Yesterday's vapor rally was actually all about options expiration, it turns out, because as quickly as the control freak rats running Wall Street's biggest brokerages went piling in, they scrambled back out today, leaving the momentum stocks stuck in lifeless atrophy, hollowed out dead carcasses once the meat was taken from their bones.
Until such a time that the criminal element that brought us the financial collapse of 2008 is rounded up and summarily dismissed - which will likely never happen - expect more events such as the past two days to become more of the norm than the exception. Wall Street is a slimy, cheater's paradise where skimming a few decimal points worth of profit makes one a hero in a market that makes about as much sense - from a fundamental basis - as the dribbling rant of an imbecile.
The problem is that while imbeciles are generally disregarded and institutionalized, the leaders of the Wall Street horde are treated like rock stars in the financial realm, supposedly blessed with infinite knowledge of markets, economics and business, when in fact they are no better than underworld goons adept only at making the best of a rigged game.
There really is no sense investing in stocks, though some savvy players may be able - for a time - to make some money day-trading or playing the options game. The odds for the individual investor are stacked heavily against them and in favor of the controlling crowd that is the brutish Wall Street gang, who controls the direction of trades via futures manipulation, high frequency trading (HFT) and nearly unlimited amounts of money.
One might be inclined to take some pleasure in seeing the price of oil drop today in hopes that retail gas prices would soon follow, though it's likely only temporary and a hedged-out ploy at best, a cynical trade on the hopes and dreams of the average consumer that is just as likely to turn back up tomorrow as continue its decline.
Everything related to stocks, commodities and currencies is completely manipulated, if not by the bankers and brokerages, then by the central banks, and false. Still, we play along, hoping that some day, something will change the status quo and markets will once again be recognizable. It's a fruitless hope for most, as those in control will stay in control whether the markets go up, down or sideways.
The real shame is the fate of millions of Americans and citizens of other developed nations who have put their faith and money into such a sham of leadership, which shows almost daily its contempt for morality and principled investing and governance. A day of reckoning may come, but those worst affected will be the ill-informed general public which has dutifully played in the sandbox of the elitists.
Tomorrow's fiasco de jour will focus on long-dated Spanish bond auctions and the usual nonsense that is the weekly unemployment claims figure.
Dow 13,032.75 82.79 (0.63%)
NASDAQ 3,031.45 11.37 (0.37%)
S&P 500 1,385.14 5.64 (0.41%)
NYSE Compos... 8,030.39 33.69 (0.42%)
NASDAQ Volume... 1,573,320,125.00
NYSE Volume 3,436,646,250
Combined NYSE & NASDAQ Advance - Decline: 1759-3788
Combined NYSE & NASDAQ New highs - New lows: 105-92
WTI crude oil: 102.67, -1.53
Gold: 1,639.60, -11.50
Silver: 31.49, -0.19
Wednesday, April 18, 2012
Tuesday, April 17, 2012
On Tax Return Day, Wall Street Rocks Home a Winner
Apparently, the people (or machines) that trade on Wall Street have already done their taxes and owe nothing to the government, because a lot of cash went to work today, bidding up stocks closer to 3 1/2 year highs.
Although volume was light, that's become the new normal, so unless today's monster move was nothing more than bidding up prices in advance of options expiry, US businesses look to be in outstanding shape.
Earnings thus far for the first quarter have been better than expected for the most part, and, better yet, there haven't been any nasty developments or dissonant noise from Europe.
The questions surrounding recent moves in stocks are various and diverse. Are we extending the three-year-plus bull market or is this simply misplaced euphoria? Will fiscal policy of high deficits sink the economy or have the Fed's incessant money printing fostered a global boom? No matter which way one turns on those issues, one thing is clear: there's a magnificent absence of fear in the market right now.
The numbers speak for themselves:
Dow 13,115.54, +194.13 (1.50%)
NASDAQ 3,042.82, +54.42 (1.82%)
S&P 500 1,390.78, +21.21 (1.55%)
NYSE Composite 8,064.04, +114.47 (1.44%)
NASDAQ Volume 1,554,113,625
NYSE Volume 3,429,126,750
Combined NYSE & NASDAQ Advance - Decline: 4340-1306
Combined NYSE & NASDAQ New highs - New lows: 158-41
WTI crude oil: 104.20, +1.27
Gold: 1,651.10, +1.40
Silver: 31.68, +0.01
Although volume was light, that's become the new normal, so unless today's monster move was nothing more than bidding up prices in advance of options expiry, US businesses look to be in outstanding shape.
Earnings thus far for the first quarter have been better than expected for the most part, and, better yet, there haven't been any nasty developments or dissonant noise from Europe.
The questions surrounding recent moves in stocks are various and diverse. Are we extending the three-year-plus bull market or is this simply misplaced euphoria? Will fiscal policy of high deficits sink the economy or have the Fed's incessant money printing fostered a global boom? No matter which way one turns on those issues, one thing is clear: there's a magnificent absence of fear in the market right now.
The numbers speak for themselves:
Dow 13,115.54, +194.13 (1.50%)
NASDAQ 3,042.82, +54.42 (1.82%)
S&P 500 1,390.78, +21.21 (1.55%)
NYSE Composite 8,064.04, +114.47 (1.44%)
NASDAQ Volume 1,554,113,625
NYSE Volume 3,429,126,750
Combined NYSE & NASDAQ Advance - Decline: 4340-1306
Combined NYSE & NASDAQ New highs - New lows: 158-41
WTI crude oil: 104.20, +1.27
Gold: 1,651.10, +1.40
Silver: 31.68, +0.01
Monday, April 16, 2012
Apple Bifurcates Markets on Big Sell-off; Spain, Housing in Focus
Before getting to why the major indices were all over the map today, a couple of key economic data points:
The NAHB Housing Market Index fell for the first time in seven months, from 28 in March to 25 in April. A figure of 50 is considered "break even" wherein more builders are more confident. Obviously, this latest dip leasves new hoe builders nowhere close.
Regionally, the Northeast posted a four-point gain to 29 (its highest level since May of 2010), the West saw no change at 32, the South declined three poins to 24 and the Midwest was the weakest, posting an eight-point decline to 23.
With new home sales on tap for tomorrow, housing appears to be as weak as it ever has.
Retail sales for March posted an unexpected 0.8% gain on expectations of just a 0.3% rise, somewhat of a surprise considering high fuel costs and other issues facing consumers (no jobs, no homes, high debt, etc.).
On the downside, the Empire Manufacturing Index nose-dived from 20.21 in March to 6.56 in April. The collected wisdom of forecasters expected a decline - to 17.6. New orders and shipments were down, while the employment situation was mixed with more jobs, but for shorter durations.
Taken together, these data sets reveal a US economy that is crawling along and possibly sputtering to stall speed.
Investors in Apple (AAPL) took some long-overdue profits on Monday, sending the world's largest company by market cap down 25.10 points (4.15%), to close at 580.13, the worst decline for Apple in more than six months. Investors were buoyed by a 45% gain in the company stock since October, however.
The weight of Apple on the various indices was obvious, with the NASDAQ the most severely affected, the S&P less so. Meanwhile, the Dow registered a strong showing, with 24 of the 30 components sporting gains, led by Travelers (TRV), Proctor & Gamble (PG), Wal-Mart (WMT) and DuPont (DD).
Otherwise, it was a straightforward session, with much of the focus centered on Spain's 10-year note, which spiked back above 6% on the day and sent bond holders scrambling for the safety of the German Bund, which is nearing historic lows. The pressure on Spain's funding continues to fuel speculation that the country will need a Greek-style bailout soon.
Dow 12,921.41, +71.82 (0.56%)
NASDAQ 2,988.40, -22.93 (0.76%)
S&P 500 1,369.57, -0.69 (0.05%)
NYSE Composite 7,949.57, +18.47 (0.23%)
NASDAQ Volume 1,566,279,375
NYSE Volume 3,444,850,000
Combined NYSE & NASDAQ Advance - Decline: 3083-2500
Combined NYSE & NASDAQ New highs - New lows: 109-106
WTI crude oil: 102.93, +0.10
Gold: 1,649.70, -10.50
Silver: 31.37, -0.02
The NAHB Housing Market Index fell for the first time in seven months, from 28 in March to 25 in April. A figure of 50 is considered "break even" wherein more builders are more confident. Obviously, this latest dip leasves new hoe builders nowhere close.
Regionally, the Northeast posted a four-point gain to 29 (its highest level since May of 2010), the West saw no change at 32, the South declined three poins to 24 and the Midwest was the weakest, posting an eight-point decline to 23.
With new home sales on tap for tomorrow, housing appears to be as weak as it ever has.
Retail sales for March posted an unexpected 0.8% gain on expectations of just a 0.3% rise, somewhat of a surprise considering high fuel costs and other issues facing consumers (no jobs, no homes, high debt, etc.).
On the downside, the Empire Manufacturing Index nose-dived from 20.21 in March to 6.56 in April. The collected wisdom of forecasters expected a decline - to 17.6. New orders and shipments were down, while the employment situation was mixed with more jobs, but for shorter durations.
Taken together, these data sets reveal a US economy that is crawling along and possibly sputtering to stall speed.
Investors in Apple (AAPL) took some long-overdue profits on Monday, sending the world's largest company by market cap down 25.10 points (4.15%), to close at 580.13, the worst decline for Apple in more than six months. Investors were buoyed by a 45% gain in the company stock since October, however.
The weight of Apple on the various indices was obvious, with the NASDAQ the most severely affected, the S&P less so. Meanwhile, the Dow registered a strong showing, with 24 of the 30 components sporting gains, led by Travelers (TRV), Proctor & Gamble (PG), Wal-Mart (WMT) and DuPont (DD).
Otherwise, it was a straightforward session, with much of the focus centered on Spain's 10-year note, which spiked back above 6% on the day and sent bond holders scrambling for the safety of the German Bund, which is nearing historic lows. The pressure on Spain's funding continues to fuel speculation that the country will need a Greek-style bailout soon.
Dow 12,921.41, +71.82 (0.56%)
NASDAQ 2,988.40, -22.93 (0.76%)
S&P 500 1,369.57, -0.69 (0.05%)
NYSE Composite 7,949.57, +18.47 (0.23%)
NASDAQ Volume 1,566,279,375
NYSE Volume 3,444,850,000
Combined NYSE & NASDAQ Advance - Decline: 3083-2500
Combined NYSE & NASDAQ New highs - New lows: 109-106
WTI crude oil: 102.93, +0.10
Gold: 1,649.70, -10.50
Silver: 31.37, -0.02
Saturday, April 14, 2012
Saturday Morning Financial Comedy
Three short takes to relieve the stress of fiat-induced financial instability:
Tim Hawkins:
Clarke and Dawe:
South Park:
Tim Hawkins:
Clarke and Dawe:
South Park:
Margaritaville
Get More: SOUTH
PARKmore...
Friday, April 13, 2012
China's Slowing GDP a Symptom of Faltering Global Economy
Yesterday's rumor that China would report first quarter GDP of upwards of 9% growth - which fueled the ramp-up in stocks on Thursday - turned into today's reality that China's economy is slowing, and quickly.
When the news that China's economy grew less than expected - by 8.1%, the slowest rate of growth in the world's most populous country in nearly three years - traders in Europe and the US could not sell shares of selected equities quickly enough. By the time US markets opened, futures had cratered to their lowest levels of the morning and the selling continued throughout the lackluster session.
By he close, Thursday's gains were all but eviscerated, leaving investors to wonder what comes next in terms of the global economic condition.
Also, prior to the open, two major banks, JP Morgan Chase (JPM) and Wells-Fargo (WFC) announced first quarter earnings. Both beat estimates, but the stocks sold off on the reports, many analysts citing bookkeeping chicanery for the better-than-expected returns.
By the end of the day, JPM dropped 3.64%, while WFC lost 3.47%. Both stocks are near 52-week highs and are currently looking like serious short-sell candidates.
The Chinese data should not have come as a surprise. Since most of China's recent growth has been tied to exports - mainly to the US and Europe - slack demand has crimped output and China's nascent middle class is not yet robost enough to fill in the growth gap. Concerns over the debt condition of the Eurozone have not abated, and, in fact, may be exacerbated as Spain's situation worsens.
Sooner or later, principals are going to have to come to terms with the global condition of faltering sovereign nations, an excessive overhang of debt and limited solutions from fiscal and monetary authorities. The search for yield has many investors scrambling again into dividend-paying stocks or the marginal returns of US treasuries, which rallied once more, the ten-year dipping to 1.99% at the close of trading.
In such an environment, there is no safe harbor except for hard assets, though even oil, gold and silver were pounded lower on the news.
The major averages finished the week with losses of around two percent. The idea that stocks sporting solid gains for the first quarter have been selling off nevertheless, portends more downside for equity investors.
Deflation is a cruel environment, for which most in the financial arena are ill-prepared. The global economy is close to stall speed, which, for most ordinary people, is bliss, though the highly-leveraged worldwide financial system is surely strained at present.
Dow 12,849.67, -136.91 (1.05%)
NASDAQ 3,011.33, -44.22 (1.45%)
S&P 500 1,370.27, -17.30 (1.25%)
NYSE Composite 7,937.65, -102.31 (1.27%)
NASDAQ Volume 1,437,334,625
NYSE Volume 3,433,928,000
Combined NYSE & NASDAQ Advance - Decline: 1332-4234
Combined NYSE & NASDAQ New highs - New lows: 95-69
WTI crude oil: 102.83, -0.81
Gold: 1,660.20, -20.40
Silver: 31.39, -1.14
When the news that China's economy grew less than expected - by 8.1%, the slowest rate of growth in the world's most populous country in nearly three years - traders in Europe and the US could not sell shares of selected equities quickly enough. By the time US markets opened, futures had cratered to their lowest levels of the morning and the selling continued throughout the lackluster session.
By he close, Thursday's gains were all but eviscerated, leaving investors to wonder what comes next in terms of the global economic condition.
Also, prior to the open, two major banks, JP Morgan Chase (JPM) and Wells-Fargo (WFC) announced first quarter earnings. Both beat estimates, but the stocks sold off on the reports, many analysts citing bookkeeping chicanery for the better-than-expected returns.
By the end of the day, JPM dropped 3.64%, while WFC lost 3.47%. Both stocks are near 52-week highs and are currently looking like serious short-sell candidates.
The Chinese data should not have come as a surprise. Since most of China's recent growth has been tied to exports - mainly to the US and Europe - slack demand has crimped output and China's nascent middle class is not yet robost enough to fill in the growth gap. Concerns over the debt condition of the Eurozone have not abated, and, in fact, may be exacerbated as Spain's situation worsens.
Sooner or later, principals are going to have to come to terms with the global condition of faltering sovereign nations, an excessive overhang of debt and limited solutions from fiscal and monetary authorities. The search for yield has many investors scrambling again into dividend-paying stocks or the marginal returns of US treasuries, which rallied once more, the ten-year dipping to 1.99% at the close of trading.
In such an environment, there is no safe harbor except for hard assets, though even oil, gold and silver were pounded lower on the news.
The major averages finished the week with losses of around two percent. The idea that stocks sporting solid gains for the first quarter have been selling off nevertheless, portends more downside for equity investors.
Deflation is a cruel environment, for which most in the financial arena are ill-prepared. The global economy is close to stall speed, which, for most ordinary people, is bliss, though the highly-leveraged worldwide financial system is surely strained at present.
Dow 12,849.67, -136.91 (1.05%)
NASDAQ 3,011.33, -44.22 (1.45%)
S&P 500 1,370.27, -17.30 (1.25%)
NYSE Composite 7,937.65, -102.31 (1.27%)
NASDAQ Volume 1,437,334,625
NYSE Volume 3,433,928,000
Combined NYSE & NASDAQ Advance - Decline: 1332-4234
Combined NYSE & NASDAQ New highs - New lows: 95-69
WTI crude oil: 102.83, -0.81
Gold: 1,660.20, -20.40
Silver: 31.39, -1.14
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