Roughly 2:15 pm EDT, all of the major indices in the US began selling off, apparently for no reason.
Probably more to the point is that the Dow Jones Industrial Average poked above the magical and mysterious 18,000 mark a few times during the session, but could not sustain a rally beyond it.
As has been often suggested and sometimes proven, if the stock market is made up more of psychology than fundamental reality, 18,000 is a price too far to pay for the Dow, even for the most bullish bulls in the china shop that is the NYSE and the NASDAQ.
In any case, stocks closed well off their highs and only a little closer to all-time highs, last seen more than a year ago.
This doesn't appear to be a positive sign for stocks; the truth is that stocks are selling at historically high valuations, a condition that normally precedes a sharp selloff. With the Fed heavily "invested" in stocks, today's sudden reversal of fortune does not bode well, either for the Fed's monetary gimmickry nor for rate increases any time this year.
Those who believe that stocks are the only game in town - and, there's an acronym for that: TINA (There Is No Alternative) - hang on to your hats, gents. The drop may be sudden and deep.
Ouch! That Might Leave A Mark:
S&P 500: 2,112.13, +2.72 (0.13%)
Dow: 17,938.28, +17.95 (0.10%)
NASDAQ: 4,961.75, -6.96 (0.14%)
Crude Oil 50.38 +0.04% Gold 1,247.30 +0.02% EUR/USD 1.1358 +0.04% 10-Yr Bond 1.71 -0.58% Corn 427.00 -0.06% Copper 2.05 +0.17% Silver 16.41 +0.07% Natural Gas 2.86 +1.82% Russell 2000 1,179.97 +0.26% VIX 14.05 +2.93% BATS 1000 20,677.17 0.00% GBP/USD 1.4540 +0.02% USD/JPY 107.3025 -0.03%
Tuesday, June 7, 2016
Monday, June 6, 2016
Janet Yellen And The Fed Are Dangerous To Your Well-Being
Apologies for the blaring headline, but this is getting a bit ridiculous. Truthfully, the headline suggested by our ace writer, Fearless Rick, had a definite Donald Trump tone to it, so it was scrapped in favor of the watered-down version.
For seven years - since the great collapse of 2008-09 - we've been listening to the babble coming out of the mouths of various Federal Reserve governors, and none of it was believable nor helpful. The US economy is circling the toilet drain, and various economies around the globe have already been flushed down the sinkhole of fetid monetary policy.
Here is just one quote from Janet Yellen in her address to the World Affairs Council (another bunch of clueless monetarists) that speaks volumes about what she knows and doesn't know:
If Mrs. Yellen would care to elaborate on just what those positive forces could be, it's expected that almost nothing would come out of her mouth, because she's doing what she does best, spout nonsense, in the best tradition of the Maestro himself, the venerable former Fed Chairman, Alan Greenspan. In all honesty, just what positive forces are there supporting employment growth after last week's disastrous non-farm payroll report for May, in which the US economy created a paltry 38,000 jobs when 164,000 were expected.
Additionally, Chair Yellen believes inflation is good for the economy, when most people in the real world would like to see some softening of prices and/or an increase in their wages. On the one hand, deflation in consumer prices stretches one's money; on the other, wage hikes usually occur when the economy is growing robustly. Since Americans can't have both at once, it is supposed that we'll get the former, and like it.
Naturally, the bozos on Wall Street took all of it in stride and just bought more overpriced stocks:
S&P 500: 2,109.41, +10.28 (0.49%)
Dow: 17,920.33, +113.27 (0.64%)
NASDAQ: 4,968.71, +26.20 (0.53%)
Crude Oil 49.69 +2.20% Gold 1,247.70 +0.39% EUR/USD 1.1362 -0.02% 10-Yr Bond 1.72 +1.12% Corn 426.75 +2.03% Copper 2.12 +0.31% Silver 16.49 +0.73% Natural Gas 2.81 +1.41% Russell 2000 1,176.62 +1.07% VIX 13.61 +1.04% BATS 1000 20,677.17 0.00% GBP/USD 1.4455 -0.14% USD/JPY 107.6200 +1.10%
For seven years - since the great collapse of 2008-09 - we've been listening to the babble coming out of the mouths of various Federal Reserve governors, and none of it was believable nor helpful. The US economy is circling the toilet drain, and various economies around the globe have already been flushed down the sinkhole of fetid monetary policy.
Here is just one quote from Janet Yellen in her address to the World Affairs Council (another bunch of clueless monetarists) that speaks volumes about what she knows and doesn't know:
I see good reason to expect that the positive forces supporting employment growth and higher inflation will continue to outweigh the negative ones.
If Mrs. Yellen would care to elaborate on just what those positive forces could be, it's expected that almost nothing would come out of her mouth, because she's doing what she does best, spout nonsense, in the best tradition of the Maestro himself, the venerable former Fed Chairman, Alan Greenspan. In all honesty, just what positive forces are there supporting employment growth after last week's disastrous non-farm payroll report for May, in which the US economy created a paltry 38,000 jobs when 164,000 were expected.
Additionally, Chair Yellen believes inflation is good for the economy, when most people in the real world would like to see some softening of prices and/or an increase in their wages. On the one hand, deflation in consumer prices stretches one's money; on the other, wage hikes usually occur when the economy is growing robustly. Since Americans can't have both at once, it is supposed that we'll get the former, and like it.
Naturally, the bozos on Wall Street took all of it in stride and just bought more overpriced stocks:
S&P 500: 2,109.41, +10.28 (0.49%)
Dow: 17,920.33, +113.27 (0.64%)
NASDAQ: 4,968.71, +26.20 (0.53%)
Crude Oil 49.69 +2.20% Gold 1,247.70 +0.39% EUR/USD 1.1362 -0.02% 10-Yr Bond 1.72 +1.12% Corn 426.75 +2.03% Copper 2.12 +0.31% Silver 16.49 +0.73% Natural Gas 2.81 +1.41% Russell 2000 1,176.62 +1.07% VIX 13.61 +1.04% BATS 1000 20,677.17 0.00% GBP/USD 1.4455 -0.14% USD/JPY 107.6200 +1.10%
Saturday, June 4, 2016
Weak Jobs Number; Worst In Six Years Rattles Market
At the end of the day, the weakest jobs number since 2010 didn't deter stock traders much, though the damage was more severe earlier in the session, another carbon copy of the previous two, with a deep drop at the open, followed by relentless pumping towards the positive.
While Friday's effort left much to be desired, it has now become all-too-obvious that there is no such thing as a fair and open market in US stocks, especially in the face of negative economic data. The federal government and agents of the Fed are adamant about painting a rosy picture of the economy, even though the metrics - especially manufacturing and non-farm payrolls this week - are using a strikingly different palette.
The 38,000 new jobs created in May, as reported by the BLS, was miles below the consensus estimate of 164,000 and gives the Fed much more thinking material as concerns a rate hike, which now appears to be off the table for June, at the very least.
What the number suggests is that despite all the howls from the president, his advisors and others on TV, the economy is in a precarious state, not one in which overheating is even a remote possibility. This would be no time to raise interest rates.
While stocks held their own during a tumultuous week, Friday saw gold and silver rally back, perhaps an indication that all is really not well in the kingdom of Obama.
On The Week:
Dow: -66.16, (-0.37%)
S&P 500: +0.07 (0.00)
NASDAQ: +9.01 (+0.18)
For the Day:
S&P 500: 2,099.13, -6.13 (0.29%)
Dow: 17,807.06, -31.50 (0.18%)
NASDAQ: 4,942.52, -28.85 (0.58%)
Crude Oil 48.90 -0.55% Gold 1,246.50 +2.80% EUR/USD 1.1366 0.00% 10-Yr Bond 1.70 -5.91% Corn 418.25 +0.72% Copper 2.12 +2.42% Silver 16.44 +2.59% Natural Gas 2.76 -0.54% Russell 2000 1,164.14 -0.55% VIX 13.47 -1.17% BATS 1000 20,677.17 0.00% GBP/USD 1.4515 0.00% USD/JPY 106.5450 0.00%
While Friday's effort left much to be desired, it has now become all-too-obvious that there is no such thing as a fair and open market in US stocks, especially in the face of negative economic data. The federal government and agents of the Fed are adamant about painting a rosy picture of the economy, even though the metrics - especially manufacturing and non-farm payrolls this week - are using a strikingly different palette.
The 38,000 new jobs created in May, as reported by the BLS, was miles below the consensus estimate of 164,000 and gives the Fed much more thinking material as concerns a rate hike, which now appears to be off the table for June, at the very least.
What the number suggests is that despite all the howls from the president, his advisors and others on TV, the economy is in a precarious state, not one in which overheating is even a remote possibility. This would be no time to raise interest rates.
While stocks held their own during a tumultuous week, Friday saw gold and silver rally back, perhaps an indication that all is really not well in the kingdom of Obama.
On The Week:
Dow: -66.16, (-0.37%)
S&P 500: +0.07 (0.00)
NASDAQ: +9.01 (+0.18)
For the Day:
S&P 500: 2,099.13, -6.13 (0.29%)
Dow: 17,807.06, -31.50 (0.18%)
NASDAQ: 4,942.52, -28.85 (0.58%)
Crude Oil 48.90 -0.55% Gold 1,246.50 +2.80% EUR/USD 1.1366 0.00% 10-Yr Bond 1.70 -5.91% Corn 418.25 +0.72% Copper 2.12 +2.42% Silver 16.44 +2.59% Natural Gas 2.76 -0.54% Russell 2000 1,164.14 -0.55% VIX 13.47 -1.17% BATS 1000 20,677.17 0.00% GBP/USD 1.4515 0.00% USD/JPY 106.5450 0.00%
Thursday, June 2, 2016
Wealth Building Suggestions In The Age Of Idiocy
Here are some pretty simple ideas for building and preserving wealth. When it comes to debt, not all is bad, though excessive debt is a non-starter for most people. Manage debt wisely. Any business will tell you they needed a loan or an equity partner to make money; people aren't very different.
Here are a few suggestions:
1. Buy silver (dollar cost average; buy a certain amount, be it $20 or $2000, per month, regardless of price.
2. Hide silver (self-explanatory) and don't touch it. This is your secret stash, outside the govenment's hands.
3. Find a business you can operate from home, even if it's a little more than just a hobby. Deduct all allowable expenses. I've been telling people to do this for years and the number who have listened and done it approaches ZERO. The tax code makes it easy to deduct substantial portions of your expenses.
4. Read "The Richest Man In Babylon." Follow the book's advice. Here's's a PDF online.
5. Never buy prepared foods at a grocery. Total junk, and a huge ripoff. Cook meals at home.
6. Have a garden. Even a 6x6 garden can produce a significant amount of produce.
7. Never stop learning. Knowledge is power.
8. Spend money like you don't have much. Always ask for a discount or deal.
9. Never, ever hire an investment advisor. If you think you don't know enough about investing, see #7 and educate yourself. The fact that you are reading this post makes you a candidate for being your own investment advisor and money manager.
10. Be a Boy Scout. Their motto is "Be Prepared."
11. Never panic, in either buying or selling situations. Trust your gut.
There are many more...
As far as the markets are concerned, Thursday was a repeat performance (by agents of central bankers) of Wednesday, with early losses rapidly erased and the major averages making a diagonal line from lower left to upper right on the charts.
Truly disturbing behavior from some exceptionally disturbed people.
Viola!
S&P 500: 2,105.26, +5.93 (0.28%)
Dow: 17,838.56, +48.89 (0.27%)
NASDAQ: 4,971.36, +19.11 (0.39%)
Crude Oil 49.15 -0.04% Gold 1,213.10 +0.04% EUR/USD 1.1149 -0.04% 10-Yr Bond 1.81 -1.90% Corn 414.75 -0.12% Copper 2.07 +0.17% Silver 16.00 -0.16% Natural Gas 2.78 0.00% Russell 2000 1,170.58 +0.65% VIX 13.63 -4.01% BATS 1000 20,677.17 0.00% GBP/USD 1.4405 -0.10% USD/JPY 108.9500 +0.08%
Here are a few suggestions:
1. Buy silver (dollar cost average; buy a certain amount, be it $20 or $2000, per month, regardless of price.
2. Hide silver (self-explanatory) and don't touch it. This is your secret stash, outside the govenment's hands.
3. Find a business you can operate from home, even if it's a little more than just a hobby. Deduct all allowable expenses. I've been telling people to do this for years and the number who have listened and done it approaches ZERO. The tax code makes it easy to deduct substantial portions of your expenses.
4. Read "The Richest Man In Babylon." Follow the book's advice. Here's's a PDF online.
5. Never buy prepared foods at a grocery. Total junk, and a huge ripoff. Cook meals at home.
6. Have a garden. Even a 6x6 garden can produce a significant amount of produce.
7. Never stop learning. Knowledge is power.
8. Spend money like you don't have much. Always ask for a discount or deal.
9. Never, ever hire an investment advisor. If you think you don't know enough about investing, see #7 and educate yourself. The fact that you are reading this post makes you a candidate for being your own investment advisor and money manager.
10. Be a Boy Scout. Their motto is "Be Prepared."
11. Never panic, in either buying or selling situations. Trust your gut.
There are many more...
As far as the markets are concerned, Thursday was a repeat performance (by agents of central bankers) of Wednesday, with early losses rapidly erased and the major averages making a diagonal line from lower left to upper right on the charts.
Truly disturbing behavior from some exceptionally disturbed people.
Viola!
S&P 500: 2,105.26, +5.93 (0.28%)
Dow: 17,838.56, +48.89 (0.27%)
NASDAQ: 4,971.36, +19.11 (0.39%)
Crude Oil 49.15 -0.04% Gold 1,213.10 +0.04% EUR/USD 1.1149 -0.04% 10-Yr Bond 1.81 -1.90% Corn 414.75 -0.12% Copper 2.07 +0.17% Silver 16.00 -0.16% Natural Gas 2.78 0.00% Russell 2000 1,170.58 +0.65% VIX 13.63 -4.01% BATS 1000 20,677.17 0.00% GBP/USD 1.4405 -0.10% USD/JPY 108.9500 +0.08%
Wednesday, June 1, 2016
Suspicious Behavior In Stocks Leads To Belief That Fed Is Buying
After dismal data out of Japan and some troubling manufacturing numbers in the US, stocks opened sharply lower on Wednesday, reversing the short-covering faux rally into Tuesday's close.
But, the trauma was short-lived, ending abruptly, absolutely minutes after the open. Some people surely got caught short at the wrong moment, thinking, wrongly, that the era of central bank noise and confusion was about to meet a fitting end. Stocks continued an inexorable ascent throughout the day, based on nothing other than front-running computer bots and anti-competitive algos run by criminal banks.
Of course, no such thing would happen. The signs of a collapsing global economy have been with us for the past seven or eight years now, but somehow, stocks continue to pace along, and lately, they just fluctuate in a narrow zone.
This trading conundrum - in which outflows from equities has been ongoing for seventeen weeks - has to be the work of the central bank, or banks, acting in concert to keep asset prices from collapsing to where they might belong, about 40-=0% lower than where they currently reside.
Since the Bank of Japan has been spotted owning a hefty percentage of the biggest companies on the Nikkei, it shouldn't surprise anybody that the Federal Reserve is working behind the scenes to keep US equities floating on vapors.
It's a disgusting, completely inappropriate condition. The Fed is engaged in the worst form of market manipulation, in secret, buying selectively to keep prices from collapsing, in a most offensive manner.
While Money Daily considers this kind of activity to be nothing short of criminal behavior at best and immoral destruction of the whole economy at worst, others are entitled to their opinions, such as the corrupt Keyenesians and insiders on Capitol Hill who profit handsomely from Fed interventions.
Their opinions are typically based on nothing other than self-interest, greed and keeping their jobs. They should all be out on the street. Hope springs eternal.
Maybe by November.
Oh, Happy Day!
S&P 500: 2,099.33, +2.37 (0.11%)
Dow: 17,789.67, +2.47 (0.01%)
NASDAQ: 4,952.25, +4.20 (0.08%)
Crude Oil 48.91 -0.39% Gold 1,215.20 -0.19% EUR/USD 1.1188 +0.02% 10-Yr Bond 1.85 +0.65% Corn 412.00 +1.79% Copper 2.07 -1.07% Silver 15.98 -0.12% Natural Gas 2.74 +0.84% Russell 2000 1,163.04 +0.71% VIX 14.20 +0.07% BATS 1000 20,677.17 0.00% GBP/USD 1.4411 -0.01% USD/JPY 109.4650 -0.03%
But, the trauma was short-lived, ending abruptly, absolutely minutes after the open. Some people surely got caught short at the wrong moment, thinking, wrongly, that the era of central bank noise and confusion was about to meet a fitting end. Stocks continued an inexorable ascent throughout the day, based on nothing other than front-running computer bots and anti-competitive algos run by criminal banks.
Of course, no such thing would happen. The signs of a collapsing global economy have been with us for the past seven or eight years now, but somehow, stocks continue to pace along, and lately, they just fluctuate in a narrow zone.
This trading conundrum - in which outflows from equities has been ongoing for seventeen weeks - has to be the work of the central bank, or banks, acting in concert to keep asset prices from collapsing to where they might belong, about 40-=0% lower than where they currently reside.
Since the Bank of Japan has been spotted owning a hefty percentage of the biggest companies on the Nikkei, it shouldn't surprise anybody that the Federal Reserve is working behind the scenes to keep US equities floating on vapors.
It's a disgusting, completely inappropriate condition. The Fed is engaged in the worst form of market manipulation, in secret, buying selectively to keep prices from collapsing, in a most offensive manner.
While Money Daily considers this kind of activity to be nothing short of criminal behavior at best and immoral destruction of the whole economy at worst, others are entitled to their opinions, such as the corrupt Keyenesians and insiders on Capitol Hill who profit handsomely from Fed interventions.
Their opinions are typically based on nothing other than self-interest, greed and keeping their jobs. They should all be out on the street. Hope springs eternal.
Maybe by November.
Oh, Happy Day!
S&P 500: 2,099.33, +2.37 (0.11%)
Dow: 17,789.67, +2.47 (0.01%)
NASDAQ: 4,952.25, +4.20 (0.08%)
Crude Oil 48.91 -0.39% Gold 1,215.20 -0.19% EUR/USD 1.1188 +0.02% 10-Yr Bond 1.85 +0.65% Corn 412.00 +1.79% Copper 2.07 -1.07% Silver 15.98 -0.12% Natural Gas 2.74 +0.84% Russell 2000 1,163.04 +0.71% VIX 14.20 +0.07% BATS 1000 20,677.17 0.00% GBP/USD 1.4411 -0.01% USD/JPY 109.4650 -0.03%
Subscribe to:
Posts (Atom)
Posts
