Japan's Nikkei was down more than six percent on Thursday, the US$/YEN carry trade busted as that fell below 94. Stocks in Europe were down hard. By all indications, US stocks should have taken another serious leg lower, but instead, we got an algo-driven, out-of-the-blue hockey stick magic rally that erased the declines of the past two days on marginal volume.
This is why individual investors don't trade in or trust the stock markets. They are rigged - and broken - beyond anyone's wildest imagination.
Dow 15,176.08, +180.85 (1.21%)
NASDAQ 3,445.37, +44.94 (1.32%)
S&P 500 1,636.36, +23.84 (1.48%)
NYSE Composite 9,331.37, +141.93 (1.54%)
NASDAQ Volume 1,548,629,625
NYSE Volume 3,840,153,500
Combined NYSE & NASDAQ Advance - Decline: 5176-1318
Combined NYSE & NASDAQ New highs - New lows: 155-395
WTI crude oil: 96.69, +0.81
Gold: 1,377.80, -14.20
Silver: 21.58, -0.213
Thursday, June 13, 2013
Wednesday, June 12, 2013
Stocks Erase Early Gains; Dow Down Three Straight for First Time in 2013
Equities took another shot to the ribs on Tuesday as bears took control of the trading.
After an initial gain of 119 points on the Dow, sentiment turned radically negative for really no apparent reason, as selling into strength became the preferred strategy after months of buying dips.
The Dow posted its first three-day losing streak of 2013, with the other major averages following suit. Today's closing numbers put the S&P and the Dow dangerously close to their 50-day moving averages: 1610 for the S&P; 14970 on the Dow, and, any troubling signs from Thursday's initial unemployment claims could shoot the averages right through support and into a proverbial no-man's land.
Trading volume was rather tepid, but losers outnumbered gainers again, by a roughly 3:1 margin. The major indices now have entered an area that is decisively below the midpoint between recent highs and lows, trending lower, as has been the mantra for most of the month of June.
The dark lining inside the silver cloud came in the form of WTI crude oil prices, which hit a three-week high.
Bias remains bearish short-term, as new lows outpaced new highs for the second straight session and are deteriorating.
Where this goes from here is anyone's guess, though most are placing their wagers toward continued weakness in stocks as interest rates bumped up slightly again today, the 10-year closing at 2.23%, but that's what makesgambling investing so interesting.
Dow 14,995.23, -126.79 (0.84%)
NASDAQ 3,400.43, -36.52 (1.06%)
S&P 500 1,612.52, -13.61 (0.84%)
NYSE Composite 9,189.42, -66.06 (0.71%)
NASDAQ Volume 1,501,521,500
NYSE Volume 3,677,878,750
Combined NYSE & NASDAQ Advance - Decline: 1675-4828
Combined NYSE & NASDAQ New highs - New lows: 129-428
WTI crude oil: 95.88, +0.50
Gold: 1,392.00, +15.00
Silver: 21.80, +0.15
After an initial gain of 119 points on the Dow, sentiment turned radically negative for really no apparent reason, as selling into strength became the preferred strategy after months of buying dips.
The Dow posted its first three-day losing streak of 2013, with the other major averages following suit. Today's closing numbers put the S&P and the Dow dangerously close to their 50-day moving averages: 1610 for the S&P; 14970 on the Dow, and, any troubling signs from Thursday's initial unemployment claims could shoot the averages right through support and into a proverbial no-man's land.
Trading volume was rather tepid, but losers outnumbered gainers again, by a roughly 3:1 margin. The major indices now have entered an area that is decisively below the midpoint between recent highs and lows, trending lower, as has been the mantra for most of the month of June.
The dark lining inside the silver cloud came in the form of WTI crude oil prices, which hit a three-week high.
Bias remains bearish short-term, as new lows outpaced new highs for the second straight session and are deteriorating.
Where this goes from here is anyone's guess, though most are placing their wagers toward continued weakness in stocks as interest rates bumped up slightly again today, the 10-year closing at 2.23%, but that's what makes
Dow 14,995.23, -126.79 (0.84%)
NASDAQ 3,400.43, -36.52 (1.06%)
S&P 500 1,612.52, -13.61 (0.84%)
NYSE Composite 9,189.42, -66.06 (0.71%)
NASDAQ Volume 1,501,521,500
NYSE Volume 3,677,878,750
Combined NYSE & NASDAQ Advance - Decline: 1675-4828
Combined NYSE & NASDAQ New highs - New lows: 129-428
WTI crude oil: 95.88, +0.50
Gold: 1,392.00, +15.00
Silver: 21.80, +0.15
Tuesday, June 11, 2013
Stocks Decline Globally as QE and ZIRP Show There are Limits
With losers outpacing gainers by a 4:1 margin, stocks got trashed today around the globe, starting in Japan - which triggered the entire equity rout - and ending here in the USA where the Dow lost 108 points, and, despite that stiff selloff, was still easily the best performer of the major indices on a percentage basis.
The NASDAQ and NYSE Composite took the day's losses the worst, off 1.06% and 1.10% respectively. The S&P dropped by just more than one percent.
The worldwide selling spree was set off when the Japanese leadership declined to extend their bond and market easing measures past what was already in place. Speculators expected the BoJ to increase bond and ETF purchases, but came away disappointed.
That sent the Nikkei and Topix tumbling to the downside, and greeted European investors with markedly negative prospects as their trading day began.
In the US, futures were heavily to the downside, resulting in the indices hitting their lowest points just minutes into trading. Remarkably, stocks came nearly all the way back - with the Dow going positive for a few moments before noon, but the low-volume rally fooled nobody and sellers came back in force to take stocks back down for the rest of the session.
Adding to the already nervous environment, the 10-year note bounced up as high as 2.28%, but ended the day at a relatively benign 2.18%, though fear of higher rates and a tapering of the Fed's bond buying program remained a key market driver in both stocks and bonds.
A fortnight of protests in Turkey finally exploded into a somewhat violent repression by government forces, who used water cannons and tear gas to disperse about 10,000 protesters. Also, late in the day, news broke that the ACLU had filed suit against the US government over the NSA's recently-exposed monitoring of nearly all domestic communications, calling the activity unconstitutional.
This is truly a dangerous environment, both for investors and ordinary citizens. Stocks are hovering in a range just below all-time highs and recent lows, while Washington is awash in scandals ranging from covering up the assassination of a diplomat and others in Libya (Benghazi), to wiretapping reporters to having the IRS harass political opposition. In another time, there would be protests all over the Washington Mall and cries for impeachment of president Obama would be drowning out reasonable discourse. But, Americans have grown so used to government malfeasance and the country has become so dependent on government entitlements that nobody seems capable of raising their voice to an administration and a congress that has trampled the constitution ever since 9/11/2001.
What will it take to shake things up and clean the garbage out of our corrupt-to-the-core political and financial system? A severe market crash? A politician with will and integrity? A hot war in Syria? Something else?
Stay tuned for what should develop into a very contentious, heated summer of pandemonium in markets and politics. The events of the past two to three weeks have been just the warm-up act. The main attraction begins when the cronies turn on each other.
Dow 15,122.02, -116.57 (0.76%)
NASDAQ 3,436.95, -36.82 (1.06%)
S&P 500 1,626.13, -16.68 (1.02%)
NYSE Composite 9,255.44, -102.56 (1.10%)
NASDAQ Volume 1,477,085,500
NYSE Volume 3,854,662,750
Combined NYSE & NASDAQ Advance - Decline: 1286-5251
Combined NYSE & NASDAQ New highs - New lows: 131-308
WTI crude oil: 95.38, -0.39
Gold: 1,377.00, -9.00
Silver: 21.65, -0.279
The NASDAQ and NYSE Composite took the day's losses the worst, off 1.06% and 1.10% respectively. The S&P dropped by just more than one percent.
The worldwide selling spree was set off when the Japanese leadership declined to extend their bond and market easing measures past what was already in place. Speculators expected the BoJ to increase bond and ETF purchases, but came away disappointed.
That sent the Nikkei and Topix tumbling to the downside, and greeted European investors with markedly negative prospects as their trading day began.
In the US, futures were heavily to the downside, resulting in the indices hitting their lowest points just minutes into trading. Remarkably, stocks came nearly all the way back - with the Dow going positive for a few moments before noon, but the low-volume rally fooled nobody and sellers came back in force to take stocks back down for the rest of the session.
Adding to the already nervous environment, the 10-year note bounced up as high as 2.28%, but ended the day at a relatively benign 2.18%, though fear of higher rates and a tapering of the Fed's bond buying program remained a key market driver in both stocks and bonds.
A fortnight of protests in Turkey finally exploded into a somewhat violent repression by government forces, who used water cannons and tear gas to disperse about 10,000 protesters. Also, late in the day, news broke that the ACLU had filed suit against the US government over the NSA's recently-exposed monitoring of nearly all domestic communications, calling the activity unconstitutional.
This is truly a dangerous environment, both for investors and ordinary citizens. Stocks are hovering in a range just below all-time highs and recent lows, while Washington is awash in scandals ranging from covering up the assassination of a diplomat and others in Libya (Benghazi), to wiretapping reporters to having the IRS harass political opposition. In another time, there would be protests all over the Washington Mall and cries for impeachment of president Obama would be drowning out reasonable discourse. But, Americans have grown so used to government malfeasance and the country has become so dependent on government entitlements that nobody seems capable of raising their voice to an administration and a congress that has trampled the constitution ever since 9/11/2001.
What will it take to shake things up and clean the garbage out of our corrupt-to-the-core political and financial system? A severe market crash? A politician with will and integrity? A hot war in Syria? Something else?
Stay tuned for what should develop into a very contentious, heated summer of pandemonium in markets and politics. The events of the past two to three weeks have been just the warm-up act. The main attraction begins when the cronies turn on each other.
Dow 15,122.02, -116.57 (0.76%)
NASDAQ 3,436.95, -36.82 (1.06%)
S&P 500 1,626.13, -16.68 (1.02%)
NYSE Composite 9,255.44, -102.56 (1.10%)
NASDAQ Volume 1,477,085,500
NYSE Volume 3,854,662,750
Combined NYSE & NASDAQ Advance - Decline: 1286-5251
Combined NYSE & NASDAQ New highs - New lows: 131-308
WTI crude oil: 95.38, -0.39
Gold: 1,377.00, -9.00
Silver: 21.65, -0.279
Monday, June 10, 2013
No Follow-Through after Big Friday Run-Up; Stocks Open Week Flat
Stocks meandered along the unchanged line all day in a fairly tight range (90 points top to bottom on the Dow), just one trading day removed from the second-largest gains of the year, attributed largely to the benign number supplied by the BLS on jobs.
The only news worth noting were S&P revising the US credit rating from neutral to stable and the weekend revelation that the whistleblower who exposed the wide-ranging NSA data collection of Americans' phone and internet dealings is a 29-year-old named Edward Snowden.
Neither story had much of a macro-level impact on markets, though the coming forward of Snowden has raised the stakes in the game of chicken the government is playing with the American public (remember, you're being watched right now... creepy, isn't it?).
Volume was typically summer-light, as many investors or traders have already gone into "stay away" mode for the season.
The market is desperate for direction, stuck between recent new all-time highs and the bottoms of last week's abbreviated pullback.
Where it goes from here depends largely on whatever comes out of the mouths of varius Fed governors and officials, leading up to next week's FOMC policy meeting, so this languishing could last a while.
Stocks haven't been in such a ho-hum mood since... well, last summer.
Dow 15,238.59, -9.53 (0.06%)
NASDAQ 3,473.77, +4.55 (0.13%)
S&P 500 1,642.81, -0.57 (0.03%)
NYSE Composite 9,353.20, -2.21 (0.02%)
NASDAQ Volume 1,495,601,750
NYSE Volume 3,068,391,750
Combined NYSE & NASDAQ Advance - Decline: 3326-3162
Combined NYSE & NASDAQ New highs - New lows: 258-120
WTI crude oil: 95.77, -0.26
Gold: 1,386.00, +3.00
Silver: 21.92, +0.182
The only news worth noting were S&P revising the US credit rating from neutral to stable and the weekend revelation that the whistleblower who exposed the wide-ranging NSA data collection of Americans' phone and internet dealings is a 29-year-old named Edward Snowden.
Neither story had much of a macro-level impact on markets, though the coming forward of Snowden has raised the stakes in the game of chicken the government is playing with the American public (remember, you're being watched right now... creepy, isn't it?).
Volume was typically summer-light, as many investors or traders have already gone into "stay away" mode for the season.
The market is desperate for direction, stuck between recent new all-time highs and the bottoms of last week's abbreviated pullback.
Where it goes from here depends largely on whatever comes out of the mouths of varius Fed governors and officials, leading up to next week's FOMC policy meeting, so this languishing could last a while.
Stocks haven't been in such a ho-hum mood since... well, last summer.
Dow 15,238.59, -9.53 (0.06%)
NASDAQ 3,473.77, +4.55 (0.13%)
S&P 500 1,642.81, -0.57 (0.03%)
NYSE Composite 9,353.20, -2.21 (0.02%)
NASDAQ Volume 1,495,601,750
NYSE Volume 3,068,391,750
Combined NYSE & NASDAQ Advance - Decline: 3326-3162
Combined NYSE & NASDAQ New highs - New lows: 258-120
WTI crude oil: 95.77, -0.26
Gold: 1,386.00, +3.00
Silver: 21.92, +0.182
Friday, June 7, 2013
Stocks Pop on Jobs Data; Gold, Silver Smashed Again
Was there ever any doubt?
After a volatile week, stocks staged a huge run-up on Friday - the second-best advance for the Dow this year - after the non-farm payroll report from the BLS showed a gain in employment of 175,000 jobs for May.
The number, always an important one - or so we're led to believe - was really of the Goldilocks variety: not too hot to encourage tapering by the Fed, and not too cold to actually show weakness in the US economy. The BLS delivered a number that was "just right" and it was off to the races, right from the opening bell.
Stocks finished near the highs of the day, but for the week were less impressive. The Dow closed up 133 points for the week, but that was six points below Monday's close. The NASDAQ added 133 points, while the S&P was up 12. The 10-year note closed out at 2.17, a somewhat scary number, the highest in more than six months.
Whether the day's gains were due to the employment figures or the fact that it was a Friday - a day in which stocks have shown a great propensity to fly, with or without wings - is one for the theorists to argue.
The question is where do stocks go from here, as they are smack-dab in between all-time highs and a nasty little bottom from the middle of the week. In normal times, one would expect a retracement to re-test the lows, but these are anything but normal times.
Gold and silver were beaten down once again, this time, silver being the main target of the central banks, sending gold's shiny cousin to its worst closing level since September of 2010, though it needs to be pointed out that the spot price no longer correlates to the actual price of acquiring physical metal, that being currently around $28-30.
WTI crude oil continued its relentless ascent toward the $100/barrel mark.
The games continue.
Dow 15,248.12, +207.50 (1.38%)
NASDAQ 3,469.21, +45.16 (1.32%)
S&P 500 1,643.38, +20.82 (1.28%)
NYSE Composite 9,356.91, +96.41 (1.04%)
NASDAQ Volume 1,600,646,875
NYSE Volume 3,439,967,000
Combined NYSE & NASDAQ Advance - Decline: 4318-2217
Combined NYSE & NASDAQ New highs - New lows: 204-41
WTI crude oil: 96.03, +1.27
Gold: 1,383.00, -32.80
Silver: 21.74, -0.964
After a volatile week, stocks staged a huge run-up on Friday - the second-best advance for the Dow this year - after the non-farm payroll report from the BLS showed a gain in employment of 175,000 jobs for May.
The number, always an important one - or so we're led to believe - was really of the Goldilocks variety: not too hot to encourage tapering by the Fed, and not too cold to actually show weakness in the US economy. The BLS delivered a number that was "just right" and it was off to the races, right from the opening bell.
Stocks finished near the highs of the day, but for the week were less impressive. The Dow closed up 133 points for the week, but that was six points below Monday's close. The NASDAQ added 133 points, while the S&P was up 12. The 10-year note closed out at 2.17, a somewhat scary number, the highest in more than six months.
Whether the day's gains were due to the employment figures or the fact that it was a Friday - a day in which stocks have shown a great propensity to fly, with or without wings - is one for the theorists to argue.
The question is where do stocks go from here, as they are smack-dab in between all-time highs and a nasty little bottom from the middle of the week. In normal times, one would expect a retracement to re-test the lows, but these are anything but normal times.
Gold and silver were beaten down once again, this time, silver being the main target of the central banks, sending gold's shiny cousin to its worst closing level since September of 2010, though it needs to be pointed out that the spot price no longer correlates to the actual price of acquiring physical metal, that being currently around $28-30.
WTI crude oil continued its relentless ascent toward the $100/barrel mark.
The games continue.
Dow 15,248.12, +207.50 (1.38%)
NASDAQ 3,469.21, +45.16 (1.32%)
S&P 500 1,643.38, +20.82 (1.28%)
NYSE Composite 9,356.91, +96.41 (1.04%)
NASDAQ Volume 1,600,646,875
NYSE Volume 3,439,967,000
Combined NYSE & NASDAQ Advance - Decline: 4318-2217
Combined NYSE & NASDAQ New highs - New lows: 204-41
WTI crude oil: 96.03, +1.27
Gold: 1,383.00, -32.80
Silver: 21.74, -0.964
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