Thanks to Bernanke, Stocks Can Only Go Up

It was another completely uneventful day on Wall Street - no earnings news outside of Alcoa (trading at a 34 p/e, wow!), no economic data - so the computer algos were free to ramp stocks higher, and they did so.

A small dip around 10:30 am EDT gave the bears some hope, but that faded fast, and stocks resumed their levitation, hovering listlessly around the highs of the session right into the close.

At these levels of (dis)interest and lack of meaningful news flow, the Dow could conceivably gain 1200-1500 points per month for the remainder of the year. Since nobody seems to give a whit about fundamental valuations, unchecked, Dow 20,000 becomes a distinct possibility by the end of the year.

Seriously, that's how warped these markets are.

God bless you, Ben Bernanke. You've brought untold wealth and prosperity to almost seven percent of Americans, those being the already rich and already prosperous, while denying safe investments bearing standard interest to hard-working, middle and lower-class savers. You are a scion. The bankers you've bailed out and bankrolled with ZIRP and QE should kiss your naked feet and bedeck you in roses and lavender.

Dow 15,300.34, +75.65 (0.50%)
NASDAQ 3,504.26, +19.43 (0.56%)
S&P 500 1,652.32, +11.86 (0.72%)
NYSE Composite 9,341.40, +75.11 (0.81%)
NASDAQ Volume 1,588,836,625
NYSE Volume 3,460,031,000
Combined NYSE & NASDAQ Advance - Decline: 4438-1990
Combined NYSE & NASDAQ New highs - New lows: 585-49
WTI crude oil: 103.53, +0.39
Gold: 1,245.90, +11.00
Silver: 19.14, 0.10

Stocks Gain on 0 News

The was nothing even remotely newsworthy yo kick off the trading week, so, quite un-naturally, stocks gapped higher at the open and maintained a positive bias - except for the NASDAQ, which oddly lagged - for the duration.

Focus was more on the after-hours, when Alcoa (AA) kicked off earnings season for the second quarter, by posting EPS of .07 on expectations of .06, and had in-line revenue.

Dow 15,224.69, +88.85 (0.59%)
NASDAQ 3,484.83, +5.45 (0.16%)
S&P 500 1,640.46, +8.57 (0.53%)
NYSE Composite 9,266.28, +52.10 (0.57%)
NASDAQ Volume 1,476,924,000
NYSE Volume 3,717,259,750
Combined NYSE & NASDAQ Advance - Decline: 3896-2690
Combined NYSE & NASDAQ New highs - New lows: 645-56
WTI crude oil: 103.14, -0.08
Gold: 1,234.90, +22.20
Silver: 19.04, +0.302

Jobs Data Sends Stocks Screaming Higher; 10-Year at 1.71%

This was different.

For a change, good news - an increase of 195,000 jobs in June, according to the monthly BLS non-farm payroll survey - was good news.

Interest rates, on the other hand, took the matter more seriously, with the 10-year note bobbing up to 1.71%, a two-year high, that has some deep thinkers saying 30-year mortgages could reach six percent by the end of the year.

Other optimistic assessments of the economy include unicorns on roller skates and free houses for everyone.

The huge gains notwithstanding, volume was one of the lowest of they year, which, naturally, will be blamed on Friday being part of a four-day weekend. The markets will keep the gains, nonetheless.

Looks like we're off to the races again, with second quarter earnings beginning to trickle in next week, though most forecasters have lowered 2Q GDP estimates to under 1%.

The over-riding theme of the market is that this is a great economy, even if it isn't.

Crude oil is hitting multi-year highs; gold and silver are making multi-year lows.

That makes about as much sense as sending sixth grader to the store for whiskey and smokes.

American markets are the greatest show snow job on earth.

Dow 15,135.84, +147.29 (0.98%)
NASDAQ 3,479.38, +35.71 (1.04%)
S&P 500 1,631.89, +16.48 (1.02%)
NYSE Composite 9,214.17, +79.09 (0.87%)
NASDAQ Volume 1,205,887,125
NYSE Volume 2,960,337,250
Combined NYSE & NASDAQ Advance - Decline: 3937-2511
Combined NYSE & NASDAQ New highs - New lows: 493-112
WTI crude oil: 103.22, +1.98
Gold: 1,212.70, -39.20
Silver: 18.74, -0.964

A Buy the Dip Ramp Job

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

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