Shockingly, Stocks Lose Ground

Well, that didn't take long.

Yesterday, in a pique of exasperation over levitating equity markets trading on Fed liquidity rather than fundamentals (it's only been this way for four years, as of today), I promised no further commentary until the markets posted a negative session.

And, presto, there it is, though, as down days are measured, this one wasn't much of anything.

The rationale behind not commenting was due to recent market activity, in a framework in which nearly all economic data has been sour or outright bad. Markets have come to ignore reality "on the ground," in favor of a more optimistic mindset. Beginning April 18, the Dow Industrials had posted gains 13 of the past 14 days, prior to today. Ignorance may be blissful, but making money off it seems somehow wrong.

At least the range was a little better than it has been. The Dow was down nearly sixty points at its nadir, and up about 41 at the peak, so the range was about 100 points, top to bottom, not exactly what one might call volatile, being less than one percent, but better than it has been, suggesting that maybe a few people are getting a little skittish about where this is all heading.

That place may be Nirvana to some, but from the looks of things on Main Street, USA, there is scarcely a resemblance to the unbridled euphoria that infects Wall Street every time they ring the opening bell. Traders have been - and likely will be - making money hand over fist on the upside, without having to bother checking fundamentals, scouring stocks for the best picks nor doing intensive research. Simply playing the indices have brought gains of great magnitude, and leveraging... well, it doesn't get much better than that.

Technicians may want to keep an eye on the Dow Transports (^DJT), as they confirmed the new highs yesterday, but took quite a tumble of some 72 points today (1.13%). While the transportation index may be back-loading the gains on the Industrials, it could also be front-running and telegraphing a decline.

But, of course, this is just one day, and we all know that tonight Ben Bernanke will crank up the printing press once again and tomorrow will be all roses, unicorns and skittles.

That may sound sarcastic, because it is.

Printing money with nothing to back it except empty promises always leads to economic catastrophe.

Every time, and this time is no different.

Dow 15,082.62, -22.50 (0.15%)
NASDAQ 3,409.17, -4.10 (0.12%)
S&P 500 1,626.67, -6.02 (0.37%)
NYSE Composite 9,401.05, -62.26 (0.66%)
NASDAQ Volume 1,746,976,625
NYSE Volume 3,482,779,000
Combined NYSE & NASDAQ Advance - Decline: 2358-4009
Combined NYSE & NASDAQ New highs - New lows: 588-34
WTI crude oil: 96.39, -0.23
Gold: 1,468.60, -5.10
Silver: 23.91, -0.016

No Comment on Continuing Ramp

No comment until stocks post a losing session. Until then, just the numbers.

Dow 15,105.12, +48.92 (0.32%)
NASDAQ 3,413.27, +16.64 (0.49%)
S&P 500 1,632.69, +6.73 (0.41%)
NYSE Composite 9,463.32, +54.31 (0.58%)
NASDAQ Volume 1,715,862,500.00
NYSE Volume 3,797,192,750
Combined NYSE & NASDAQ Advance - Decline: 4088-2261
Combined NYSE & NASDAQ New highs - New lows: 724-29
WTI crude oil: 96.62, +1.00
Gold: 1,473.70, +24.90
Silver: 23.93, +0.121

Stocks. Must. Go. Higher.

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

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

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