Just after noon, stocks did an about-face and headed into negative territory, with losses accelerating into the close.
There was no real catalyst for the event, except for the possible realization that stocks have been trading at nose-bleed levels for months, the entire global financial condition is shaky at best and a complete joke of fiat money and debt piled on top of debt which will never be repaid.
There's a reason individual investors have fled from the stok market in droves over the past few years. In fact, there are multiple reasons, starting with the crash of 2008, which engendered problems that still have not been resolved. There's the flash crash, HFTs front-running every market order, other insider unscrupulous trading activity, the fact that no financial executive has even been indicted for crimes and probably never will be.
It is the same song and dance sen here nearly daily over the past five years and it's gotten to the point at which it is almost not worth the time to publish. There's a 101-point loss on the Dow today. There will be a 150-point gain tomorrow.
None of it makes any sense until one realizes that the game is rigged and completely out of control. The scrounging and skimming of other people's money is not going to end until regular people stand up and take action. Not demand action from their elected officials, because they're part of the problem, but take matters into one's own hands, like they have in Iceland, soon to come in Greece and shortly thereafter in Spain and Italy.
The US will get around to it last of all, if ever, because the living is good here in the states, no matter how bad the economy gets. There's always another way. The stock market is a road to nowhere for you, your money and your life.
Trading in the current climate is extremely risky and likely to end in disaster for anyone, even those with intimate knowledge of the depth of the crisis, the inner despair of Wall Street and the moaning from Main Street. Better to buy land, gold, silver, live off land you own (or, considering the state of real estate taxes, rent from the government) and make your own way as best as possible.
Dow 13,457.55, -101.37 (0.75%)
Nasdaq 3,117.73, -43.05 (1.36%)
S&P 500 1,441.59, -15.30 (1.05%)
NYSE Composite 8,274.77 -81.79(0.98%)
NYSE Volume 3,677,164,500
Nasdaq Volume 1,979,931,000
Combined NYSE & NASDAQ Advance - Decline: 1507-4082
Combined NYSE & NASDAQ New highs - New lows: 326-35
WTI crude oil: 91.37, -0.56
Gold: 1,766.40, +1.80
Silver: 33.95, -0.04
Tuesday, September 25, 2012
Monday, September 24, 2012
Stocks Fall for 16th Monday in Last 17; Riots Shutter Foxconn Plant
Seriously, folks, this is getting old.
Major US averages fell for the 16th time in the last 17 Mondays.
This is the new regime. Stocks always go down on Mondays and up on Fridays. They trade in extremely narrow ranges with little to no volatility. Anybody making open orders is immediately raped by HFTs and only insiders win. There is no volume (actually today's volume on the NYSE was in the range from pathetic to morose).
There was actually some positive news on the day. According to a Sunday Times article, Goldman Sachs (GS) is planning to lay off as many as 100 partners in the immediate future. The firm denied the allegations, saying that the changes had been long-planned and many of the departures are due to retirements. No matter the case, it's always good to hear that some of the tentacles of the "giant squid" are being shorn off.
A huge riot of some 5000 workers forced the shutdown of a huge Foxconn facility in Taiyuan, China. The facility reportedly employs 79,000 workers and manufactures the Apple iPhone and other electronic devices for companies such as Dell and Hewlett-Packard.
The price of crude oil fell again on Monday, causing speculation that the Fed's new bond purchase program, otherwise known as QEternity, is not going to be effective in creating jobs or strengthening the sagging US and global economies.
Business as usual.
Dow 13,558.92, -20.55 (0.15%)
NASDAQ 3,160.78, -19.18 (0.60%)
S&P 500 1,456.89, -3.26 (0.22%)
NYSE Composite 8,356.56, -20.95 (0.25%)
NASDAQ Volume 1,706,535,750
NYSE Volume 2,992,098,250
Combined NYSE & NASDAQ Advance - Decline: 2337-3175
Combined NYSE & NASDAQ New highs - New lows: 307-27
WTI crude oil: 91.93, -0.96
Gold: 1,764.60, -13.40
Silver: 33.98, -0.65
Major US averages fell for the 16th time in the last 17 Mondays.
This is the new regime. Stocks always go down on Mondays and up on Fridays. They trade in extremely narrow ranges with little to no volatility. Anybody making open orders is immediately raped by HFTs and only insiders win. There is no volume (actually today's volume on the NYSE was in the range from pathetic to morose).
There was actually some positive news on the day. According to a Sunday Times article, Goldman Sachs (GS) is planning to lay off as many as 100 partners in the immediate future. The firm denied the allegations, saying that the changes had been long-planned and many of the departures are due to retirements. No matter the case, it's always good to hear that some of the tentacles of the "giant squid" are being shorn off.
A huge riot of some 5000 workers forced the shutdown of a huge Foxconn facility in Taiyuan, China. The facility reportedly employs 79,000 workers and manufactures the Apple iPhone and other electronic devices for companies such as Dell and Hewlett-Packard.
The price of crude oil fell again on Monday, causing speculation that the Fed's new bond purchase program, otherwise known as QEternity, is not going to be effective in creating jobs or strengthening the sagging US and global economies.
Business as usual.
Dow 13,558.92, -20.55 (0.15%)
NASDAQ 3,160.78, -19.18 (0.60%)
S&P 500 1,456.89, -3.26 (0.22%)
NYSE Composite 8,356.56, -20.95 (0.25%)
NASDAQ Volume 1,706,535,750
NYSE Volume 2,992,098,250
Combined NYSE & NASDAQ Advance - Decline: 2337-3175
Combined NYSE & NASDAQ New highs - New lows: 307-27
WTI crude oil: 91.93, -0.96
Gold: 1,764.60, -13.40
Silver: 33.98, -0.65
Thursday, September 20, 2012
Initial Claims, Leading Indicators Disappoint; Investors Don't Care
Initial unemployment claims and the Conference Board's Index of Leading Economic Indicators both showed disappointing results but investors (those few left) didn't seem to care.
The number of people looking for jobs fell 3,000 from last week, with 382,000 new filers. Leading indicators were down 0.1 percent in August after rising 0.5 percent in July and dropping 0.5 percent in June.
Stocks traded lower in the morning, but quickly rebounded to unchanged, where they remained range-bound the remainder of the session.
It was another low-volume fiasco, brought to you by bankers who can't balance their books and journalists who can scarcely string together two cogent sentences.
Markets, especially those in the US, are so woefully correlated to the macro trade that it would be funny if it weren't so pathetic. Since fall of 2008, trading has been conducted on rumor, innuendo and the latest efforts by the Federal Reserve to "revive" the economy, even though their efforts have been directed almost entirely at rescuing failed financial institutions.
The Fed has thrown more than $20 trillion at the problems which first surfaced with sub-prime lending, but have since infected institutions and sovereign governments globally. Their efforts have been largely futile, wasteful and unfriendly to savers, but there seems to be no other way to keep the world's economic mess going other than to make frequent use of easing, by sopping up debt nobody wants because it is either eminently non-collateralized, below par or not redeemable for anything approaching fair value.
Global markets continue to plod along, nations continue to spend beyond their means and Wall Street thinks it's wonderful.
Just play along.
Dow 13,596.93 18.97(0.14%)
NASDAQ 3,175.96 6.66 (0.21%)
S&P 500 1,460.26 0.79 (0.05%)
NYSE Compos... 8,373.06 27.43 (0.33%)
NASDAQ Volume 1,789,587,250
NYSE Volume 3,372,348,500
Combined NYSE & NASDAQ Advance - Decline: 2132-3369
Combined NYSE & NASDAQ New highs - New lows: 225-35
WTI crude oil: 91.87, -0.11
Gold: 1,770.20, -1.50
Silver: 34.68, -0.09
The number of people looking for jobs fell 3,000 from last week, with 382,000 new filers. Leading indicators were down 0.1 percent in August after rising 0.5 percent in July and dropping 0.5 percent in June.
Stocks traded lower in the morning, but quickly rebounded to unchanged, where they remained range-bound the remainder of the session.
It was another low-volume fiasco, brought to you by bankers who can't balance their books and journalists who can scarcely string together two cogent sentences.
Markets, especially those in the US, are so woefully correlated to the macro trade that it would be funny if it weren't so pathetic. Since fall of 2008, trading has been conducted on rumor, innuendo and the latest efforts by the Federal Reserve to "revive" the economy, even though their efforts have been directed almost entirely at rescuing failed financial institutions.
The Fed has thrown more than $20 trillion at the problems which first surfaced with sub-prime lending, but have since infected institutions and sovereign governments globally. Their efforts have been largely futile, wasteful and unfriendly to savers, but there seems to be no other way to keep the world's economic mess going other than to make frequent use of easing, by sopping up debt nobody wants because it is either eminently non-collateralized, below par or not redeemable for anything approaching fair value.
Global markets continue to plod along, nations continue to spend beyond their means and Wall Street thinks it's wonderful.
Just play along.
Dow 13,596.93 18.97(0.14%)
NASDAQ 3,175.96 6.66 (0.21%)
S&P 500 1,460.26 0.79 (0.05%)
NYSE Compos... 8,373.06 27.43 (0.33%)
NASDAQ Volume 1,789,587,250
NYSE Volume 3,372,348,500
Combined NYSE & NASDAQ Advance - Decline: 2132-3369
Combined NYSE & NASDAQ New highs - New lows: 225-35
WTI crude oil: 91.87, -0.11
Gold: 1,770.20, -1.50
Silver: 34.68, -0.09
Wednesday, September 19, 2012
BOJ Eases; Housing a Little Better; Oil Takes Another Hit
OK, it's getting a little stupid with the incessant chorus of monetization of government (and bank debt).
Today, the Bank of Japan (BOJ) joined in, announcing something along the lines of a couple quadrillion yen to be added to liquidity over the next six to eight months. That may not be correct, but the numbers were large, the editor is too tired from cutting down dead limbs (from actual trees), and the time period is rather irrelevant, since the BOJ has been doing this kind of thing for 20-odd years, with obvious effect: keeping the Japanese economy mired in a semi-permanent state alternating between inflation and depression.
Markets took the news in stride, as usual, bounced around a bit, eventually ending only slightly higher on low volume. That's the story for now, and, while it doesn't change much, some day it will. In the meantime, we're taking our own advice and buying land, seeds (tomatoes, tobacco, broccoli, etc.), silver and maybe some working firearms.
There was what might be called "encouraging" news on the housing front. Housing starts (officially, a shovel in the ground or a stake being placed on a lot by a surveyor) came in at 750K in August, but that was below forecast, though up from the July figure of 733K, which was revised downward from 746K, so, expect the August figures to be revised lower as well, for a net gain of, well, who knows?
Existing home sales for August came in at an annual run-rate of 4.82 million, up from an unrevised 4.47 million in July and well ahead of forecasts. That was the best of the news, because August building permits, viewed as an indicator of current demand, fell from 812K in July to 803K, putting something of a damper on the "animal spirits" which keep calling the bottom in the housing market month after month.
Is this the bottom? Maybe, though that depends on perspective and how far out you wish to project. Give housing another four years of ZIRP, massive MBS buying and monetization of the federal debt and see where we are then.
Even better news came from the oil commodity complex, where the price of crude took another massive hit. There's no telling where the selling is coming from, or why, though it certainly seems fishy given the closeness to the general election - just six short weeks away - and the inherently inflationary effect of Bernanke's QEternity, but, it's welcome relief for drivers in the US, at least.
Dow 13,577.96, +13.32(0.10%)
NASDAQ 3,182.62, +4.82(0.15%)
S&P 5001,461.05, +1.73 (0.12%)
NYSE Composite 8,400.31, +12.87 (0.15%)
NASDAQ Volume 1,826,526,125
NYSE Volume 3,409,506,250
Combined NYSE & NASDAQ Advance - Decline: 2914-2500
Combined NYSE & NASDAQ New highs - New lows: 315-28
WTI crude oil: 91.98, -3.31
Gold: 1,771.70, +0.50
Silver: 34.59, -0.13
Today, the Bank of Japan (BOJ) joined in, announcing something along the lines of a couple quadrillion yen to be added to liquidity over the next six to eight months. That may not be correct, but the numbers were large, the editor is too tired from cutting down dead limbs (from actual trees), and the time period is rather irrelevant, since the BOJ has been doing this kind of thing for 20-odd years, with obvious effect: keeping the Japanese economy mired in a semi-permanent state alternating between inflation and depression.
Markets took the news in stride, as usual, bounced around a bit, eventually ending only slightly higher on low volume. That's the story for now, and, while it doesn't change much, some day it will. In the meantime, we're taking our own advice and buying land, seeds (tomatoes, tobacco, broccoli, etc.), silver and maybe some working firearms.
There was what might be called "encouraging" news on the housing front. Housing starts (officially, a shovel in the ground or a stake being placed on a lot by a surveyor) came in at 750K in August, but that was below forecast, though up from the July figure of 733K, which was revised downward from 746K, so, expect the August figures to be revised lower as well, for a net gain of, well, who knows?
Existing home sales for August came in at an annual run-rate of 4.82 million, up from an unrevised 4.47 million in July and well ahead of forecasts. That was the best of the news, because August building permits, viewed as an indicator of current demand, fell from 812K in July to 803K, putting something of a damper on the "animal spirits" which keep calling the bottom in the housing market month after month.
Is this the bottom? Maybe, though that depends on perspective and how far out you wish to project. Give housing another four years of ZIRP, massive MBS buying and monetization of the federal debt and see where we are then.
Even better news came from the oil commodity complex, where the price of crude took another massive hit. There's no telling where the selling is coming from, or why, though it certainly seems fishy given the closeness to the general election - just six short weeks away - and the inherently inflationary effect of Bernanke's QEternity, but, it's welcome relief for drivers in the US, at least.
Dow 13,577.96, +13.32(0.10%)
NASDAQ 3,182.62, +4.82(0.15%)
S&P 5001,461.05, +1.73 (0.12%)
NYSE Composite 8,400.31, +12.87 (0.15%)
NASDAQ Volume 1,826,526,125
NYSE Volume 3,409,506,250
Combined NYSE & NASDAQ Advance - Decline: 2914-2500
Combined NYSE & NASDAQ New highs - New lows: 315-28
WTI crude oil: 91.98, -3.31
Gold: 1,771.70, +0.50
Silver: 34.59, -0.13
Tuesday, September 18, 2012
With Everything Priced In, Trading Remains Sluggish
Well, absolutely everything from QE3 to the ECB's bond-buying program to Midwest drought to the presidential election has been completely priced into stocks, so they have nowhere to go at present.
The NASDAQ traded in about an eight-point range, a fivepoint swing top to bottom as all the S&P could muster, while the Dow - the only index higher on the session - was range-bound by 64 points. Volume, not unexpectedly, was light and volatility was nowhere to be found.
This, of course, is the direct result of government intervention into what used to be free markets, central planning of the economy and socialization of losses by financial firms.
It goes without saying that it is tough to make money in such an environment. Stocks are poised either near all-time highs or, as in the case of the NASDAQ, multi-year highs. The level of complacency, knowing that the Fed can and will step in at any sign of weakness, is almost unbearably stupid.
Since Fed chairman Ben Bernanke called for $40 billion in monthly MBS purchases without placing a duration limit, the major averages have more or less flat-lined.
That's about the whole story for today. Nothing much happened.
There was one bit of good news: oil fell substantially for the second straight day. If the current move downward (oil prices usually drop after Labor Day) is sustained, within a month, drivers should begin to see lower prices at the pump.
Dow 13,564.64, -11.54(0.09%)
NASDAQ 3,177.80, -0.87 (0.03%)
S&P 500 1,459.32, -1.87 (0.13%)
NYSE Composite 8,387.52, -21.45 (0.26%)
NASDAQ Volume 1,672,492,500
NYSE Volume 3,350,519,000
Combined NYSE & NASDAQ Advance - Decline: 2560-2973
Combined NYSE & NASDAQ New highs - New lows: 191-20
WTI crude oil: 95.29, -1.33
Gold: 1,771.20, +0.60
Silver: 34.72, +0.35
The NASDAQ traded in about an eight-point range, a fivepoint swing top to bottom as all the S&P could muster, while the Dow - the only index higher on the session - was range-bound by 64 points. Volume, not unexpectedly, was light and volatility was nowhere to be found.
This, of course, is the direct result of government intervention into what used to be free markets, central planning of the economy and socialization of losses by financial firms.
It goes without saying that it is tough to make money in such an environment. Stocks are poised either near all-time highs or, as in the case of the NASDAQ, multi-year highs. The level of complacency, knowing that the Fed can and will step in at any sign of weakness, is almost unbearably stupid.
Since Fed chairman Ben Bernanke called for $40 billion in monthly MBS purchases without placing a duration limit, the major averages have more or less flat-lined.
That's about the whole story for today. Nothing much happened.
There was one bit of good news: oil fell substantially for the second straight day. If the current move downward (oil prices usually drop after Labor Day) is sustained, within a month, drivers should begin to see lower prices at the pump.
Dow 13,564.64, -11.54(0.09%)
NASDAQ 3,177.80, -0.87 (0.03%)
S&P 500 1,459.32, -1.87 (0.13%)
NYSE Composite 8,387.52, -21.45 (0.26%)
NASDAQ Volume 1,672,492,500
NYSE Volume 3,350,519,000
Combined NYSE & NASDAQ Advance - Decline: 2560-2973
Combined NYSE & NASDAQ New highs - New lows: 191-20
WTI crude oil: 95.29, -1.33
Gold: 1,771.20, +0.60
Silver: 34.72, +0.35
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