Noting the popularity of the new smart phone game, "Pokemon Go," and its coincident release with fresh all-time highs on the S&P 500 and Dow Industrial Average, it can be safely assured that the civilized nations of planet earth have entered the final stage of self-destruction, in which morons - not zombies - take over the planet.
In some ways, the process of moron-izing the population is already well underway.
We are led to believe that voting for representatives in government actually is an expression of our freedom within a working democracy. When these representatives, from the president and members of congress on down to the local code enforcement officer, are proven to be solely interested in either re-election, amassing a fortune, or advancing their career paths and not working in the public interest we are called cynical or pessimistic.
Year after year, school budgets are increased while the quality of education is diminished. Normally intelligent-looking people vote to pay more in taxes to support a system that fails on a regular basis.
We pay good money for cable TV or other entertainment delivered to our homes or workplaces to watch people who are vastly overpaid do stupid things or play sports.
Investment professionals routinely lose money on investments with our hard-earned money and yet are hailed as experts within the financial community.
The vast majority of people can't raise a decent garden, hammer a nail or turn a screw. Still, they all complain that the infrastructure of the country is falling apart.
These are but a few examples of the lunacy that has nearly completely gripped our nation. The truth is that the people running things - politicians, bankers, CEOs - aren't all that bright. In fact, most of them are morons, versed only in maximizing their incomes, pensions and perks, but we follow them and aren't too overly distraught that they make 50-70 or 500 times what we do.
We should be, but it's getting a little late in the game to do anything about it. Besides, most of your contemporaries are morons with their noses stuck on their "smart" phones, playing the latest game app.
What can be done? Plenty.
Stand up, do something you haven't tried. Fix something that's broken. Pay less for things you usually buy, or just change your buying habits a little. Save the money, a little at a time, which will grow over time into something more substantial.
Stop voting. Period. Just stop. It only encourages bad behavior by the winners and losers alike.
Spending on frivolities is maybe a favorite of yours. As you grow older, you'll discover that spending money - often money you don't already have (credit) - is a behavior to be avoided. Spending on things you don't need, but only want, can be destructive to your finances.
A way to combat the incessant need to spend, foisted upon us by the media, commerce and ad industry, is to institute no-spend days. This can start as an experiment, as in a "No-Spend Sunday," and expanded to multiple days. It's pretty easy to do. Just buy what you'll need for a few days, and then don't spend any money over the next few.
(I'm currently in the midst of a three-out-of-four no-spend days. After a successful no-spend Saturday and Sunday, I realized I needed beer and ice on Monday, so I reluctantly spent $12.76. Today, Tuesday is a no-spend no-brainer).
It's a rewarding habit, as you end up with more cash in your pocket and a sense of accomplishment, when you actually accomplished little, other than not buying anything.
But, of course, morons won't understand this simple concept.
Until next time,
-- Fearless Rick
Today's markets were horribly dull, likely the result of central banks doing most of the trading over the past few weeks, months, years(?). They decided to not goose the markets any more, since they got over the desired all-time highs, for now. That should work until the next financial non-event, like Brexit, scares out the weak hands or causes some Alphas in the herd to take profits.
The S&P traded in a 10-point range over the entire session; the Dow, 75 points; the NASDAQ range was 33 points.
Whoopie!
At the close:
Dow Jones Industrial Average
18,372.12, +24.45 (0.13%)
NASDAQ Composite
5,005.73, -17.09 (-0.34%)
S&P 500
2,152.43, +0.29 (0.01%)
NYSE Composite
10,734.16, +7.38 (0.07%)
Wednesday, July 13, 2016
Tuesday, July 12, 2016
How Now, Dow? New All-Time Highs on DJIA, SPX
The Dow Jones Industrial Average (DJIA) added 120.74 points, or 0.7%, to close at 18,347.67, making a fresh closing all-time high, surpassing the previous closing high when it finished at 18,312.39 on May 19, 2015. The blue-chip gauge briefly hit an intra-day top at 18,371.95.
Additionally, the S&P tacked on nearly 15 points, setting another record closing high.
Continued strength in the markets may be a sow's ear, however, since the Fed might choose to tap on the brakes with a rate hike if such outlandish behavior continues. On the other hand, since the Fed is a major buyer of equities these days, the FOMC may just back away from the rate hike mania and allow markets to simply go where they will with super low interest rates backstopped by a shaky core economy and a presidential election.
There has been no sense in fighting the Fed, since they have unlimited power to print as much as they like, though the natural questions have to be "where will it end, when does it end, how does it end?"
Nobody has the answers, and nearly the same amount is asking. There's too much money sloshing around for anybody to take a step back and take a critical view of fundamental valuations, which are becoming expensive.
Signals have been shown by the markets, but, as has happened throughout history, the signals are being ignored as long as the champagne and money are flowing.
S&P 500: 2,152.14, +14.98 (0.70%)
Dow: 18,347.67, +120.74 (0.66%)
NASDAQ: 5,022.82, +34.18 (0.69%)
Additionally, the S&P tacked on nearly 15 points, setting another record closing high.
Continued strength in the markets may be a sow's ear, however, since the Fed might choose to tap on the brakes with a rate hike if such outlandish behavior continues. On the other hand, since the Fed is a major buyer of equities these days, the FOMC may just back away from the rate hike mania and allow markets to simply go where they will with super low interest rates backstopped by a shaky core economy and a presidential election.
There has been no sense in fighting the Fed, since they have unlimited power to print as much as they like, though the natural questions have to be "where will it end, when does it end, how does it end?"
Nobody has the answers, and nearly the same amount is asking. There's too much money sloshing around for anybody to take a step back and take a critical view of fundamental valuations, which are becoming expensive.
Signals have been shown by the markets, but, as has happened throughout history, the signals are being ignored as long as the champagne and money are flowing.
S&P 500: 2,152.14, +14.98 (0.70%)
Dow: 18,347.67, +120.74 (0.66%)
NASDAQ: 5,022.82, +34.18 (0.69%)
Monday, July 11, 2016
No Fear: S&P 500 Makes New All-Time High
Words cannot express...
Monday Mayhem:
S&P 500: 2,137.16, +7.26 (0.34%)
Dow 30: 18,226.93, +80.19 (0.44%)
NASDAQ: 4,988.64, +31.88 (0.64%)
Monday Mayhem:
S&P 500: 2,137.16, +7.26 (0.34%)
Dow 30: 18,226.93, +80.19 (0.44%)
NASDAQ: 4,988.64, +31.88 (0.64%)
Sunday, July 10, 2016
SPX Near All-Time Highs On June Jobs Euphoria
On May 20, 2015, the S&P 500 index (SPX) reached an all-time intra-day high of 2,134.72. The following session, May 21, it set a closing record at 2,130.82.
This Friday, the S&P closed at 2,190.90, settling off the day's high of 2,131.71, so, no records were set in the first full trading week of July (when nobody's paying particular attention), but the major indices are now poised to run beyond their previous highs, set more than a year ago.
Thus, the banking and global finance cartel - which is in complete and unbreakable control of all "trading" markets - has waived any consideration that the third-longest equity bull market in the history of US stock markets was coming to an end.
Bears, those sadly depressed members of the pessimism society (this blog included) are never going to be satisfied it seems. Drops on the major indices of 10% or more (corrections) are not tolerated. 20% declines - bear markets by definition - are not open for discussion within the megalithic construct of global central bank monetarism.
Expect new all-time highs on the S&P promptly Monday morning, with the Dow soon to follow (all time highs of 18,351.36 intra-day and 18,312.39 closing, both on May 19, 2015). The NASDAQ has a bit further to travel, having made its all-time closing high of 5,153.97 on June 22, 2015, reaching its zenith two days later with an intra-day value of 5,164.36.
Whether these prices and averages are justified by fundamental measures of valuation is debatable. By many measures stocks are overpriced. The trading prices of some of the more popular stocks - especially those focused in the technology area (Facebook, Google, Amazon, Apple to name a few) - currently trade at nose-bleed valuations.
According to the financial press, what prompted the sudden jerk higher of US stock markets was Friday's non-farm payroll figures from June.
The Bureau of Labor Statistics (BLS) said non-farm payrolls rose to a seasonally adjusted 287K, from 11K in May, that figure revised lower, from 38K.
Analysts had expected U.S. non-farm payrolls to rise 175K last month, so the surprise factor was enormous. Muddying the waters beyond the mystifying May numbers as compared to June - the largest net gain in eight months, is that the BLS numbers are largely massaged, maneuvered, and mangled into whatever pretzel-logical outcome is desired at the moment.
In a word, the BLS numbers are untrustworthy.
David Rosenberg suggests that the month of June did not in fact show a massive gain, but employment actually declined by 119,000 during the month.
Here is another article (from February 2016) that breaks down the faulty, misleading methodology employed by the BLS.
David Stockman opines that the monthly BLS survey is mostly noise and needs to be veiwed over longer periods in order to offer convincing trends and that the May and June tallies, taken together, amount to nothing more than statistical numbness.
Effectively, the BLS survey figures move markets as the algos respond entirely to the headlines, which were out-of-the-park awesome in June. The details were more nuanced, but such does not have influence on stocks.
In any case, since, the Brexit vote, central banks and central planners have returned in force to control the narrative, which, in their view, must continue to be nothing but positive.
For an alternative view, look at the response of gold, silver and especially, government bonds, the 10-year note and 30-year bond in particular, both of which continued to make all-time lows this week.
For the week:
Dow: +197.37 (+1.10%)
S&P 500: +26.95 (+1.28%)
NASDAQ: +94.19 (+1.94%)
Friday's Fantasy:
S&P 500: 2,129.90, +32.00 (1.53%)
Dow: 18,146.74, +250.86 (1.40%)
NASDAQ: 4,956.76, +79.95 (1.64%)
Crude Oil 45.12 -0.04% Gold 1,367.40 +0.39% EUR/USD 1.1051 -0.09% 10-Yr Bond 1.37 -1.51% Corn 361.25 +3.66% Copper 2.12 +0.02% Silver 20.35 +2.58% Natural Gas 2.82 +1.44% Russell 2000 1,177.36 +2.40% VIX 13.20 -10.57% BATS 1000 20,677.17 0.00% GBP/USD 1.2952 +0.30% USD/JPY 100.4600 -0.27%
This Friday, the S&P closed at 2,190.90, settling off the day's high of 2,131.71, so, no records were set in the first full trading week of July (when nobody's paying particular attention), but the major indices are now poised to run beyond their previous highs, set more than a year ago.
Thus, the banking and global finance cartel - which is in complete and unbreakable control of all "trading" markets - has waived any consideration that the third-longest equity bull market in the history of US stock markets was coming to an end.
Bears, those sadly depressed members of the pessimism society (this blog included) are never going to be satisfied it seems. Drops on the major indices of 10% or more (corrections) are not tolerated. 20% declines - bear markets by definition - are not open for discussion within the megalithic construct of global central bank monetarism.
Expect new all-time highs on the S&P promptly Monday morning, with the Dow soon to follow (all time highs of 18,351.36 intra-day and 18,312.39 closing, both on May 19, 2015). The NASDAQ has a bit further to travel, having made its all-time closing high of 5,153.97 on June 22, 2015, reaching its zenith two days later with an intra-day value of 5,164.36.
Whether these prices and averages are justified by fundamental measures of valuation is debatable. By many measures stocks are overpriced. The trading prices of some of the more popular stocks - especially those focused in the technology area (Facebook, Google, Amazon, Apple to name a few) - currently trade at nose-bleed valuations.
According to the financial press, what prompted the sudden jerk higher of US stock markets was Friday's non-farm payroll figures from June.
The Bureau of Labor Statistics (BLS) said non-farm payrolls rose to a seasonally adjusted 287K, from 11K in May, that figure revised lower, from 38K.
Analysts had expected U.S. non-farm payrolls to rise 175K last month, so the surprise factor was enormous. Muddying the waters beyond the mystifying May numbers as compared to June - the largest net gain in eight months, is that the BLS numbers are largely massaged, maneuvered, and mangled into whatever pretzel-logical outcome is desired at the moment.
In a word, the BLS numbers are untrustworthy.
David Rosenberg suggests that the month of June did not in fact show a massive gain, but employment actually declined by 119,000 during the month.
When the Household survey is put on the same comparable footing as the payroll series (the payroll and population-concept adjusted number), employment fell 119,000 in June — again calling into question the veracity of the actual payroll report — and is down 517,000 through this span. The six-month trend has dipped below the zero-line and this has happened but two other times during this seven-year expansion.
Here is another article (from February 2016) that breaks down the faulty, misleading methodology employed by the BLS.
David Stockman opines that the monthly BLS survey is mostly noise and needs to be veiwed over longer periods in order to offer convincing trends and that the May and June tallies, taken together, amount to nothing more than statistical numbness.
Effectively, the BLS survey figures move markets as the algos respond entirely to the headlines, which were out-of-the-park awesome in June. The details were more nuanced, but such does not have influence on stocks.
In any case, since, the Brexit vote, central banks and central planners have returned in force to control the narrative, which, in their view, must continue to be nothing but positive.
For an alternative view, look at the response of gold, silver and especially, government bonds, the 10-year note and 30-year bond in particular, both of which continued to make all-time lows this week.
For the week:
Dow: +197.37 (+1.10%)
S&P 500: +26.95 (+1.28%)
NASDAQ: +94.19 (+1.94%)
Friday's Fantasy:
S&P 500: 2,129.90, +32.00 (1.53%)
Dow: 18,146.74, +250.86 (1.40%)
NASDAQ: 4,956.76, +79.95 (1.64%)
Crude Oil 45.12 -0.04% Gold 1,367.40 +0.39% EUR/USD 1.1051 -0.09% 10-Yr Bond 1.37 -1.51% Corn 361.25 +3.66% Copper 2.12 +0.02% Silver 20.35 +2.58% Natural Gas 2.82 +1.44% Russell 2000 1,177.36 +2.40% VIX 13.20 -10.57% BATS 1000 20,677.17 0.00% GBP/USD 1.2952 +0.30% USD/JPY 100.4600 -0.27%
Thursday, July 7, 2016
Banker Cartel Exercising Control Post-Brexit
Editor's Note: Summer is in full swing, and publisher, Fearless Rick, is busy working on his tan, among other various duties, so Money Daily may not be quite so daily for the next six to eight weeks. We urge all readers to get out and enjoy the good weather.
Markets have calmed considerably since the craziness of the past two weeks. Over the past two trading sessions (Wednesday and Thursday), US exchanges were very slightly elevated, but still stuck in the range they've been assigned by the banking cartel since mid-March.
Friday's non-farm payroll report for June is due out at 8:30 am EDT, though it will likely have little effect on trading as Wall Street generally slumbers through summer.
Gold and silver received their usual smack-downs, but there's little doubt that more and more people are looking for safety in precious metals and other non-financial assets.
Thursday's Tremblings:
S&P 500: 2,097.90, -1.83 (0.09%)
Dow: 17,895.88, -22.74 (0.13%)
NASDAQ: 4,876.81, +17.65 (0.36%)
Crude Oil 45.19 -4.72% Gold 1,361.00 -0.45% EUR/USD 1.1064 -0.27% 10-Yr Bond 1.39 +0.14% Corn 348.50 +0.07% Copper 2.12 -1.44% Silver 19.72 -2.39% Natural Gas 2.76 -0.83% Russell 2000 1,149.76 +0.21% VIX 14.76 -1.34% BATS 1000 20,677.17 0.00% GBP/USD 1.2910 -0.13% USD/JPY 100.7710 -0.60%
Markets have calmed considerably since the craziness of the past two weeks. Over the past two trading sessions (Wednesday and Thursday), US exchanges were very slightly elevated, but still stuck in the range they've been assigned by the banking cartel since mid-March.
Friday's non-farm payroll report for June is due out at 8:30 am EDT, though it will likely have little effect on trading as Wall Street generally slumbers through summer.
Gold and silver received their usual smack-downs, but there's little doubt that more and more people are looking for safety in precious metals and other non-financial assets.
Thursday's Tremblings:
S&P 500: 2,097.90, -1.83 (0.09%)
Dow: 17,895.88, -22.74 (0.13%)
NASDAQ: 4,876.81, +17.65 (0.36%)
Crude Oil 45.19 -4.72% Gold 1,361.00 -0.45% EUR/USD 1.1064 -0.27% 10-Yr Bond 1.39 +0.14% Corn 348.50 +0.07% Copper 2.12 -1.44% Silver 19.72 -2.39% Natural Gas 2.76 -0.83% Russell 2000 1,149.76 +0.21% VIX 14.76 -1.34% BATS 1000 20,677.17 0.00% GBP/USD 1.2910 -0.13% USD/JPY 100.7710 -0.60%
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