Sure, today's rally was real. Fireworks, Friday.
Enjoy the 4th and celebrate your freedoms... those of which we still have left.
Dow 14,988.55, +56.14 (0.38%)
NASDAQ 3,443.67, +10.27 (0.30%)
S&P 500 1,615.41, +1.33 (0.08%)
NYSE Composite 9,135.09, -9.64 (0.11%)
NASDAQ Volume 914,058,312.50
NYSE Volume 2,174,899,000
Combined NYSE & NASDAQ Advance - Decline: 1916-3343
Combined NYSE & NASDAQ New highs - New lows: 163-56
WTI crude oil: 101.24, +1.64
Gold: 1,251.90, +8.50
Silver: 19.70, +0.391
Wednesday, July 3, 2013
Tuesday, July 2, 2013
Turn-Around Tuesday: Stocks Gain Early, Finish Red
There isn't really much to this stock story. The Bulls and Bears went to the wall today and guess what?
The Bears won.
It's a holiday-shortened week, loaded with economic data, not the least of which are tomorrow's ADP June employment report and Friday's BLS Non-Farm payroll issue. Turmoil in Egypt is causing consternation and earnings releases are right around the corner.
For the short-timers, the payroll data is paramount, but the trend keeps biasing to the downside. It's mid-summer, stocks are expected to report weaker earnings, all the while the US dollar is gaining against almost all other currencies as the cleanest shirt in the laundry bin.
Lots of headwinds and most astute players have already established positions. The only matter may be how far down stocks must dive to flush out the more-hardened holders.
Even though tomorrow is a short session, closing at 1:00 pm EDT, there should be fireworks ahead. Keep a close eye on the 14,850 level on the Dow as key support.
Dow 14,932.41, -42.55 (0.28%)
NASDAQ 3,433.40, -1.09 (0.03%)
S&P 500 1,614.08, -0.88 (0.05%)
NYSE Composite 9,144.59, -23.30 (0.25%)
NASDAQ Volume 1,645,609,250
NYSE Volume 3,621,029,000
Combined NYSE & NASDAQ Advance - Decline: 2778-3734
Combined NYSE & NASDAQ New highs - New lows: 301-48
WTI crude oil: 99.60, +1.61
Gold: 1,243.40, -12.30
Silver: 19.31, -0.269
The Bears won.
It's a holiday-shortened week, loaded with economic data, not the least of which are tomorrow's ADP June employment report and Friday's BLS Non-Farm payroll issue. Turmoil in Egypt is causing consternation and earnings releases are right around the corner.
For the short-timers, the payroll data is paramount, but the trend keeps biasing to the downside. It's mid-summer, stocks are expected to report weaker earnings, all the while the US dollar is gaining against almost all other currencies as the cleanest shirt in the laundry bin.
Lots of headwinds and most astute players have already established positions. The only matter may be how far down stocks must dive to flush out the more-hardened holders.
Even though tomorrow is a short session, closing at 1:00 pm EDT, there should be fireworks ahead. Keep a close eye on the 14,850 level on the Dow as key support.
Dow 14,932.41, -42.55 (0.28%)
NASDAQ 3,433.40, -1.09 (0.03%)
S&P 500 1,614.08, -0.88 (0.05%)
NYSE Composite 9,144.59, -23.30 (0.25%)
NASDAQ Volume 1,645,609,250
NYSE Volume 3,621,029,000
Combined NYSE & NASDAQ Advance - Decline: 2778-3734
Combined NYSE & NASDAQ New highs - New lows: 301-48
WTI crude oil: 99.60, +1.61
Gold: 1,243.40, -12.30
Silver: 19.31, -0.269
Monday, July 1, 2013
Stocks Trade Higher, Rally Loses Steam in Afternoon
Stocks came roaring out of the gate on the first day of trading of the second half and third quarter of the year, spirits high after massive gains though the first half of 2013.
Traders were willfully ignorant of data coming out of China, where manufacturing is is not growing, but actually contracting and has been for the past four to six months. Nobody in their right minds believes data coming out of the red state, so can one now suppose that they're lying about things being as bad as they really are?
Regardless, the euphoria over the global economy drifting toward another Lehman-like moment made European bourses uptick and the contagion caught America in full blossom.
It didn't last long, however, as stocks made the day's highs shortly after US ISM data for June limped in at 50.9, but being above the 50.5 estimate, the slick traders boosted stocks beaten down much of the past two weeks. The Dow was up 173 points, but erased more than half of those gains by day's end, in a classic up early, down later bear market pattern.
Dow 14,974.96, +65.36 (0.44%)
NASDAQ 3,434.49, +31.24 (0.92%)
S&P 500 1,614.96, +8.68 (0.54%)
NYSE Composite 9,167.88, +55.18 (0.61%)
NASDAQ Volume 1,572,239,500
NYSE Volume 3,525,776,750
Combined NYSE & NASDAQ Advance - Decline: 4685-1866
Combined NYSE & NASDAQ New highs - New lows: 404-19
WTI crude oil: 97.99, +1.43
Gold: 1,255.70, +32.00
Silver: 19.58, +0.108
Traders were willfully ignorant of data coming out of China, where manufacturing is is not growing, but actually contracting and has been for the past four to six months. Nobody in their right minds believes data coming out of the red state, so can one now suppose that they're lying about things being as bad as they really are?
Regardless, the euphoria over the global economy drifting toward another Lehman-like moment made European bourses uptick and the contagion caught America in full blossom.
It didn't last long, however, as stocks made the day's highs shortly after US ISM data for June limped in at 50.9, but being above the 50.5 estimate, the slick traders boosted stocks beaten down much of the past two weeks. The Dow was up 173 points, but erased more than half of those gains by day's end, in a classic up early, down later bear market pattern.
Dow 14,974.96, +65.36 (0.44%)
NASDAQ 3,434.49, +31.24 (0.92%)
S&P 500 1,614.96, +8.68 (0.54%)
NYSE Composite 9,167.88, +55.18 (0.61%)
NASDAQ Volume 1,572,239,500
NYSE Volume 3,525,776,750
Combined NYSE & NASDAQ Advance - Decline: 4685-1866
Combined NYSE & NASDAQ New highs - New lows: 404-19
WTI crude oil: 97.99, +1.43
Gold: 1,255.70, +32.00
Silver: 19.58, +0.108
Friday, June 28, 2013
First Half Boffo for Stocks, But Ends on a Stinker
As odd as the recent equity market has been, today's action ranked right up there in bizarro-land.
First, the Chicago PMI was leaked a few minutes early (which has been alleged to have happened at least twice in the past), sending stocks screaming lower. The 51.6 figure was well below estimates of 55.0, sending stocks to their lows of the day just after 10:00 am EDT, the Dow off by some 140 points. An hour later, however, all was forgotten and presumably forgiven, as the Dow briefly peaked above the flat line.
The remainder of the session had the NASDAQ modestly higher, the S&P hugging the unchanged mark and the Dow drifting about in the red.
That was until the very final minutes of the day, when the Russell 2000 rebalancing sent stocks screeching lower once again, all of the indices finishing near their lows, ending the first half of the trading year with a resounding thud.
Even though US stocks have out-performed just about every other asset class on the planet over the first six months of 2013, the last month has been quite the disappointment, June being the only down month of the year for the major averages, and the first down month for the Dow Industrials since November, 2012.
For the week, the Dow gained 110 points, down both Monday and Friday, while up sharply mid-week. The NASDAQ picked up 46 points for the week, while the S&P 500 added 13.85. Each of the indices closed out the month, the second quarter and the first half below their 50-day moving averages.
While gains in equities were easy to come by in the first half of the year, the second half holds many challenges, especially with many funds and big hitters already sitting on impressive gains. Most of the major brokerages have been diddling with second half projections, most of they of the rosy variety.
We shall see as the market opens with a holiday shortened week on July 1.
Gold reversed course from yesterday's manic selloff, while silver added more than 5% on the day, a possible market reversal for the precious metals.
Dow 14,909.60, -114.89 (0.76%)
NASDAQ 3,403.25, +1.38 (0.04%)
S&P 500 1,606.28, -6.92 (0.43%)
NYSE Composite 9,121.62, -21.94 (0.24%)
NASDAQ Volume 2,274,401,750
NYSE Volume 4,899,537,500
Combined NYSE & NASDAQ Advance - Decline: 3342-3116
Combined NYSE & NASDAQ New highs - New lows: 214-53
WTI crude oil: 96.56, -0.49
Gold: 1,231.30, +19.70
Silver: 19.57, +1.037
First, the Chicago PMI was leaked a few minutes early (which has been alleged to have happened at least twice in the past), sending stocks screaming lower. The 51.6 figure was well below estimates of 55.0, sending stocks to their lows of the day just after 10:00 am EDT, the Dow off by some 140 points. An hour later, however, all was forgotten and presumably forgiven, as the Dow briefly peaked above the flat line.
The remainder of the session had the NASDAQ modestly higher, the S&P hugging the unchanged mark and the Dow drifting about in the red.
That was until the very final minutes of the day, when the Russell 2000 rebalancing sent stocks screeching lower once again, all of the indices finishing near their lows, ending the first half of the trading year with a resounding thud.
Even though US stocks have out-performed just about every other asset class on the planet over the first six months of 2013, the last month has been quite the disappointment, June being the only down month of the year for the major averages, and the first down month for the Dow Industrials since November, 2012.
For the week, the Dow gained 110 points, down both Monday and Friday, while up sharply mid-week. The NASDAQ picked up 46 points for the week, while the S&P 500 added 13.85. Each of the indices closed out the month, the second quarter and the first half below their 50-day moving averages.
While gains in equities were easy to come by in the first half of the year, the second half holds many challenges, especially with many funds and big hitters already sitting on impressive gains. Most of the major brokerages have been diddling with second half projections, most of they of the rosy variety.
We shall see as the market opens with a holiday shortened week on July 1.
Gold reversed course from yesterday's manic selloff, while silver added more than 5% on the day, a possible market reversal for the precious metals.
Dow 14,909.60, -114.89 (0.76%)
NASDAQ 3,403.25, +1.38 (0.04%)
S&P 500 1,606.28, -6.92 (0.43%)
NYSE Composite 9,121.62, -21.94 (0.24%)
NASDAQ Volume 2,274,401,750
NYSE Volume 4,899,537,500
Combined NYSE & NASDAQ Advance - Decline: 3342-3116
Combined NYSE & NASDAQ New highs - New lows: 214-53
WTI crude oil: 96.56, -0.49
Gold: 1,231.30, +19.70
Silver: 19.57, +1.037
Thursday, June 27, 2013
Stocks Higher for Third Straight Session; Dow Back Above 15,000; Gold Below $1200
After Ben Bernanke scared the entire investing universe last week, his captains - Fed governors from the various districts - have been talking it back, generally saying that the economy isn't strong enough to support even a tapering of QE, which comes as welcome news to the money-hoarders on Wall Street, who like nothing better than access to capital at close to zero percent with which to play about in their rigged lottery.
So much for ever having a balanced, unstructured, free market that isn't completely held hostage to central planning by the Federal Reserve Bank. With this kind of thinking predominant, it doesn't take much in the way of analytical skills or market knowledge to profit in equities, since, it is, as they say, "the only game in town," complete with the promise of higher returns than bonds and - with the Fed keeping the monetary spigot wide open - limited downside risk.
That's it. We're back to the Fed and big banks running the show, letting savers get slaughtered because the market will not be allowed to do what it normally would: take a pause, maybe a 10-15% correction, and wipe out the mal-investments.
All this means is that it will take a total collapse of the global economy (or at least a large share of it) to get markets back into what would have been considered "normal" just a few years ago.
Zero percent interest rates are not normal. Central banks purchasing every kind of asset - in quantity - that isn't tied down is not normal. The past five years since the crash in September-October of 2008 have been an aberration and when economies return to sound fiscal and monetary practices, the collapse will be colossal, sparing nobody.
Be prepared. There's a good reason for gold and silver to be selling off dramatically while equity prices soar. The fed and their cohort central bankers cannot stop the deflationary spiral their own policies have created. Continuing a non-discount of money over time is, in itself, the root of deflation, yet the Fed seems content to put their own feet forward into the abyss.
In a nutshell, the problem lies with their downward pressure on gold, which has been in backwardation for months. Gold is collateral, meaning it is at the root of the monetary system. By artificially pressuring it ever lower, demand increases, though, because of hoarding, supply eventually becomes non-existent, all other currencies become devoid of value, thus creating the Pandora's-box-like situation where the price of gold is near nothing, but none can be purchased for fiat because all faith has been lost in currencies built on sand, leading, quite logically, to barter, the most primitive, yet most reliable, form of trade.
This is precisely where the current policy-driven, over-sensitized, can't-take-a-paper-loss, unbalanced global economy is headed. It could take as little as a month or as long as 20 years for the entire system to unwind, which is the conundrum currently facing the peoples of the planet. When it does, those barren, rice-paddy farmers in Southeast Asia will be better off than paper billionaires with nothing but broken promises, McMansions and zero productive skills, because the farmers, at least, will be able to raise their own food and have something to eat.
An eye for an eye, or, more aptly, a plot of land for an ounce of gold.
Nice message for an upbeat stock market day, huh? Keep buying into the system of lies, greed, avarice and contempt for one's fellow man and see how far that gets you. When the Dow is at 20,000 or 30,000 or higher and gold is only $500 an ounce, Adam Smith's invisible hand will come clapping down on all the broken rules of economics and crush the fiat currencies flat.
Dow 15,024.49, +114.35 (0.77%)
NASDAQ 3,401.86, +25.64 (0.76%)
S&P 500 1,613.20, +9.94 (0.62%)
NYSE Composite 9,143.55, +76.28 (0.84%)
NASDAQ Volume 1,643,086,125
NYSE Volume 3,722,540,750
Combined NYSE & NASDAQ Advance - Decline: 5311-1227
Combined NYSE & NASDAQ New highs - New lows: 218-60
WTI crude oil: 97.05, +1.55
Gold: 1,198.20, -31.60
Silver: 18.42, -0.162
So much for ever having a balanced, unstructured, free market that isn't completely held hostage to central planning by the Federal Reserve Bank. With this kind of thinking predominant, it doesn't take much in the way of analytical skills or market knowledge to profit in equities, since, it is, as they say, "the only game in town," complete with the promise of higher returns than bonds and - with the Fed keeping the monetary spigot wide open - limited downside risk.
That's it. We're back to the Fed and big banks running the show, letting savers get slaughtered because the market will not be allowed to do what it normally would: take a pause, maybe a 10-15% correction, and wipe out the mal-investments.
All this means is that it will take a total collapse of the global economy (or at least a large share of it) to get markets back into what would have been considered "normal" just a few years ago.
Zero percent interest rates are not normal. Central banks purchasing every kind of asset - in quantity - that isn't tied down is not normal. The past five years since the crash in September-October of 2008 have been an aberration and when economies return to sound fiscal and monetary practices, the collapse will be colossal, sparing nobody.
Be prepared. There's a good reason for gold and silver to be selling off dramatically while equity prices soar. The fed and their cohort central bankers cannot stop the deflationary spiral their own policies have created. Continuing a non-discount of money over time is, in itself, the root of deflation, yet the Fed seems content to put their own feet forward into the abyss.
In a nutshell, the problem lies with their downward pressure on gold, which has been in backwardation for months. Gold is collateral, meaning it is at the root of the monetary system. By artificially pressuring it ever lower, demand increases, though, because of hoarding, supply eventually becomes non-existent, all other currencies become devoid of value, thus creating the Pandora's-box-like situation where the price of gold is near nothing, but none can be purchased for fiat because all faith has been lost in currencies built on sand, leading, quite logically, to barter, the most primitive, yet most reliable, form of trade.
This is precisely where the current policy-driven, over-sensitized, can't-take-a-paper-loss, unbalanced global economy is headed. It could take as little as a month or as long as 20 years for the entire system to unwind, which is the conundrum currently facing the peoples of the planet. When it does, those barren, rice-paddy farmers in Southeast Asia will be better off than paper billionaires with nothing but broken promises, McMansions and zero productive skills, because the farmers, at least, will be able to raise their own food and have something to eat.
An eye for an eye, or, more aptly, a plot of land for an ounce of gold.
Nice message for an upbeat stock market day, huh? Keep buying into the system of lies, greed, avarice and contempt for one's fellow man and see how far that gets you. When the Dow is at 20,000 or 30,000 or higher and gold is only $500 an ounce, Adam Smith's invisible hand will come clapping down on all the broken rules of economics and crush the fiat currencies flat.
Dow 15,024.49, +114.35 (0.77%)
NASDAQ 3,401.86, +25.64 (0.76%)
S&P 500 1,613.20, +9.94 (0.62%)
NYSE Composite 9,143.55, +76.28 (0.84%)
NASDAQ Volume 1,643,086,125
NYSE Volume 3,722,540,750
Combined NYSE & NASDAQ Advance - Decline: 5311-1227
Combined NYSE & NASDAQ New highs - New lows: 218-60
WTI crude oil: 97.05, +1.55
Gold: 1,198.20, -31.60
Silver: 18.42, -0.162
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