: Beware Falling Stocks; Dow, NASDAQ in Second-Worst Decline of 2011
It is now just six days from August 2nd, the day the government of the United States of America either passes a bill increasing the debt ceiling or begins defaulting on said debt, which is fast approaching $15 trillion.
Through accounting gimmicks and "borrowing" from the pension funds of federal employees, the government has thus far avoiding making either the commitment to borrow more or claim deadbeat status and suffer a beating at the hands of the ratings agencies in the form of credit downgrades and subsequent higher interest payments.
Make no bones about it, it is time for the American people to come to grips with the reality that the officials in Washington are not doing the jobs they are paid to do, nor have they represented the best interests of the American people for quite a long time (at least the past 11 years).
If the debt ceiling is not raised, calamity will surely ensue, which is why both sides - Republicans and Democrats, except for a few ardent Tea Partiers - have repeatedly expressed sentiment that the debt ceiling must be raised by August 2nd, no matter the outcome of budget negotiations. In truth, both sides are coming to the realization that their parties are far apart and that no budget issues or long-term spending should have become tied to the debt ceiling issue. They are separate matters which should be dealt with separately.
Nonetheless, the politicians continue their annoying Kabuki theatre while the American public seethes over their inability to compromise, act like reasonable adults and do what they were elected to do.
Wall Street has taken notice as well, logging losses in each of the first three days of this week, with no end to the selling yet in sight. To say that our "leaders" have taken a walk to the end of the plank would be putting it mildly. This issue should never have gotten to this point and those wishing to play fast and loose with the US economy should be given a hearly heave-ho and be dutifully shoved off the plank and into the drink.
What both parties have done - though especially the Republicans, who picked this fight - is shrink from their responsibilities, putting politics ahead of their oaths. It is a shameful chapter in American governance which should never be allowed to be repeated, though the general consensus is that more of the same will be forthcoming as the 2012 election season heats up.
The leaders of both parties should be henceforth removed from office for putting the stability and good faith and credit of America at extreme risk. After that, the herd of politicians being led by money from various lobbyists should be summarily removed from office. The entire congress could run better with many fewer members, preferably none of those presently constituting that formerly-august body.
The American public want change, need change and have been promised change, but all it has gotten is a sordid soap opera of bad politics and even worse outcomes. We have reached the brink and it is very nearly time to throw off the yoke of oppression by the governors and take matters in hand in a more efficient and direct manner. Nothing gets done in Washington any more; maybe it's time to shut it down.
The wealthy barons of Wall Street, those who funded the campaigns and lined the pockets of these moronic, imbecilic politicians, should also be brought to task, something Attorney General Eric Holder seems reluctant to pursue. After all, Wall Street keeps him in nice suits and fancy offices. He should be impeached.
Today's losses on the major indices were the second-largest of 2011 (except for the S&P, for which it was the third-largest), surpassing the 68 points the NASDAQ lost on January 28, but less than the 77 point decline on February 22, though more than the 66 point loss on June 1.
The Dow dropped 166, 179 and 279 points, and the S&P fell 23, 28 and 30 points on the same dates, respectively.
Dow 12,302.55, -198.75 (1.59%)
NASDAQ 2,764.79, -75.17 (2.65%)
S&P 500 1,304.89, -27.05 (2.03%)
NYSE Composite 8,153.21, -178.46 (2.14%)
Declining issues slaughtered advancers, 5875-804. New highs on the NASDAQ numbered only 15, while new lows expanded to 89. On the NYSE, there were 28 new highs and 105 new lows. The combined totals of 43 new highs and 194 new lows puts this indicator clearly in the "sell signal" category. Volume was dynamic and huge. Make no doubt about it: this was a rout.
NASDAQ Volume 2,310,879,750
NYSE Volume 5,074,647,000
Commodities were rather tame throughout the equity carnage. WTI oil fell $2.19, to $97.40, from an artificial and fully inflated high point. Gold dipped $1.70, to $1,615.10, while silver fell a modest 13 cents, to $40.57. The losses in the precious metals are temporary, likely the result of margin calls. Eventually, if stocks continue to take on water, money will gush into gold and silver.
The delay in raising the debt ceiling was not the only issue making for a horrible day on Wall Street. Durable goods orders fell 2.1% in June, further evidence that the economy is slowing.
Tomorrow's initial unemployment claims reading from the BLS could be the proverbial straw that breaks this market's back. Should the number come in above 420,000, stocks could pick right up where they left off today, severely to the downside.
Through accounting gimmicks and "borrowing" from the pension funds of federal employees, the government has thus far avoiding making either the commitment to borrow more or claim deadbeat status and suffer a beating at the hands of the ratings agencies in the form of credit downgrades and subsequent higher interest payments.
Make no bones about it, it is time for the American people to come to grips with the reality that the officials in Washington are not doing the jobs they are paid to do, nor have they represented the best interests of the American people for quite a long time (at least the past 11 years).
If the debt ceiling is not raised, calamity will surely ensue, which is why both sides - Republicans and Democrats, except for a few ardent Tea Partiers - have repeatedly expressed sentiment that the debt ceiling must be raised by August 2nd, no matter the outcome of budget negotiations. In truth, both sides are coming to the realization that their parties are far apart and that no budget issues or long-term spending should have become tied to the debt ceiling issue. They are separate matters which should be dealt with separately.
Nonetheless, the politicians continue their annoying Kabuki theatre while the American public seethes over their inability to compromise, act like reasonable adults and do what they were elected to do.
Wall Street has taken notice as well, logging losses in each of the first three days of this week, with no end to the selling yet in sight. To say that our "leaders" have taken a walk to the end of the plank would be putting it mildly. This issue should never have gotten to this point and those wishing to play fast and loose with the US economy should be given a hearly heave-ho and be dutifully shoved off the plank and into the drink.
What both parties have done - though especially the Republicans, who picked this fight - is shrink from their responsibilities, putting politics ahead of their oaths. It is a shameful chapter in American governance which should never be allowed to be repeated, though the general consensus is that more of the same will be forthcoming as the 2012 election season heats up.
The leaders of both parties should be henceforth removed from office for putting the stability and good faith and credit of America at extreme risk. After that, the herd of politicians being led by money from various lobbyists should be summarily removed from office. The entire congress could run better with many fewer members, preferably none of those presently constituting that formerly-august body.
The American public want change, need change and have been promised change, but all it has gotten is a sordid soap opera of bad politics and even worse outcomes. We have reached the brink and it is very nearly time to throw off the yoke of oppression by the governors and take matters in hand in a more efficient and direct manner. Nothing gets done in Washington any more; maybe it's time to shut it down.
The wealthy barons of Wall Street, those who funded the campaigns and lined the pockets of these moronic, imbecilic politicians, should also be brought to task, something Attorney General Eric Holder seems reluctant to pursue. After all, Wall Street keeps him in nice suits and fancy offices. He should be impeached.
Today's losses on the major indices were the second-largest of 2011 (except for the S&P, for which it was the third-largest), surpassing the 68 points the NASDAQ lost on January 28, but less than the 77 point decline on February 22, though more than the 66 point loss on June 1.
The Dow dropped 166, 179 and 279 points, and the S&P fell 23, 28 and 30 points on the same dates, respectively.
Dow 12,302.55, -198.75 (1.59%)
NASDAQ 2,764.79, -75.17 (2.65%)
S&P 500 1,304.89, -27.05 (2.03%)
NYSE Composite 8,153.21, -178.46 (2.14%)
Declining issues slaughtered advancers, 5875-804. New highs on the NASDAQ numbered only 15, while new lows expanded to 89. On the NYSE, there were 28 new highs and 105 new lows. The combined totals of 43 new highs and 194 new lows puts this indicator clearly in the "sell signal" category. Volume was dynamic and huge. Make no doubt about it: this was a rout.
NASDAQ Volume 2,310,879,750
NYSE Volume 5,074,647,000
Commodities were rather tame throughout the equity carnage. WTI oil fell $2.19, to $97.40, from an artificial and fully inflated high point. Gold dipped $1.70, to $1,615.10, while silver fell a modest 13 cents, to $40.57. The losses in the precious metals are temporary, likely the result of margin calls. Eventually, if stocks continue to take on water, money will gush into gold and silver.
The delay in raising the debt ceiling was not the only issue making for a horrible day on Wall Street. Durable goods orders fell 2.1% in June, further evidence that the economy is slowing.
Tomorrow's initial unemployment claims reading from the BLS could be the proverbial straw that breaks this market's back. Should the number come in above 420,000, stocks could pick right up where they left off today, severely to the downside.
Tuesday, July 26, 2011
No Debt Ceiling Deal Sends Stocks Lower Again
While the plutocrats in Washington dither away valuable time trying to figure out the most politically-expedient way out of their self-imposed debt ceiling crisis, the rest of the world goes on, mostly oblivious to the debacle in the capitol.
Stocks, however, as money substitutes, aren't taking the "no news" as good news. In fact, markets are absolutely terrified, not that the current congress and president will find a solution by the artificial August 2 deadline, but that their efforts will be so futile and pointless that the ratings agencies will lower the US debt/credit rating from its now pristine AAA sovereign status.
While the majority of people neither understand nor care about this delicious little surprise coming down the road like a 60-ton freighter, Wall Street and other governments are frightened out of their boots because a drop in the US rating would add something like $100 billion of cost - in interest - to the annual federal budget, which is already way out of whack.
Whether it be Obama's refusal to put a concise deal on the table, or the Tea Party wing of the Republican party insistence that there be no revenue enhancements in any kind of deal, the result will be the same as it has been for the past 12 years for congress and the presidency: abject failure, and a hike in interest rates.
Without poring over details of how the past three years have played out, we are approaching a seminal moment in the history of the United States of America and in the financial policies post-Bretton Woods. Nixon's closure of the gold window was the first inflection point, at which currencies were no longer backed by gold. The accumulation of nearly $15 trillion in debt and the failure of government to not only foresee the problem, but then to not be able to deal with it, is the second great event.
With just seven days until the government begins defaulting on some debt, markets are skittering about like schoolchildren at recess and there's nobody in his or her right mind who wishes to be exposed to inordinate risk at this point. With each passing day that there is not a deal and signed legislation increasing the debt ceiling, expect markets to recoil in terror. By Friday, we could be witnessing an all-out crash as many participants choose to sit on the side rather than engage in the dizzying dance of death.
The outflows from stocks were seen mostly at the end of the day, when the major indices peaked just after 2:00 pm EDT. From there until the close it was nearly free-fall, with all of the day's tiny gains wiped out in a flurry of near-panic selling.
One hates to beat a dead horse, but this debt ceiling debate is still alive and kicking, barely, and it will dominate financial news until something - anything - is done to rectify the situation. Absolutely nobody is holding their breath waiting for that, however.
Naturally, there were swing trades and day trades made during the session, but nobody is staking out new positions in the most uncertain market of the past two-and-a-half years.
Dow 12,501.30, -91.50 (0.73%)
NASDAQ 2,839.96, -2.84 (0.10%)
S&P 500 1,331.94, -5.49 (0.41%)
NYSE Composite 8,331.67, -25.90 (0.31%)
Declining issues overwhelmed advancers for the second straight day this week, 4096-2434. NASDAQ new highs 29; new lows: 36. NYSE new highs: 44; new lows: 46. Combined totals: 73 new highs, 82 new lows, a slight shift to the negative for that particular indicator. Volume was reliatively light, as expected.
NASDAQ Volume 1,716,556,125
NYSE Volume 3,988,655,750
Crude oil advanced modestly, up 39 cents, to $99.59. Gold racked up another record high, gaining $4.60, to $1,616.80. Silver notched a 38 cent increase, to $40.70.
The S&P/Case-Shiller Home Price index showed marginal gains of one per cent in the month-to-month numbers, but most of the 20 cites surveyed showed declines on a year-over-year basis.
New home sales sunk to 312,000 on an annualized basis in June. Some analysts were calling the number "unexpected," while the home construction industry has been in outright depression for more than three years.
Any further declines will be "expected" and those acting surprised will be executed by a firing squad of Mexican construction workers, as soon as they can be rounded up from immigration detention centers. (That's a joke, folks.)
Stocks, however, as money substitutes, aren't taking the "no news" as good news. In fact, markets are absolutely terrified, not that the current congress and president will find a solution by the artificial August 2 deadline, but that their efforts will be so futile and pointless that the ratings agencies will lower the US debt/credit rating from its now pristine AAA sovereign status.
While the majority of people neither understand nor care about this delicious little surprise coming down the road like a 60-ton freighter, Wall Street and other governments are frightened out of their boots because a drop in the US rating would add something like $100 billion of cost - in interest - to the annual federal budget, which is already way out of whack.
Whether it be Obama's refusal to put a concise deal on the table, or the Tea Party wing of the Republican party insistence that there be no revenue enhancements in any kind of deal, the result will be the same as it has been for the past 12 years for congress and the presidency: abject failure, and a hike in interest rates.
Without poring over details of how the past three years have played out, we are approaching a seminal moment in the history of the United States of America and in the financial policies post-Bretton Woods. Nixon's closure of the gold window was the first inflection point, at which currencies were no longer backed by gold. The accumulation of nearly $15 trillion in debt and the failure of government to not only foresee the problem, but then to not be able to deal with it, is the second great event.
With just seven days until the government begins defaulting on some debt, markets are skittering about like schoolchildren at recess and there's nobody in his or her right mind who wishes to be exposed to inordinate risk at this point. With each passing day that there is not a deal and signed legislation increasing the debt ceiling, expect markets to recoil in terror. By Friday, we could be witnessing an all-out crash as many participants choose to sit on the side rather than engage in the dizzying dance of death.
The outflows from stocks were seen mostly at the end of the day, when the major indices peaked just after 2:00 pm EDT. From there until the close it was nearly free-fall, with all of the day's tiny gains wiped out in a flurry of near-panic selling.
One hates to beat a dead horse, but this debt ceiling debate is still alive and kicking, barely, and it will dominate financial news until something - anything - is done to rectify the situation. Absolutely nobody is holding their breath waiting for that, however.
Naturally, there were swing trades and day trades made during the session, but nobody is staking out new positions in the most uncertain market of the past two-and-a-half years.
Dow 12,501.30, -91.50 (0.73%)
NASDAQ 2,839.96, -2.84 (0.10%)
S&P 500 1,331.94, -5.49 (0.41%)
NYSE Composite 8,331.67, -25.90 (0.31%)
Declining issues overwhelmed advancers for the second straight day this week, 4096-2434. NASDAQ new highs 29; new lows: 36. NYSE new highs: 44; new lows: 46. Combined totals: 73 new highs, 82 new lows, a slight shift to the negative for that particular indicator. Volume was reliatively light, as expected.
NASDAQ Volume 1,716,556,125
NYSE Volume 3,988,655,750
Crude oil advanced modestly, up 39 cents, to $99.59. Gold racked up another record high, gaining $4.60, to $1,616.80. Silver notched a 38 cent increase, to $40.70.
The S&P/Case-Shiller Home Price index showed marginal gains of one per cent in the month-to-month numbers, but most of the 20 cites surveyed showed declines on a year-over-year basis.
New home sales sunk to 312,000 on an annualized basis in June. Some analysts were calling the number "unexpected," while the home construction industry has been in outright depression for more than three years.
Any further declines will be "expected" and those acting surprised will be executed by a firing squad of Mexican construction workers, as soon as they can be rounded up from immigration detention centers. (That's a joke, folks.)
Monday, July 25, 2011
No Debt Ceiling Deal for Now; Markets Jittery
Just in case anyone was keeping score, the United States of America - the world's largest creditor, by far - will begin defaulting on its debts on August 2, 2011. That is a date just eight days away and Wall Street seems to not be enjoying the drama one bit.
It's odd, considering how many of the professional politicians in DC have been hired, bought and paid for by the elite banking and corporate interests of Wall Street. Have the patsy politicians found a new sugar daddy? Are they just "acting out?" No matter the case, there's no deal on raising the debt ceiling, though there are competing scenarios and bills floating around the nation's capitol.
Other than the usual market noise about earnings reports, there was little else to report from the global financial capitol, except that they were all waiting on some clarity from Washington.
Thus, a day which started badly and in the middle was looking good, ended badly, as stocks fell in the final hour of trading. So long as the clown show in Washington continues, putting the finances of the entire world in a cross between jeopardy and limbo, expect more of these kinds of days in stocks. Wash, rinse, repeat until the weekend.
Dow 12,592.80, -88.36 (0.70%)
NASDAQ 2,842.80, -16.03 (0.56%)
S&P 500 1,337.43, -7.59 (0.56%)
NYSE Composite 8,357.57, -50.63 (0.60%)
Losers dominated winners, with 1474 stocks up ad 5133 down. On the NASDAQ, there were 41 new highs and 26 new lows. Over at the NYSE, a similar scenario, with 58 new highs and 38 new lows. The combined total of 99 new highs and 64 new lows suggests a very soft market, struggling to justify value. Volume was at an even slower pace than normal, which is uncomfortable, to say the least, and downright discouraging, in a real sense.
NASDAQ Volume 1,585,768,125
NYSE Volume 3,560,761,250
With the dollar up strongly against the Euro, oil took a bit of a breather, losing 67 cents to finish the day at $99.20. With all of the uncertainty in global finance, gold investors are stocking up, sending the yellow metal to a record close of $1,612.20, up $11.20 on the day. Silver did not fare quite as well, but still managed a healthy gain of 24 cents, at $40.36 per ounce.
Thirty-two NFL player reps ratified a new labor agreement which will be presented to players for final approval, ending the 132-day lockout and settling one of the more thorny issues of the summer. Now, if congress could only act like responsible adults and do what the NFL and its owners and players have done...
UPDATE: After the closing bell, Netflix (NFLX) beat earnings estimates but came up short on total revenues, sending the stock down more than 8% in after-hours trading.
A new nominee has emerged for Analyst Moron of the Month as Randall Dishmon, portfolio manager for the Oppenheimer Global Value fund, explains why its time to get bullish on Citigroup (C) and Bank of America (BAC).
Dishmon, who desperately needs a new barber, says BofA is "wildly misunderstood" and that Citigroup is "one of the best, if not the best internatonal banking franchise ever assembled."
Among other Dishmon recommendations are Google (GOOG) - now that it's gone up 140 points in the past month - and Diagio (DEO), on the assumption that China and India want to imbibe regularly on their premium liquor brands. Diagio has nearly doubled in the past 18 months.
Maybe, just maybe, Dishmon should lay off the Diaigio booze and stick to plain old hookers and coke.
It's odd, considering how many of the professional politicians in DC have been hired, bought and paid for by the elite banking and corporate interests of Wall Street. Have the patsy politicians found a new sugar daddy? Are they just "acting out?" No matter the case, there's no deal on raising the debt ceiling, though there are competing scenarios and bills floating around the nation's capitol.
Other than the usual market noise about earnings reports, there was little else to report from the global financial capitol, except that they were all waiting on some clarity from Washington.
Thus, a day which started badly and in the middle was looking good, ended badly, as stocks fell in the final hour of trading. So long as the clown show in Washington continues, putting the finances of the entire world in a cross between jeopardy and limbo, expect more of these kinds of days in stocks. Wash, rinse, repeat until the weekend.
Dow 12,592.80, -88.36 (0.70%)
NASDAQ 2,842.80, -16.03 (0.56%)
S&P 500 1,337.43, -7.59 (0.56%)
NYSE Composite 8,357.57, -50.63 (0.60%)
Losers dominated winners, with 1474 stocks up ad 5133 down. On the NASDAQ, there were 41 new highs and 26 new lows. Over at the NYSE, a similar scenario, with 58 new highs and 38 new lows. The combined total of 99 new highs and 64 new lows suggests a very soft market, struggling to justify value. Volume was at an even slower pace than normal, which is uncomfortable, to say the least, and downright discouraging, in a real sense.
NASDAQ Volume 1,585,768,125
NYSE Volume 3,560,761,250
With the dollar up strongly against the Euro, oil took a bit of a breather, losing 67 cents to finish the day at $99.20. With all of the uncertainty in global finance, gold investors are stocking up, sending the yellow metal to a record close of $1,612.20, up $11.20 on the day. Silver did not fare quite as well, but still managed a healthy gain of 24 cents, at $40.36 per ounce.
Thirty-two NFL player reps ratified a new labor agreement which will be presented to players for final approval, ending the 132-day lockout and settling one of the more thorny issues of the summer. Now, if congress could only act like responsible adults and do what the NFL and its owners and players have done...
UPDATE: After the closing bell, Netflix (NFLX) beat earnings estimates but came up short on total revenues, sending the stock down more than 8% in after-hours trading.
A new nominee has emerged for Analyst Moron of the Month as Randall Dishmon, portfolio manager for the Oppenheimer Global Value fund, explains why its time to get bullish on Citigroup (C) and Bank of America (BAC).
Dishmon, who desperately needs a new barber, says BofA is "wildly misunderstood" and that Citigroup is "one of the best, if not the best internatonal banking franchise ever assembled."
Among other Dishmon recommendations are Google (GOOG) - now that it's gone up 140 points in the past month - and Diagio (DEO), on the assumption that China and India want to imbibe regularly on their premium liquor brands. Diagio has nearly doubled in the past 18 months.
Maybe, just maybe, Dishmon should lay off the Diaigio booze and stick to plain old hookers and coke.
Friday, July 22, 2011
Week Ends with Split Decision; Gold, Silver on the Rise
After a week of ups and downs, it's probably appropriate the Friday ended with a bifurcated market: the Dow and NYSE down and the S&P and NASDAQ up.
It makes little sense to the casual observer, though the condition becomes more understandable if one is an insider, playing long and short, hedging positions, trading momentum and running super-fast computers in the 2011 version of "timing the market."
For the rest of us, forget it. Stocks have become nearly impossible to trade with any success unless one is truly gifted or just dumb lucky.
The White House and congress still haven't decided what to do about raising the debt ceiling. The Republicans' ploy of passing their ridiculous Cut, Cap and Balance bill in the House is a desperate and dangerous maneuver, costing more time as the ratings agencies and the rest of the civilized planet look on with alternate views of shock, horror and amusement. The continued stalemate virtually assures that the United States will receive a number of ratings downgrades no matter what happens from here on out.
By comparison, Europe appears far worse, though they have more than enough gall and arrogance to keep the media and the ratings agencies in check for the time being. With all of the Mediterranean nations in some sort of trouble or already having been bailed out, the European Union seems to be held together by duct tape and crewing gum.
There was nearly nothing worth reporting about this week, as the Ponzi schemers made it through another week without anybody receiving a subpoena or getting caught cheating. Score another one for the rich guys.
Dow 12,681.16, -43.25 (0.34%)
NASDAQ 2,858.83, +24.40 (0.86%)
S&P 500 1,345.02, +1.22 (0.09%)
NYSE Composite 8,408.20, -3.25 (0.04%)
Advancing issues narrowly beat decliners, 3293-3194. The NASDAQ showed 79 new highs and 23 new lows, while the NYSE registered 102 new highs and 24 new lows. The combined total of 181 new highs and 47 new lows is about par for the course in an upward-sloping market. Volume, however, dipped back into apathetic mid-summer malaise.
NASDAQ Volume 1,674,379,250
NYSE Volume 3,538,032,250
The commodity markets gave both good and bad news. Oil was up another 74 cents, to $99.87, which is bad news for everybody except oil company executives and Arab sheiks. The precious metals bore most of the good news, with gold up $14.50, to $1,601.50, and silver higher by $1.17, to $40.12. Silver appears ready to head into orbit, now that the new Hong Kong silver futures vehicle is offering some variation in pricing.
As the US economy becomes more and more bad theater, expect gold and silver to grind higher, with most of the explosive moves in silver, which is still underpriced at a 40-1 gold-silver ratio. The long-term trend is 16-1.
Today, House Republican "leader" John Boehner walked out of debt ceiling negotiations with the president, saying the two sides, "couldn't connect." No kidding, John, when you won't even allow for closing tax loopholes on millionaires and billionaires when we're suffering the worst depression of all time.
Boehner, and the rest of the "Tea Party" Nancies ought to be ashamed of what they're doing to the country. When the collapse comes, they should be handed the great bulk of the blame. President Obama has tried to deal with them, but it has become a losing battle.
God save us.
It makes little sense to the casual observer, though the condition becomes more understandable if one is an insider, playing long and short, hedging positions, trading momentum and running super-fast computers in the 2011 version of "timing the market."
For the rest of us, forget it. Stocks have become nearly impossible to trade with any success unless one is truly gifted or just dumb lucky.
The White House and congress still haven't decided what to do about raising the debt ceiling. The Republicans' ploy of passing their ridiculous Cut, Cap and Balance bill in the House is a desperate and dangerous maneuver, costing more time as the ratings agencies and the rest of the civilized planet look on with alternate views of shock, horror and amusement. The continued stalemate virtually assures that the United States will receive a number of ratings downgrades no matter what happens from here on out.
By comparison, Europe appears far worse, though they have more than enough gall and arrogance to keep the media and the ratings agencies in check for the time being. With all of the Mediterranean nations in some sort of trouble or already having been bailed out, the European Union seems to be held together by duct tape and crewing gum.
There was nearly nothing worth reporting about this week, as the Ponzi schemers made it through another week without anybody receiving a subpoena or getting caught cheating. Score another one for the rich guys.
Dow 12,681.16, -43.25 (0.34%)
NASDAQ 2,858.83, +24.40 (0.86%)
S&P 500 1,345.02, +1.22 (0.09%)
NYSE Composite 8,408.20, -3.25 (0.04%)
Advancing issues narrowly beat decliners, 3293-3194. The NASDAQ showed 79 new highs and 23 new lows, while the NYSE registered 102 new highs and 24 new lows. The combined total of 181 new highs and 47 new lows is about par for the course in an upward-sloping market. Volume, however, dipped back into apathetic mid-summer malaise.
NASDAQ Volume 1,674,379,250
NYSE Volume 3,538,032,250
The commodity markets gave both good and bad news. Oil was up another 74 cents, to $99.87, which is bad news for everybody except oil company executives and Arab sheiks. The precious metals bore most of the good news, with gold up $14.50, to $1,601.50, and silver higher by $1.17, to $40.12. Silver appears ready to head into orbit, now that the new Hong Kong silver futures vehicle is offering some variation in pricing.
As the US economy becomes more and more bad theater, expect gold and silver to grind higher, with most of the explosive moves in silver, which is still underpriced at a 40-1 gold-silver ratio. The long-term trend is 16-1.
Today, House Republican "leader" John Boehner walked out of debt ceiling negotiations with the president, saying the two sides, "couldn't connect." No kidding, John, when you won't even allow for closing tax loopholes on millionaires and billionaires when we're suffering the worst depression of all time.
Boehner, and the rest of the "Tea Party" Nancies ought to be ashamed of what they're doing to the country. When the collapse comes, they should be handed the great bulk of the blame. President Obama has tried to deal with them, but it has become a losing battle.
God save us.
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