More new records.
Happy faces all around.
Dow 15,056.20, +87.31 (0.58%)
NASDAQ 3,396.63, +3.66 (0.11%)
S&P 500 1,625.96, +8.46 (0.52%)
NYSE Composite 9,409.02, +60.12 (0.64%)
NASDAQ Volume 1,674,661,000
NYSE Volume 3,558,739,000
Combined NYSE & NASDAQ Advance - Decline: 4416-2064
Combined NYSE & NASDAQ New highs - New lows: 670-25
WTI crude oil: 95.62, -0.54
Gold: 1,448.80, -19.20
Silver: 23.81, -0.149
Tuesday, May 7, 2013
Monday, May 6, 2013
Dead Markets for a Dying Economy
The entire range on the Dow Jones Industrials today was a bit over 47 points. For the S&P 500, 5.56 points.
It's a truly sad day when the major indices move less than four-tenths of a percent, top to bottom. It means that the now-soulless, machine-run market has gone nearly bidless as well. In the absence of any kind of data flow, the computers have nothing to do, so this is what we get... pretty much nothing.
So much for follow-on after Friday's euphoric jobs data rally, which was actually nothing more than numbers being pulled from a magician's hat.
This stock market runs on rumor and money printing and nothing more. When the Dow, S&P and the NASDAQ are 60% lower than where they are today, it might present an attractive investing opportunity. For now, it's just a mirage. Nothing about this market - from corporate earnings to government-supplied data - is real.
The fact of the matter is that America is a crippled marketplace, a stumbling, old, broken economy, but nobody is willing to admit it, at least nobody on Wall Street or in Washington.
Today was the three-year anniversary of the "flash crash" which is credited for keeping so many individual investors away from stocks. Perhaps it is a fitting reminder of that day to see no volume and little price movement. Just what the doctor ordered.
So, now you see that the market is all fixed. No big moves up or down in split seconds. Come on in a buy some stocks. They're at all time highs!
What a total farce this has become. Worthy of a Neil Simon work-up.
Dow 14,968.89, -5.07 (0.03%)
NASDAQ 3,392.97, +14.34 (0.42%)
S&P 500 1,617.50, +3.08 (0.19%)
NYSE Composite 9,345.17, +4.70 (0.05%)
NASDAQ Volume 1,452,282,625
NYSE Volume 3,214,814,500
Combined NYSE & NASDAQ Advance - Decline: 3808-2622
Combined NYSE & NASDAQ New highs - New lows: 476-25
WTI crude oil: 96.16, +0.55
Gold: 1,468.00, +3.80
Silver: 23.96, +0.059
It's a truly sad day when the major indices move less than four-tenths of a percent, top to bottom. It means that the now-soulless, machine-run market has gone nearly bidless as well. In the absence of any kind of data flow, the computers have nothing to do, so this is what we get... pretty much nothing.
So much for follow-on after Friday's euphoric jobs data rally, which was actually nothing more than numbers being pulled from a magician's hat.
This stock market runs on rumor and money printing and nothing more. When the Dow, S&P and the NASDAQ are 60% lower than where they are today, it might present an attractive investing opportunity. For now, it's just a mirage. Nothing about this market - from corporate earnings to government-supplied data - is real.
The fact of the matter is that America is a crippled marketplace, a stumbling, old, broken economy, but nobody is willing to admit it, at least nobody on Wall Street or in Washington.
Today was the three-year anniversary of the "flash crash" which is credited for keeping so many individual investors away from stocks. Perhaps it is a fitting reminder of that day to see no volume and little price movement. Just what the doctor ordered.
So, now you see that the market is all fixed. No big moves up or down in split seconds. Come on in a buy some stocks. They're at all time highs!
What a total farce this has become. Worthy of a Neil Simon work-up.
Dow 14,968.89, -5.07 (0.03%)
NASDAQ 3,392.97, +14.34 (0.42%)
S&P 500 1,617.50, +3.08 (0.19%)
NYSE Composite 9,345.17, +4.70 (0.05%)
NASDAQ Volume 1,452,282,625
NYSE Volume 3,214,814,500
Combined NYSE & NASDAQ Advance - Decline: 3808-2622
Combined NYSE & NASDAQ New highs - New lows: 476-25
WTI crude oil: 96.16, +0.55
Gold: 1,468.00, +3.80
Silver: 23.96, +0.059
Friday, May 3, 2013
Non-Farm Payrolls for April Send Markets Screaming Higher
When the BLS posted the non-farm payroll data for April at 165,000 - well beyond even the most optimistic guesses (average 145,000) - it was just what the Wall Street syndicate needed to push the S&P over 1600 - a new all-time high - and send everyone home for the weekend a winner.
Never mind that the numbers are mostly a fabrication of modeling, birth-death adjustments, include part-time employees and that the average workweek fell by 0.1%, effectively eliminating most of the gain, or that the March figure was 50% off and raised to a new level, it worked wonders for the market, soullessly searching for any kind of news, good, bad or inconsequential.
Whether one believes these numbers are meaningful, truthful or indicative of anything, doesn't really matter. It's simply more fodder for the one-percenters with which to feed their insatiable greed.
Welcome to the new world dis-order. Enjoy the Kentucky Derby and the weekend. At least we believe the horse races to be honest gambling venues.
Dow 14,973.96, +142.38 (0.96%)
NASDAQ 3,378.63, +38.01 (1.14%)
S&P 500 1,614.42, +16.83 (1.05%)
NYSE Composite 9,340.37, +93.64 (1.01%)
NASDAQ Volume 1,671,711,875
NYSE Volume 3,914,186,250
Combined NYSE & NASDAQ Advance - Decline: 4734-1747
Combined NYSE & NASDAQ New highs - New lows: 758-33 (beyond extreme: ridiculous)
WTI crude oil: 95.61, +1.62
Gold: 1,464.20, -3.40
Silver: 24.01, +0.184
Never mind that the numbers are mostly a fabrication of modeling, birth-death adjustments, include part-time employees and that the average workweek fell by 0.1%, effectively eliminating most of the gain, or that the March figure was 50% off and raised to a new level, it worked wonders for the market, soullessly searching for any kind of news, good, bad or inconsequential.
Whether one believes these numbers are meaningful, truthful or indicative of anything, doesn't really matter. It's simply more fodder for the one-percenters with which to feed their insatiable greed.
Welcome to the new world dis-order. Enjoy the Kentucky Derby and the weekend. At least we believe the horse races to be honest gambling venues.
Dow 14,973.96, +142.38 (0.96%)
NASDAQ 3,378.63, +38.01 (1.14%)
S&P 500 1,614.42, +16.83 (1.05%)
NYSE Composite 9,340.37, +93.64 (1.01%)
NASDAQ Volume 1,671,711,875
NYSE Volume 3,914,186,250
Combined NYSE & NASDAQ Advance - Decline: 4734-1747
Combined NYSE & NASDAQ New highs - New lows: 758-33 (beyond extreme: ridiculous)
WTI crude oil: 95.61, +1.62
Gold: 1,464.20, -3.40
Silver: 24.01, +0.184
Thursday, May 2, 2013
Markets Say 'Never Mind' about Wednesday's Declines
In a real-life parody of Gilda Radner's Saturday Night Live character, Emily Litella, stocks, commodities, everything simply took no heed of Wednesday's steep declines and said, "ever mind," as though they had been mistaken about the direction of the economy, the advisement from the Fed's FOMC, or something, and thus, virtually erased all of the bad from the day before.
Not to say that these markets are fickle, but there happens to be a very good explanation why all risk assets were hammered lower the previous session: no TOMO.
TOMO stands for Temporary Open Market Operations (as opposed to POMO, which are Permanent operations), the facility by which the Fed creates new money and promptly hands it over to the primary dealers, and, supposedly, other good friends of Uncle Ben Bernanke - he of the big heart - and the money is put to work goosing the prices of everything that isn't glued down, that being mostly stocks, but also, commodities.
In order to keep up with the game, the Fed has published a list of dates and amounts for the purchase of Treasuries, here. In may the Fed will purchase $44 billion worth of treasuries because they bought a billion too many last month ($46 billion) There is a separate list elsewhere on their site for Agency-backed securities purchases which amount to roughly $40 billion per month.
So, save those dates! Those are not days to go short the market, but they are certainly the ones you'll want to be long stocks, because the Fed is supplying the capital.
Sometimes, the reality is so stupid and obvious one has to just wonder how the whole system hasn't blown up already.
Dow 14,831.58, +130.63 (0.89%)
NASDAQ 3,340.62, +41.49 (1.26%)
S&P 500 1,597.59, +14.89 (0.94%)
NYSE Composite 9,246.72, +70.93 (0.77%)
NASDAQ Volume 1,715,556,375
NYSE Volume 3,686,534,250
Combined NYSE & NASDAQ Advance - Decline: 4856-1594
Combined NYSE & NASDAQ New highs - New lows: 395-46
WTI crude oil: 93.99, +2.96
Gold: 1,467.60, +21.40
Silver: 23.83, +0.487
Not to say that these markets are fickle, but there happens to be a very good explanation why all risk assets were hammered lower the previous session: no TOMO.
TOMO stands for Temporary Open Market Operations (as opposed to POMO, which are Permanent operations), the facility by which the Fed creates new money and promptly hands it over to the primary dealers, and, supposedly, other good friends of Uncle Ben Bernanke - he of the big heart - and the money is put to work goosing the prices of everything that isn't glued down, that being mostly stocks, but also, commodities.
In order to keep up with the game, the Fed has published a list of dates and amounts for the purchase of Treasuries, here. In may the Fed will purchase $44 billion worth of treasuries because they bought a billion too many last month ($46 billion) There is a separate list elsewhere on their site for Agency-backed securities purchases which amount to roughly $40 billion per month.
So, save those dates! Those are not days to go short the market, but they are certainly the ones you'll want to be long stocks, because the Fed is supplying the capital.
Sometimes, the reality is so stupid and obvious one has to just wonder how the whole system hasn't blown up already.
Dow 14,831.58, +130.63 (0.89%)
NASDAQ 3,340.62, +41.49 (1.26%)
S&P 500 1,597.59, +14.89 (0.94%)
NYSE Composite 9,246.72, +70.93 (0.77%)
NASDAQ Volume 1,715,556,375
NYSE Volume 3,686,534,250
Combined NYSE & NASDAQ Advance - Decline: 4856-1594
Combined NYSE & NASDAQ New highs - New lows: 395-46
WTI crude oil: 93.99, +2.96
Gold: 1,467.60, +21.40
Silver: 23.83, +0.487
Wednesday, May 1, 2013
'Sell in May' the Mantra for Almost All Asset Classes
The first day of may held true to the tried and true market adage, "sell in May and stay away," as all asset classes declined, though commodity prices were hardest hit and forex barely budged.
Stocks took it on the chin from traders who continue to see horror in economic data, today's fright fest courtesy of the ADP Employment Index, construction spending and the ISM Index.
ADP said the economy missed its target of 150,000 new jobs by a wide amount, coming in at 119,000 for April and revised March lower as well. Construction spending shrank by 1.7% on expectations of a 0.4% increase, and the ISM reading, though nearly in line with expectations, registered a relatively weak 50.7, just barely above the 50 mark which signals growth above the number or decline below it.
It was likely the ADP figure that sent stocks careening at the open, but it wasn't until after the FOMC announcement at 2:00 pm EDT that stocks really began to slump deeply, finishing near the lows of the day after the Fed said they would keeps rates as they were, to the surprise of absolutely nobody. Daily volume was moderate.
The Vix spiked above 14.50, a signal that risk was being sold off, though still mired in a low range. Gold, silver and oil all surpassed the losses in stocks, with crude take=ing the biggest dive. WTI and Brent continue to converge; the expectation is that they will align at some point so that there is a global price for oil. Currently, futures are less than $10 apart, with Brent the higher of the two, falling below $100 per barrel as Europe's recession/depression begins to reach epic proportions.
As for gold and silver, the paper prices posted don't really seem to matter any more, as the price for physical metal has departed company from the spot price in nearly every venue in every country on the planet. People are aware of currency debasement and are seeking ways to preserve what little wealth remains in this era of extreme punishment for savers.
Treasuries have fallen below the recent plateau levels and continue to point up weakness in the economy and the need for some to flee to safe havens. As inflation remains subdued - using a Fedspeak term - bond holders are not losing much over time, though durations shorter than five years are yielding almost nothing. The benchmark ten-year was last seen around 1.63% yield.
The first day of the new month brought out the bears, though it remains to be seen whether this is the beginning of a trend or just a one-trick pony. The government's non-farm payroll data, due out Friday prior to the opening, should be the highlight of the week. Anticipation is for 155,000 new jobs created in April, but, after ADP's disappointing numbers this morning, prospects appear dim.
Dow 14,700.95, -138.85 (0.94%)
NASDAQ 3,299.13, -29.66 (0.89%)
S&P 500 1,582.70, -14.87 (0.93%)
NYSE Composite 9,174.76, -102.12 (1.10%)
NASDAQ Volume 1,769,443,125
NYSE Volume 3,697,257,75o
Combined NYSE & NASDAQ Advance - Decline: 1665-4789
Combined NYSE & NASDAQ New highs - New lows: 377-53
WTI crude oil: 91.03, -2.43
Gold: 1,446.20, -25.90
Silver: 23.34, -0.842
Stocks took it on the chin from traders who continue to see horror in economic data, today's fright fest courtesy of the ADP Employment Index, construction spending and the ISM Index.
ADP said the economy missed its target of 150,000 new jobs by a wide amount, coming in at 119,000 for April and revised March lower as well. Construction spending shrank by 1.7% on expectations of a 0.4% increase, and the ISM reading, though nearly in line with expectations, registered a relatively weak 50.7, just barely above the 50 mark which signals growth above the number or decline below it.
It was likely the ADP figure that sent stocks careening at the open, but it wasn't until after the FOMC announcement at 2:00 pm EDT that stocks really began to slump deeply, finishing near the lows of the day after the Fed said they would keeps rates as they were, to the surprise of absolutely nobody. Daily volume was moderate.
The Vix spiked above 14.50, a signal that risk was being sold off, though still mired in a low range. Gold, silver and oil all surpassed the losses in stocks, with crude take=ing the biggest dive. WTI and Brent continue to converge; the expectation is that they will align at some point so that there is a global price for oil. Currently, futures are less than $10 apart, with Brent the higher of the two, falling below $100 per barrel as Europe's recession/depression begins to reach epic proportions.
As for gold and silver, the paper prices posted don't really seem to matter any more, as the price for physical metal has departed company from the spot price in nearly every venue in every country on the planet. People are aware of currency debasement and are seeking ways to preserve what little wealth remains in this era of extreme punishment for savers.
Treasuries have fallen below the recent plateau levels and continue to point up weakness in the economy and the need for some to flee to safe havens. As inflation remains subdued - using a Fedspeak term - bond holders are not losing much over time, though durations shorter than five years are yielding almost nothing. The benchmark ten-year was last seen around 1.63% yield.
The first day of the new month brought out the bears, though it remains to be seen whether this is the beginning of a trend or just a one-trick pony. The government's non-farm payroll data, due out Friday prior to the opening, should be the highlight of the week. Anticipation is for 155,000 new jobs created in April, but, after ADP's disappointing numbers this morning, prospects appear dim.
Dow 14,700.95, -138.85 (0.94%)
NASDAQ 3,299.13, -29.66 (0.89%)
S&P 500 1,582.70, -14.87 (0.93%)
NYSE Composite 9,174.76, -102.12 (1.10%)
NASDAQ Volume 1,769,443,125
NYSE Volume 3,697,257,75o
Combined NYSE & NASDAQ Advance - Decline: 1665-4789
Combined NYSE & NASDAQ New highs - New lows: 377-53
WTI crude oil: 91.03, -2.43
Gold: 1,446.20, -25.90
Silver: 23.34, -0.842
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