To believe that a late-day rally, sending the Dow Jones Industrials from a loss of over 200 points to a gain of 150 points in the final hour of trading, is anything more than make-believe, engineered by the Fed, Treasury and other member's of the President's Working Group, aka, the Plunge Protection Team (PPT), would be sheer folly.
This latest move by the market manipulators is so blatantly contrived and designed to keep the American public believing all is well that is defies explanation. One of the headline stories on Yahoo News, Stocks Avoid Bear Market Territory Thanks to Late Day Rally cites "vague assurances from Federal Reserve Chairman Ben Bernanke" as the cause for the rally, but never goes on to explain just what those "vague assurances" are. Surely the editors made up the line since the eminently-powerless Bernanke was testifying before the completely-clueless, corrupt and complicit congress today.
Sounds good, but we're not buying it.
The S&P was the real target. At 3:15 in the afternoon, the S&P was nestled comfortably in bear market territory, down roughly 20 points at 1080. By the end of the session, just 45 minutes later, the index was sitting at nearly 1024, a 45-point move in 45 minutes. At that rate - a point a minute - the S&P should be in record territory above 1550 by noon on Thursday, so hurry up and load up on those stocks, kids, the good times are here to stay!
This market is rubbish, as is the US government and our once-healthy, but now debt-ridden, jobless, service economy. Anybody invested in stocks with money that is for serious puposes should be seeking professional mental health advice. US stock markets have been called casinos, but that description gives casinos a bad name.
That's all this writer can stand for today. OK, a little more...
The number of new lows today is 100X larger than the number of new highs, and the market is going up? Please, this is only a golden opportunity to short this with everything one has, unless, as is usually the case, it gaps lower at the open tomorrow. 1962 new lows means that almost 1/3 of the entire US stock market made a new low today. Perhaps those "vague assurances" from Bernanke's lips were for unlimited funds for failed banks and just about any other company in these once-great, but now completely fictionalized United States.
Dow 10,808.71, +153.41 (1.44%)
NASDAQ 2,404.82, +68.99 (2.95%)
S&P 500 1,123.95, +24.72 (2.25%)
NYSE Composite 6,722.98, +148.69 (2.26%)
NASDAQ Volume 3,122,499,000
NYSE Volume 7,875,459,500
Combined NYSE & NASDAQ Advance - Decline: 4252-2410
Combined NYSE & NASDAQ New highs - New lows: 18--1962 (full panic mode)
WTI crude oil: 75.67, -1.94
Gold: 1624.20, -36.70
Silver: 30.23, -0.26
Tuesday, October 4, 2011
Monday, October 3, 2011
Stocks in Panic Mode; Bankruptcy Lines Forming: High-Low Indicator at Extreme; Social Fabric Shredding
The Markets
Stocks began the fourth quarter the same way they ended the third, with waves of selling on fears of a Greek default and recession in the US and Europe.
After an initial lift from fair economic data, especially the ISM index posting a 51.6 number after a 50.6 reading in August and August construction spending showing a 1.4% gain, US stocks drifted lower throughout the day, with the final onslaught taking the S&P 500 to a close of 1099.21, the first time the widely-watched index closed below 1100 since September 8, 2010 (1098.87) and well below the recent low of 1120.76 (August 10). The S&P now stands (or slouches, as the case may be) less than nine points from official bear market territory, which would commence at 1090.89. The S&P is down 12.6% for the year.
The other major indices are also closing in on bear market territory. Another day like today would send the NASDAQ down more than 20% from its April 29 highs. The Dow Jones Industrials are faring best of the bad lot, though still just 375 points from marking a bear market.
Losses began overnight in Asian markets and cascaded through Europe and into the Americas. Most European bourses have been in bear markets for more than a few months.
News flows from Europe were not encouraging as the 17 countries which are backing Greek bailout funds met again on Monday but failed to come to an agreement on the second tranche of aid to the failing EU member.
That sent stocks into negative territory for the remainder of the session, closing at the lows of the day on very heavy volume in a broad decline. All 12 sectors were lower on the day, led by capital goods, financials and energy. WTI crude oil closed at its lowest price in over a year, fueling speculation that lower gas prices are on the way as weather cools and demand falls.
Dow 10,655.30, -258.08 (2.36%)
NASDAQ 2,335.83, -79.57 (3.29%)
S&P 500 1,099.23, -32.19 (2.85%)
NYSE Compos 6,571.45, -220.20 (3.24%)
NASDAQ Volume 2,523,549,250
NYSE Volume 6,714,723,500
Combined NYSE & NASDAQ Advance - Decline: 772-5877
Combined NYSE & NASDAQ New highs - New lows: 19-1405
WTI crude oil: 77.61, -1.59
Gold: 1654.40, +29.60
Silver: 30.33, +0.36
After the bankruptcy filing of Swedish automaker Saab last month signaled the coming onrush of large corporate bankruptcies, three companies have been making news on that front.
Eastman Kodak (EK), which has hired the law firm of Jones Day to explore "reorganization" possibilities, rallied back strongly after Friday's stock collapse. The company's shares are at a bargain-basement level of 1.34, a 77% gain on the day. Reports that creditors and investors are speaking to advisors have surfaced as the company continues to burn through $600-700 million annually off their broken business model, negatively impacted by the advent of digital photography.
Shares of American Airlines (AMR) were halted today amid rumors of bankruptcy filing. The oldest US legacy carrier lost 33% today, closing at 1.98.
The banking sector continues to be rocked by the continuing mortgage morass, new regulations and now, computer glitches. Bank of America's website and online banking functions were unavailable to millions of customers for a long time over the past few days, frustrating and infuriating its customer base just days after announcing that debit card users would face a five-dollar-per-month fee beginning in January for the privilege of spending their own money. Shares of the nation's largest bank closed down 59 cents, at 5.53, the lowest price since the depths of the financial crisis, when the stock closed at 3.12 on March 6, 2009.
Along with the S&P 500 breaking below 1100, the number of new lows today was a screaming signal to "get out of Dodge" as quickly as possible. Those 1405 new lows are at a level not seen since autumn of 2008, when the entire financial system was on its knees and needed a $700 billion "fiX" courtesy of a deal ripped from US taxpayers by then-Treasury Secretary (thief) Hank Paulson and Fed Chairman Ben Bernanke. No other indicator has been as reliable or accurate in picking crashes than the New high - New low indicator. According to the indication that has been flashing for weeks, a major down-leg is about to commence, especially with the NYSE, Dow, NASDAQ and S&P 500 all closing below support levels during the recent two-month slide.
This is a potentially world-shattering situation that has been developing for not just the past two months, but over the past three years. Stocks could free-fall as financial institutions in Europe, Asia and in the US face severe liquidity and solvency issues and sovereigns are unable to save them this time, concerned, rightfully so, with their own continued existence. The level of public distrust has risen to unprecedented levels. Over 700 people were arrested in New York, trapped on the Brooklyn Bridge (see video below) by New York City police funded by JP Morgan Chase.
This is only the tip of the news iceberg the mainstream media doesn't want the US public to see, hear or read. Peaceful protests in Boston, New York, St. Louis and Kansas City have taken on new life, resulted in mass arrests and are a threat to the ruling elite.
The entire human population of the planet is teetering on the brink of mass rioting and localized anarchy.
Stocks began the fourth quarter the same way they ended the third, with waves of selling on fears of a Greek default and recession in the US and Europe.
After an initial lift from fair economic data, especially the ISM index posting a 51.6 number after a 50.6 reading in August and August construction spending showing a 1.4% gain, US stocks drifted lower throughout the day, with the final onslaught taking the S&P 500 to a close of 1099.21, the first time the widely-watched index closed below 1100 since September 8, 2010 (1098.87) and well below the recent low of 1120.76 (August 10). The S&P now stands (or slouches, as the case may be) less than nine points from official bear market territory, which would commence at 1090.89. The S&P is down 12.6% for the year.
The other major indices are also closing in on bear market territory. Another day like today would send the NASDAQ down more than 20% from its April 29 highs. The Dow Jones Industrials are faring best of the bad lot, though still just 375 points from marking a bear market.
Losses began overnight in Asian markets and cascaded through Europe and into the Americas. Most European bourses have been in bear markets for more than a few months.
News flows from Europe were not encouraging as the 17 countries which are backing Greek bailout funds met again on Monday but failed to come to an agreement on the second tranche of aid to the failing EU member.
That sent stocks into negative territory for the remainder of the session, closing at the lows of the day on very heavy volume in a broad decline. All 12 sectors were lower on the day, led by capital goods, financials and energy. WTI crude oil closed at its lowest price in over a year, fueling speculation that lower gas prices are on the way as weather cools and demand falls.
Dow 10,655.30, -258.08 (2.36%)
NASDAQ 2,335.83, -79.57 (3.29%)
S&P 500 1,099.23, -32.19 (2.85%)
NYSE Compos 6,571.45, -220.20 (3.24%)
NASDAQ Volume 2,523,549,250
NYSE Volume 6,714,723,500
Combined NYSE & NASDAQ Advance - Decline: 772-5877
Combined NYSE & NASDAQ New highs - New lows: 19-1405
WTI crude oil: 77.61, -1.59
Gold: 1654.40, +29.60
Silver: 30.33, +0.36
After the bankruptcy filing of Swedish automaker Saab last month signaled the coming onrush of large corporate bankruptcies, three companies have been making news on that front.
Eastman Kodak (EK), which has hired the law firm of Jones Day to explore "reorganization" possibilities, rallied back strongly after Friday's stock collapse. The company's shares are at a bargain-basement level of 1.34, a 77% gain on the day. Reports that creditors and investors are speaking to advisors have surfaced as the company continues to burn through $600-700 million annually off their broken business model, negatively impacted by the advent of digital photography.
Shares of American Airlines (AMR) were halted today amid rumors of bankruptcy filing. The oldest US legacy carrier lost 33% today, closing at 1.98.
The banking sector continues to be rocked by the continuing mortgage morass, new regulations and now, computer glitches. Bank of America's website and online banking functions were unavailable to millions of customers for a long time over the past few days, frustrating and infuriating its customer base just days after announcing that debit card users would face a five-dollar-per-month fee beginning in January for the privilege of spending their own money. Shares of the nation's largest bank closed down 59 cents, at 5.53, the lowest price since the depths of the financial crisis, when the stock closed at 3.12 on March 6, 2009.
Along with the S&P 500 breaking below 1100, the number of new lows today was a screaming signal to "get out of Dodge" as quickly as possible. Those 1405 new lows are at a level not seen since autumn of 2008, when the entire financial system was on its knees and needed a $700 billion "fiX" courtesy of a deal ripped from US taxpayers by then-Treasury Secretary (thief) Hank Paulson and Fed Chairman Ben Bernanke. No other indicator has been as reliable or accurate in picking crashes than the New high - New low indicator. According to the indication that has been flashing for weeks, a major down-leg is about to commence, especially with the NYSE, Dow, NASDAQ and S&P 500 all closing below support levels during the recent two-month slide.
This is a potentially world-shattering situation that has been developing for not just the past two months, but over the past three years. Stocks could free-fall as financial institutions in Europe, Asia and in the US face severe liquidity and solvency issues and sovereigns are unable to save them this time, concerned, rightfully so, with their own continued existence. The level of public distrust has risen to unprecedented levels. Over 700 people were arrested in New York, trapped on the Brooklyn Bridge (see video below) by New York City police funded by JP Morgan Chase.
This is only the tip of the news iceberg the mainstream media doesn't want the US public to see, hear or read. Peaceful protests in Boston, New York, St. Louis and Kansas City have taken on new life, resulted in mass arrests and are a threat to the ruling elite.
The entire human population of the planet is teetering on the brink of mass rioting and localized anarchy.
Learning More About Bankruptcy's Fresh Start
There are quite a few people in America that are on the brink of survival, some having lost their jobs, others, their homes, some, both. Many of these people can help themselves out with a little bit of knowledge about how the bankruptcy laws in their states - and throughout the United States - work, possibly saving themselves from the pitfalls of endless debt, homelessness or worse.
One way to get started learning more about bankruptcy and how it gives individuals and companies a fresh start, would be to sign up for a bankruptcy class online. Understanding the basic precepts and concepts of bankruptcy and how the process operates is essential to anyone facing serious economic issues.
An online bankruptcy course can give individuals fresh insight into what debts can be discharged through bankruptcy and why most of the time an individual or family can remain in one's home and also keep most personal assets. Most people never get close to bankruptcy or a US bankruptcy court to understand that a bankruptcy filing is an orderly, honorable process that allows people to retain some, if not most, of their valuable assets, along with their dignity and self-worth.
Another step toward resolving debt issues would be to enroll in a credit counseling course, either for oneself, or to offer services to people who are on the edge and can't pay bills. While bankruptcy filings generally require the expertise of an attorney well versed in the laws of that particular area of practice, credit counseling requires no degree and only rudimentary training. Anyone with a solid background in finance or math can easily learn the basics of credit counseling and immediately being helping out oneself or others with sound advice.
One way to get started learning more about bankruptcy and how it gives individuals and companies a fresh start, would be to sign up for a bankruptcy class online. Understanding the basic precepts and concepts of bankruptcy and how the process operates is essential to anyone facing serious economic issues.
An online bankruptcy course can give individuals fresh insight into what debts can be discharged through bankruptcy and why most of the time an individual or family can remain in one's home and also keep most personal assets. Most people never get close to bankruptcy or a US bankruptcy court to understand that a bankruptcy filing is an orderly, honorable process that allows people to retain some, if not most, of their valuable assets, along with their dignity and self-worth.
Another step toward resolving debt issues would be to enroll in a credit counseling course, either for oneself, or to offer services to people who are on the edge and can't pay bills. While bankruptcy filings generally require the expertise of an attorney well versed in the laws of that particular area of practice, credit counseling requires no degree and only rudimentary training. Anyone with a solid background in finance or math can easily learn the basics of credit counseling and immediately being helping out oneself or others with sound advice.
Sisterly Love
Written by Sherri Hicks
Last summer my sister and I moved to New York from the sweltering Miami. Her job in the fashion industry brought her to the city that never sleeps and I thought I’d just quit my barista job and tag along. We had it all planned out, live in a shoebox, sleep in the same bed, keep the ceiling fans running and windows open to save on our power bill, and cook every night so we can spend money on fancy dinners on the weekends. It seemed like the perfect move towards sisterly bonding. However, three weeks into sweating in our sleep, we decided the fans weren’t cutting it. I broke down on a Monday afternoon in July and looked upHttp://NEWYORKenergyrates.com to get the AC crankin’. Ceiling fans in 90 degree weather wasn’t our only fail. Turns out, Sarah kicks in her sleep. I didn’t get a restful night for six months and we finally decided it was time to give in. We splurged for a two-bedroom uptown and have never looked back. Of course, we don’t exactly eat fancy dinners on the weekends. Unless roast beef instead of PB&J counts.
Friday, September 30, 2011
Third Quarter a Stinker for Stocks; NASDAQ, SP Down 14%
The Markets
The third quarter officially ended today on September 30, and, unlike the usual quarter-ending, window-dressing ramp job, stocks suffered through their worst day of the week, in a month and quarter that was one of the worst of recent memory - and there have been some bad ones, recently.
The Dow Jones Industrials ended the quarter off more than 12%. The S&P and NASDAQ were rocked lower by 14%.
In simple terms, anybody in an index fund with $100,000 at the end of June, now has somewhere between $86,000 and $88,000. That may not sound like much, but $12-14,000 is roughly equivalent to the wages for a minimum-wage worker for a year. That's not a good sign for the bottom income earners in American society, because it means that the "wealth creators" so often cited by Republican office-seekers, have one minimum wage job less than they can create, should they now choose to part with some of that hard-earned (and easily lost) cash.
On the day, stocks started lower, stabilized, but fell off a veritable cliff into the close. There was no window dressing, no PPT push, no ETF re-balancing or anything to keep stocks afloat into the close. Nobody seemed willing to take significant positions in stocks, even though the 4th quarter is historically the best for stocks. The levels of gloom and doom rival those of the disastrous 4th quarter of 2008, when the global financial crisis was first realized and stocks gyrated lower and lower and lower.
Not only were stocks affected negatively during the month and quarter, but most commodities also fell by extraordinary percentages, especially gold and silver, which were whacked roughly 16 and 25% respectively. There was no place to hide for even the most conservative investors. Yields on Treasuries fell like rocks off a precipice. Bond yields for the 2-year, 5-year and 10-year note fell 40-45% in the quarter. The benchmark 10-year note closed out the quarter at a yield of 1.90%. The 30-year bond was the best performer of an ugly bunch, with yields falling only 35% since the end of June.
Crude oil was down 17% in the quarter, though gas prices at the pump have barely matched the decline. With gas prices nearly $4.00 a gallon at the beginning of summer, the average price - if 17% is the expected decline - should be around $3.35, though the AAA Fuel Gauge Report has the national average at $3.44. For perspective on how high real gasoline prices are, the price at the same time last year was a celebratory $2.69.
In company news, Eastman Kodak (EK), once a proud member of the Dow 30, fell 54% on the day amid reports that the company had hired the law firm Jones Day to discuss reorganization plans or a bankruptcy filing. Shares of Eastman Kodak dropped 91 cents to close at 0.78, an historic low.
Bank of America (BAC) plans to begin charging debit card users a $5 monthly fee in January, 2012, due to changes in the amounts banks can charge merchants per debit card use. BAC finished the day 23 cents lower, at 6.12.
Big corporate bankruptcies are dead ahead, likely to commence in the fourth quarter and accelerate through the first three quarters of 2012. Third quarter earnings reports kick off on October 11, when Alcoa (AA) reports after the bell.
Thank goodness for the baseball playoffs and football. Yeesh!
Dow 10,913.38 240.60 (2.16%)
NASDAQ 2,415.40 65.36 (2.63%)
S&P 500 1,131.42 28.98 (2.50%)
NYSE Compos 6,791.65 183.26 (2.63%)
NASDAQ Volume 2,081,539,875.00
NYSE Volume 5,323,945,500
Combined NYSE & NASDAQ Advance - Decline: 1442-5118
Combined NYSE & NASDAQ New highs - New lows: 31-515 (look out below!)
WTI crude oil: 78.65, -3.47
Gold: 1623.80, +7.90
Silver: 29.94, -0.73
NASDAQ 2,415.40 65.36 (2.63%)
S&P 500 1,131.42 28.98 (2.50%)
NYSE Compos 6,791.65 183.26 (2.63%)
NASDAQ Volume 2,081,539,875.00
NYSE Volume 5,323,945,500
Combined NYSE & NASDAQ Advance - Decline: 1442-5118
Combined NYSE & NASDAQ New highs - New lows: 31-515 (look out below!)
WTI crude oil: 78.65, -3.47
Gold: 1623.80, +7.90
Silver: 29.94, -0.73
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