For nearly two weeks running, trading ranges on the major indices have been slim and volume exceptionally light, as Wall Street sees no reason to rush either in or out of positions late in the summer.
This kind of trading regime is of no particular value to anybody, even to insiders who depend on at least some shred of volatility to move stocks in one direction or the other.
There's no catalyst for stocks at the present time, a condition which could persist until the elections in November or whenever the Europeans decide to actually do something about their ongoing crisis.
On the other hand, this just could be the "new normal" for US markets, since the triumvirate of high frequency trading (HFT), insider trading and the utter lack of individual investors to trust in the markets, has rendered just about all investment decisions a moot point.
Zero interest rate policy (ZIRP) by the Fed and general fraud on the part of the nation's biggest banks - in collusion with the federal government - have many otherwise investor types on the sidelines in cash or other hard assets like gold, silver or real estate.
About the only thing showing any movement are commodities, and they're moving in a very dangerous direction, with corn prices escalating and oil jumping back up into nose-bleed territory. In a macro sense, high food and energy prices will derail any kind of recovery, even the one we haven't had for the past three years.
Stocks, however, continue to levitate at unreasonable levels, another reason why there isn't much in the way of buying activity, but the conundrum is why there hasn't been more selling, either for profit-taking (and there's been plenty of profit of late) or out of a sense that the bottom is going to fall out of the global economy any day now.
In either case, one would expect some kind of movement, and most likely not to the upside. Corporate profits in the second quarter were barely as good as lowered estimates, small business continues to struggle along, housing is not fixed and unemployment remains stubbornly high.
Perhaps the lesson to be taken from this summer respite is that one can only kick a can so far down a given road until either the road ends or somebody picks up the can for a nickel deposit return.
Something will change to get Wall Street out of its rut, but timing such an event could prove costly and dangerous.
Dow 13,164.78, -7.36 (0.06%)
NASDAQ 3,030.93, +13.95 (0.46%)
S&P 500 1,405.53, +1.60 (0.11%)
NYSE Composite 8,030.08, +10.55 (0.13%)
NASDAQ Volume 1,498,334.250
NYSE Volume 2,527,355.50
Combined NYSE & NASDAQ Advance - Decline: 3628-1915
Combined NYSE & NASDAQ New highs - New lows: 152-57
WTI crude oil: 94.33, +0.90
Gold: 1,606.60, +4.20
Silver: 27.81, +0.05
Wednesday, August 15, 2012
Tuesday, August 14, 2012
Wall Street Remains a Dead Zone; Habits of the Rich
It was another day of lackluster trading on US exchanges, with stocks spending most of the session in positive territory before sliding in the afternoon back to near opening levels.
This is the seventh straight session in which stocks have more or less meandered across and along the unchanged mark on ridiculously low volume, with no catalyst for change on the horizon.
Even economic data was dull or given the short shrift, as retail sales for July posted their best showing since February, a gain of 0.8%, though that was counterbalanced by a revision of June's figures from -0.5 to -0.7.
PPI showed some nascent signs of inflation, gaining 0.3% for July, with the core coming in at a somewhat surprising 0.4%, sparking fears that inflation has emerged from the core of food and energy, though the numbers lack any definitive pattern.
That was about it, as the masters of the universe were more likely pondering the upcoming presidential election or the bottom of a cocktail glass out at the Hamptons.
Since Wall Street seems preoccupied or disinterested in the capital markets for the time being, let's take a look at the habits of the rich, courtesy of author Tom Corley's recent work, Rich Habits, from whence came the following quiz:
The author posits that if you perform six or more of the above on a regular basis, you have the kernel of success flowing through your veins.
Of course, the quiz is somewhat simplistic, though it maintains that an ordered life, with goals and aspirations, plus dollops of common sense, may eventually lead to a life of leisure and contentment.
Other virtues that may lead one to find happiness and success include perseverance, decisiveness, objectivity, passion, organization and a positive direction. Starting off a professional career with a fat salary and some quality guidance certainly helps, though those final accoutrements are not always afforded to the vast majority.
Dow 13,172.14, +2.71 (0.02%)
NASDAQ 3,016.98, -5.54 (0.18%)
S&P 500 1,403.93, -0.18 (0.01%)
NYSE Composite 8,019.53, +0.90 (0.01%)
NASDAQ Volume 1,569,593,500
NYSE Volume 2,918,056,000
Combined NYSE & NASDAQ Advance - Decline: 2453-3094
Combined NYSE & NASDAQ New highs - New lows: 178-53
WTI crude oil: 93.43, +0.70
Gold: 1,602.40, -10.20
Silver: 27.76, UNCH
This is the seventh straight session in which stocks have more or less meandered across and along the unchanged mark on ridiculously low volume, with no catalyst for change on the horizon.
Even economic data was dull or given the short shrift, as retail sales for July posted their best showing since February, a gain of 0.8%, though that was counterbalanced by a revision of June's figures from -0.5 to -0.7.
PPI showed some nascent signs of inflation, gaining 0.3% for July, with the core coming in at a somewhat surprising 0.4%, sparking fears that inflation has emerged from the core of food and energy, though the numbers lack any definitive pattern.
That was about it, as the masters of the universe were more likely pondering the upcoming presidential election or the bottom of a cocktail glass out at the Hamptons.
Since Wall Street seems preoccupied or disinterested in the capital markets for the time being, let's take a look at the habits of the rich, courtesy of author Tom Corley's recent work, Rich Habits, from whence came the following quiz:
1 Do you read at least one career-related educational book a month?
2 Do you engage in aerobic exercise of 20-40 minutes a day for at least 4 days a
week?
3 Do you eat 300 calories of less in junk food per day?
4 Do you set monthly, annual and long-term goals?
5 Do you spend 20-30 minutes each work day reading career-related magazines,
trade publications, newsletters etc.?
6 Do you limit T.V. and Social Media to one hour per day?
7 Do you regularly save 10% or more of your gross income?
8 Do you call everyone you know to wish them a happy birthday? This includes
family, friends and business contacts.
9 Do you create daily "To Do" lists and complete at least 70% or more of your
daily tasks?
10 Do you call or send thank you cards to everyone who has done something that
helped you in your career or life?
The author posits that if you perform six or more of the above on a regular basis, you have the kernel of success flowing through your veins.
Of course, the quiz is somewhat simplistic, though it maintains that an ordered life, with goals and aspirations, plus dollops of common sense, may eventually lead to a life of leisure and contentment.
Other virtues that may lead one to find happiness and success include perseverance, decisiveness, objectivity, passion, organization and a positive direction. Starting off a professional career with a fat salary and some quality guidance certainly helps, though those final accoutrements are not always afforded to the vast majority.
Dow 13,172.14, +2.71 (0.02%)
NASDAQ 3,016.98, -5.54 (0.18%)
S&P 500 1,403.93, -0.18 (0.01%)
NYSE Composite 8,019.53, +0.90 (0.01%)
NASDAQ Volume 1,569,593,500
NYSE Volume 2,918,056,000
Combined NYSE & NASDAQ Advance - Decline: 2453-3094
Combined NYSE & NASDAQ New highs - New lows: 178-53
WTI crude oil: 93.43, +0.70
Gold: 1,602.40, -10.20
Silver: 27.76, UNCH
Monday, August 13, 2012
Dead Market Syndrome Continues; Consent by the Governed Should be Withdrawn
It's almost impossible to write any compelling commentary on the market as long as the PPT continues to meddle and volumes remain so horrifyingly low.
There is a serious problem developing if the world's most active market - the US stock exchanges - continue the daily pattern of losses in the morning followed by sharp reversal and firming up throughout the remainder of the session.
Combined trading volumes for the NYSE and NASDAQ today reached the nadir for the year and could possibly represent the lowest trading volume since the 2008 crash.
This is worse than a liquidity issue; it is a confidence issue. Individual investors have fled the marketplace, seeking safer havens in raw land, gold, silver and other hard assets.
Small, passive investors, such as those stuck in pension plans, IRAs or 401k plans, have no options other than to cash out and take the penalty, but the PPT has made that approach seem ludicrous by pumping up equities on a regular basis.
Were stocks free to trade without government intervention, the p/e multiples would be in the range of eight to ten, sending indices plummeting, reflecting the true weakness in the markets, but that's not going to happen until sometime close to the election, which is now a mere 13 weeks away.
The candidates are posturing and the rhetoric will get louder and more divisive as the conventions approach, though it's all for show, meaning nothing, as compaign promises are routinely broken. Whichever candidates are chosen (or appropriated by the black boxes that purportedly count every vote), little will change for the good of the people. It's amusing that the media and presidential candidates want the general public to believe this is the most important election of their lives, just as it was in 2000, 2004 and 2008.
All right, this election is important. It's important to understand that the elections are absolutely meaningless because the civil rights of American citizens have been slowly but surely stripped away, the constitution shredded, and the two-party system guarantees mediocre politicians and worse outcomes. Not voting, i.e., withdrawing consent, is the only way Americans are ever going to regain the freedoms lost over the past 12 years, but, as is usual in America, the people have been asleep for so long, they merely follow along, in a zombie trance, trusting in a system built on lies, fraud and special interests.
A day of reckoning is soon to come. Best be prepared.
Dow 13,169.43, -38.52 (0.29%)
NASDAQ 3,022.52, +1.66 (0.05%)
S&P 500 1,404.11, -1.76 (0.13%)
NYSE Composite 8,012.29, -32.47 (0.40%)
NASDAQ Volume 1,321,221,625
NYSE Volume 2,340,765,750
Combined NYSE & NASDAQ Advance - Decline: 2214-3277
Combined NYSE & NASDAQ New highs - New lows: 116-55
WTI crude oil: 92.73, -0.14
Gold: 1,612.60, -10.20
Silver: 27.77, -0.30
There is a serious problem developing if the world's most active market - the US stock exchanges - continue the daily pattern of losses in the morning followed by sharp reversal and firming up throughout the remainder of the session.
Combined trading volumes for the NYSE and NASDAQ today reached the nadir for the year and could possibly represent the lowest trading volume since the 2008 crash.
This is worse than a liquidity issue; it is a confidence issue. Individual investors have fled the marketplace, seeking safer havens in raw land, gold, silver and other hard assets.
Small, passive investors, such as those stuck in pension plans, IRAs or 401k plans, have no options other than to cash out and take the penalty, but the PPT has made that approach seem ludicrous by pumping up equities on a regular basis.
Were stocks free to trade without government intervention, the p/e multiples would be in the range of eight to ten, sending indices plummeting, reflecting the true weakness in the markets, but that's not going to happen until sometime close to the election, which is now a mere 13 weeks away.
The candidates are posturing and the rhetoric will get louder and more divisive as the conventions approach, though it's all for show, meaning nothing, as compaign promises are routinely broken. Whichever candidates are chosen (or appropriated by the black boxes that purportedly count every vote), little will change for the good of the people. It's amusing that the media and presidential candidates want the general public to believe this is the most important election of their lives, just as it was in 2000, 2004 and 2008.
All right, this election is important. It's important to understand that the elections are absolutely meaningless because the civil rights of American citizens have been slowly but surely stripped away, the constitution shredded, and the two-party system guarantees mediocre politicians and worse outcomes. Not voting, i.e., withdrawing consent, is the only way Americans are ever going to regain the freedoms lost over the past 12 years, but, as is usual in America, the people have been asleep for so long, they merely follow along, in a zombie trance, trusting in a system built on lies, fraud and special interests.
A day of reckoning is soon to come. Best be prepared.
Dow 13,169.43, -38.52 (0.29%)
NASDAQ 3,022.52, +1.66 (0.05%)
S&P 500 1,404.11, -1.76 (0.13%)
NYSE Composite 8,012.29, -32.47 (0.40%)
NASDAQ Volume 1,321,221,625
NYSE Volume 2,340,765,750
Combined NYSE & NASDAQ Advance - Decline: 2214-3277
Combined NYSE & NASDAQ New highs - New lows: 116-55
WTI crude oil: 92.73, -0.14
Gold: 1,612.60, -10.20
Silver: 27.77, -0.30
Friday, August 10, 2012
Our Dysfunctional Economy Won't Be Repaired Until Bankers Go to Jail
The popular phrase, "it's better to light a candle than curse the darkness," was once spoken in public by Peter Benenson, the English lawyer and founder of Amnesty International, at a Human Rights Day ceremony on 10th December 1961. There are disputes over the origin of this nugget of wisdom, some attributing it as an "ancient Chinese proverb."
Whatever the case, Mr. Benenson, and the American Christopher Society, which adopted the phrase as its motto, certainly had meritorious intentions in keeping to the spirit of the words.
When it comes to our current economic climate and the out-of-control, corrupt worldwide banking and political liaison, the cabal of bankers and politicians are the darkness, and, as much as one tries to be at all times civil, they need to be cursed.
Market manipulations aside, this week could well have been the utter, disgusting end of years of rigging, price, fixing, fraud and associated crimes, none of which having been prosecuted.
It's been mentioned in this space before that the end of manipulation is eventual failure or stagnation and this week was a prime example. Sure, it's summer and the height of vacation season, but the entire range of trade over the past five days on the Dow Jones Industrials was 115 points. On the NASDAQ, 45 points, while the S&P 500 vacillated between a low of 1391 and a high of 1406, which, incidentally, was close to where it closed on Friday. The S&P finished higher every day this week, though the biggest gain was a whopping seven points.
By the way, all of todays gains were made in the final 40 minutes of trading and the day's volume was embarrassing. Free and fair markets - that's what we used to have in the United States. What we have now is a dangerous, insider-controlled contrivance.
Were there a way to "light a candle" amidst the fraud that has enveloped our financial, political and media systems, it would probably be blown out in an instant. We the people are seemingly bred to watch, listen, obey and not ask questions. The banking elite, however, can do no wrong, as evidenced by a number of stories which emerged from the flotsam of the week that wasn't.
On Tuesday, the CFTC shut down a four-year-long investigation into silver market manipulation, focusing on JP Morgan and HSBC, saying there was insufficient evidence to bring any charges.
Thursday, the US Department of Justice decided not to pursue criminal charges against Goldman Sachs or any of its employees on mortgage securities fraud, concluding "that the burden of proof to bring a criminal case could not be met based on the law and facts as they exist at this time.” The investigation, which took over a year, was prompted by Goldman Sach's CEO Lloyd Blankfein testifying to a congressional panel that the firm actually took the opposite sides of trades that they sold to their clients. But, that's not sufficient for the bought-and-paid-for invisible man, Eric Holder, to bring a case forward. (Here's an idea: to help balance the budget, why not just shut down the DoJ? They apparently aren't interested in prosecuting anybody connected with the financial industry for anything. Big savings there.)
Thursday night, CBS ran, as the second story on their nightly national "news" broadcast, that the housing market was finally recovering (this probably was the sixth or seventh time over the past two years the shills at CBS had run such a story). Why then does Gary Shilling suggest that existing home prices could fall another 20%?
Flood of Foreclosures Could Cause Home Prices to Drop 20%: Gary Shilling
So, make up your own mind. Is the banking system, government oversight and the media working for you and your fellow citizens? Or are there two levels of justice in the USA (and probably everywhere else): one for rich bankers and one for the rest of us? Can we really trust our leaders to do the right things for the people? Or are we caught up in a fascist corporotocracy that feeds upon individuals for the benefit of the rich and powerful?
Go ahead and curse the darkness, because it needs to be cursed. Then light a candle. Take care of your family and friends and do something for yourself, like buying some raw land, growing some of your own vegetables, or investing in physical gold or silver.
To close out the week, or, if you're in need of additional reinforced rancor over the weekend, check out the latest Keiser Report, with Max Keiser and Stacy Herbert, below:
Dow 13,207.95, +42.76 (0.32%)
NASDAQ 3,020.86, +2.22 (0.07%)
S&P 500 1,405.86, +3.06 (0.22%)
NYSE Composite 8,042.59, +17.58 (0.22%)
NASDAQ Volume 1,568,909,750
NYSE Volume 2,586,105,500
Combined NYSE & NASDAQ Advance - Decline: 2753-2759
Combined NYSE & NASDAQ New highs - New lows: 153-43
WTI crude oil: 92.87, -0.49
Gold: 1,622.80, +2.60
Silver: 28.06, -0.04
Whatever the case, Mr. Benenson, and the American Christopher Society, which adopted the phrase as its motto, certainly had meritorious intentions in keeping to the spirit of the words.
When it comes to our current economic climate and the out-of-control, corrupt worldwide banking and political liaison, the cabal of bankers and politicians are the darkness, and, as much as one tries to be at all times civil, they need to be cursed.
Market manipulations aside, this week could well have been the utter, disgusting end of years of rigging, price, fixing, fraud and associated crimes, none of which having been prosecuted.
It's been mentioned in this space before that the end of manipulation is eventual failure or stagnation and this week was a prime example. Sure, it's summer and the height of vacation season, but the entire range of trade over the past five days on the Dow Jones Industrials was 115 points. On the NASDAQ, 45 points, while the S&P 500 vacillated between a low of 1391 and a high of 1406, which, incidentally, was close to where it closed on Friday. The S&P finished higher every day this week, though the biggest gain was a whopping seven points.
By the way, all of todays gains were made in the final 40 minutes of trading and the day's volume was embarrassing. Free and fair markets - that's what we used to have in the United States. What we have now is a dangerous, insider-controlled contrivance.
Were there a way to "light a candle" amidst the fraud that has enveloped our financial, political and media systems, it would probably be blown out in an instant. We the people are seemingly bred to watch, listen, obey and not ask questions. The banking elite, however, can do no wrong, as evidenced by a number of stories which emerged from the flotsam of the week that wasn't.
On Tuesday, the CFTC shut down a four-year-long investigation into silver market manipulation, focusing on JP Morgan and HSBC, saying there was insufficient evidence to bring any charges.
Thursday, the US Department of Justice decided not to pursue criminal charges against Goldman Sachs or any of its employees on mortgage securities fraud, concluding "that the burden of proof to bring a criminal case could not be met based on the law and facts as they exist at this time.” The investigation, which took over a year, was prompted by Goldman Sach's CEO Lloyd Blankfein testifying to a congressional panel that the firm actually took the opposite sides of trades that they sold to their clients. But, that's not sufficient for the bought-and-paid-for invisible man, Eric Holder, to bring a case forward. (Here's an idea: to help balance the budget, why not just shut down the DoJ? They apparently aren't interested in prosecuting anybody connected with the financial industry for anything. Big savings there.)
Thursday night, CBS ran, as the second story on their nightly national "news" broadcast, that the housing market was finally recovering (this probably was the sixth or seventh time over the past two years the shills at CBS had run such a story). Why then does Gary Shilling suggest that existing home prices could fall another 20%?
Flood of Foreclosures Could Cause Home Prices to Drop 20%: Gary Shilling
So, make up your own mind. Is the banking system, government oversight and the media working for you and your fellow citizens? Or are there two levels of justice in the USA (and probably everywhere else): one for rich bankers and one for the rest of us? Can we really trust our leaders to do the right things for the people? Or are we caught up in a fascist corporotocracy that feeds upon individuals for the benefit of the rich and powerful?
Go ahead and curse the darkness, because it needs to be cursed. Then light a candle. Take care of your family and friends and do something for yourself, like buying some raw land, growing some of your own vegetables, or investing in physical gold or silver.
To close out the week, or, if you're in need of additional reinforced rancor over the weekend, check out the latest Keiser Report, with Max Keiser and Stacy Herbert, below:
Dow 13,207.95, +42.76 (0.32%)
NASDAQ 3,020.86, +2.22 (0.07%)
S&P 500 1,405.86, +3.06 (0.22%)
NYSE Composite 8,042.59, +17.58 (0.22%)
NASDAQ Volume 1,568,909,750
NYSE Volume 2,586,105,500
Combined NYSE & NASDAQ Advance - Decline: 2753-2759
Combined NYSE & NASDAQ New highs - New lows: 153-43
WTI crude oil: 92.87, -0.49
Gold: 1,622.80, +2.60
Silver: 28.06, -0.04
Thursday, August 9, 2012
The Result of Manipulated Markets
Call it what you like: rigged, played, insider trading, manipulated, contrived; when markets are not allowed to be free from intervention by governments or massive money managers, you get what amounts to basically nothing, stagnation, atrophy.
Read it and wonder. No explanation is sufficient nor necessary.
Dow 13,165.19, -10.45 (0.08%)
NASDAQ 3,018.64, +7.39 (0.25%)
S&P 500 1,402.80, +0.58 (0.04%)
NYSE Composite 8,025.00, +6.77 (0.08%)
NASDAQ Volume 1,677,765,625
NYSE Volume 3,089,631. 750
Combined NYSE & NASDAQ Advance - Decline: 3077-2454
Combined NYSE & NASDAQ New highs - New lows: 204-41
WTI crude oil: 93.36, +0.01
Gold: 1,620.20, +4.20
Silver: 28.10, -0.02
Read it and wonder. No explanation is sufficient nor necessary.
Dow 13,165.19, -10.45 (0.08%)
NASDAQ 3,018.64, +7.39 (0.25%)
S&P 500 1,402.80, +0.58 (0.04%)
NYSE Composite 8,025.00, +6.77 (0.08%)
NASDAQ Volume 1,677,765,625
NYSE Volume 3,089,631. 750
Combined NYSE & NASDAQ Advance - Decline: 3077-2454
Combined NYSE & NASDAQ New highs - New lows: 204-41
WTI crude oil: 93.36, +0.01
Gold: 1,620.20, +4.20
Silver: 28.10, -0.02
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