Amid political rhetoric and slumbering stocks, the major indices managed to work themselves low in the final "unofficial" week of summer.
With the advent of the Labor Day holiday, investors thought better of yesterday's euphoric rally and sold off in get-away fashion.
Dow 11,543.96 -171.22; NASDAQ 2,367.52 -44.12; S&P 500 1,282.84 -17.84; NYSE Composite 8,382.10 -84.02
For the week, the Dow closed 85 points lower, the NASDAQ lopped off 47, the S&P shed 10, while the NYSE Composite was virtually unchanged, adding 9 points.
It truly was a forgettable week in the financial markets. Things should get back to some semblance of normalcy in September. Over the past week, volume was a little better than half of what it normally is. Friday's NYSE volume was the lowest of the year.
A couple of economic reports told the real story of the US economy on Friday. Personal income fell in July, as did consumer spending. No real surprise there, just confirmation of what everybody already knew. Consumers are generally tapped out and doing more saving and conserving than spending.
On the day, declining issues trounced advancers, 3906-2277. New lows nearly doubled new highs, 126-65.
Oil, despite some volatility concerning Hurricane Gustav's effect on Gulf oil production, oil finished 13 cents lower, at $115.46. Gold lost $2.00, to $835.20 and silver was unchanged at $13.71
NYSE Volume 750,671,000
NASDAQ Volume 1,583,494,000
Friday, August 29, 2008
Thursday, August 28, 2008
Sliding Into the Fall
Stocks traded at new volume lows for the year for the fifth straight session on Wednesday. Volume has diminished every day leading up to the Labor Day holiday weekend.
It would be wise to assume that this kind of low-volume trading will continue through the end of the week unless there is some kind of surprise world-shaking event, and even that seems to be out of the equation.
Dow 11,502.51 +89.64; NASDAQ 2,382.46 +20.49; S&P 500 1,281.66 +10.15; NYSE Composite 8,349.84 +86.12
Making any kind of serious changes in trading positions at this juncture is also not a good idea. The markets are still slogging through some serious problems and the bottoms reached in July have yet to be retested. There's bound to be at least one more serious downdraft before the market and the overall economy can begin moving forward. Of course, since stocks are a kind of discounting mechanism, they are likely to move well before the rest of the economy, but we don't seem to be there yet.
On the day, advancing issues outperformed losers, 4250-1724. New lows remained in the lead over new highs, 148-60. The relationship of new lows to new highs has become a permanent feature of this market condition. There are just more bad companies than good ones, though surely, some are already below fair value. That's a story for another day, however. Investors are simply content shedding losers and not in a very sprightly, speculative mood.
To almost nobody's surprise, oil gained slightly, up $1.88, to $118.15, in advance of the American holiday. It's somewhat of a bad joke, how the oil companies manage to get the price of fuel up just when everybody is about to use more of it. That feature of the rigged commodity speaks volumes about the stranglehold the five major oil companies have on the world's economies.
Gold was up $5.90, closing at $834.00, but silver fell 11 cents, to $13.57. This little run-up in commodities is probably going to end badly as the downward trendline has yet to be broken, and like stocks, look to be heading down even further.
What is of interest as we drift into fall, is how markets will respond to the change of season and whether volume will improve after the holiday. There are some who believe this lower volume phenomenon is going to hang around a while longer, possibly until the November elections, being that political change may have more to do with the markets than anyone dares believe.
NYSE Volume 820,385,000
NASDAQ Volume 1,570,050,000
It would be wise to assume that this kind of low-volume trading will continue through the end of the week unless there is some kind of surprise world-shaking event, and even that seems to be out of the equation.
Dow 11,502.51 +89.64; NASDAQ 2,382.46 +20.49; S&P 500 1,281.66 +10.15; NYSE Composite 8,349.84 +86.12
Making any kind of serious changes in trading positions at this juncture is also not a good idea. The markets are still slogging through some serious problems and the bottoms reached in July have yet to be retested. There's bound to be at least one more serious downdraft before the market and the overall economy can begin moving forward. Of course, since stocks are a kind of discounting mechanism, they are likely to move well before the rest of the economy, but we don't seem to be there yet.
On the day, advancing issues outperformed losers, 4250-1724. New lows remained in the lead over new highs, 148-60. The relationship of new lows to new highs has become a permanent feature of this market condition. There are just more bad companies than good ones, though surely, some are already below fair value. That's a story for another day, however. Investors are simply content shedding losers and not in a very sprightly, speculative mood.
To almost nobody's surprise, oil gained slightly, up $1.88, to $118.15, in advance of the American holiday. It's somewhat of a bad joke, how the oil companies manage to get the price of fuel up just when everybody is about to use more of it. That feature of the rigged commodity speaks volumes about the stranglehold the five major oil companies have on the world's economies.
Gold was up $5.90, closing at $834.00, but silver fell 11 cents, to $13.57. This little run-up in commodities is probably going to end badly as the downward trendline has yet to be broken, and like stocks, look to be heading down even further.
What is of interest as we drift into fall, is how markets will respond to the change of season and whether volume will improve after the holiday. There are some who believe this lower volume phenomenon is going to hang around a while longer, possibly until the November elections, being that political change may have more to do with the markets than anyone dares believe.
NYSE Volume 820,385,000
NASDAQ Volume 1,570,050,000
Tuesday, August 26, 2008
Markets Dull on Slowest Trading Day of Year
Trading continued at a dawdling pace as the final week of August dwindles down. Following yesterday's spirited selling, investors sat back once more and watched as stocks traded in a narrow range throughout the day.
Volume was even lower than Monday's, the lowest of the year.
What kept stocks from falling even further into the abyss was the general lack of interest in stocks. A reading on consumer confidence, which improved from 51.9 in July to 56.9 in August, mostly on the basis of decreasing gasoline prices, helped offset another horrid housing report.
New home sales, despite a gain of 2.2% in July over June, were down an astonishing 35.3% from last year. Prices for new homes also declined.
The Standard & Poor's/Case-Shiller U.S. National Home Price Index fell by a a record 15.4% during the April-June period, the largest decline ever recorded.
Why didn't stocks continue to fall? Disinterest. Most of the people and institutions who planned sales for this week already had done so by close of business on Monday. The rest of the week is likely to see little in the way of volatility, though that is certain to change following the Labor Day holiday.
Dow 11,412.87 +26.62; NASDAQ 2,361.97 -3.62; S&P 500 1,271.51 +4.67; NYSE Composite 8,263.72 +34.69
The level of trading over the past couple of weeks is not sustainable and there's a quiet but growing concern that trading volumes may not return to the usual robust levels. The reasons are obvious to anyone who's been paying attention to the credit and various financial markets. Investment houses have become very risk-averse and hedge funds have been taking on losses like the Titanic took on water. The big players are just not playing any more. The consequences could be disastrous and the long term damage to our markets could take years to mend.
On the day, advancing issues led decliners, 3642-2528. New lows beat new highs, 220-54.
Oil gained $1.16, to $116.27. Gold gained $2.40, to $828.10, while silver added 20 cents to $13.68.
It really was as dreadfully slow as one can imagine, with little hope for improvement this week.
NYSE Volume 856,300,000
NASDAQ Volume 1,468,464,000
Volume was even lower than Monday's, the lowest of the year.
What kept stocks from falling even further into the abyss was the general lack of interest in stocks. A reading on consumer confidence, which improved from 51.9 in July to 56.9 in August, mostly on the basis of decreasing gasoline prices, helped offset another horrid housing report.
New home sales, despite a gain of 2.2% in July over June, were down an astonishing 35.3% from last year. Prices for new homes also declined.
The Standard & Poor's/Case-Shiller U.S. National Home Price Index fell by a a record 15.4% during the April-June period, the largest decline ever recorded.
Why didn't stocks continue to fall? Disinterest. Most of the people and institutions who planned sales for this week already had done so by close of business on Monday. The rest of the week is likely to see little in the way of volatility, though that is certain to change following the Labor Day holiday.
Dow 11,412.87 +26.62; NASDAQ 2,361.97 -3.62; S&P 500 1,271.51 +4.67; NYSE Composite 8,263.72 +34.69
The level of trading over the past couple of weeks is not sustainable and there's a quiet but growing concern that trading volumes may not return to the usual robust levels. The reasons are obvious to anyone who's been paying attention to the credit and various financial markets. Investment houses have become very risk-averse and hedge funds have been taking on losses like the Titanic took on water. The big players are just not playing any more. The consequences could be disastrous and the long term damage to our markets could take years to mend.
On the day, advancing issues led decliners, 3642-2528. New lows beat new highs, 220-54.
Oil gained $1.16, to $116.27. Gold gained $2.40, to $828.10, while silver added 20 cents to $13.68.
It really was as dreadfully slow as one can imagine, with little hope for improvement this week.
NYSE Volume 856,300,000
NASDAQ Volume 1,468,464,000
Monday, August 25, 2008
Investors Still Not Buying
As we wend our way toward falling leaves and cooler weather, Wall Street seems to have taken the lead with a cold attitude toward stocks and falling prices all around.
Monday began in a somber way. On the lightest volume session of the year, most of the activity involved selling, indiscriminate selling, as all sectors were down more than 1%, led, of course, by the battered financial stocks.
Though there was little in the way of actual news, the mood was as dour as it has been throughout the 1+ year since the initial shock waves of the subprime malaise.
Dow 11,386.25 -241.81; NASDAQ 2,365.59 -49.12; S&P 500 1,266.84 -25.36; NYSE Composite 8,229.03 -144.52
The headline numbers matched the internals. Declining issues overwhelmed advancers, 4959-1394. There were 212 new lows to just 63 new highs. The numbers are so low because there have been more new lows than new highs every day for nearly a year now and those losing stocks are already bottomed out.
With markets overall down roughly 20% from a year ago, a huge number of new lows - in the 500-800 range - would be symptomatic of a more catastrophic downturn.
As it is, stocks are already so battered and beaten, investors so burned, that a good deal of money has already exited US markets, seeking gains on foreign exchanges or in other investment vehicles.
Commodities didn't fare much better. Oil gained 52 cents, to $115.11, though that price was largely a rebounding bounce following Friday's $6+ loss. Gold diminished by $7.80, to $825.70. Silver fell 11 cents to $13.48.
With summer winding down, one would expect low volume, but today's massive loss is troubling. The markets simply do not have any life, any measurable bounce. There is almost a certainty that stocks - in the near term, at least - are going to continue heading lower.
Hang on to your cash. Bank failures and other financial cataclysms are on the way.
NYSE Volume 865,190,000
NASDAQ Volume 1,454,557,000
Monday began in a somber way. On the lightest volume session of the year, most of the activity involved selling, indiscriminate selling, as all sectors were down more than 1%, led, of course, by the battered financial stocks.
Though there was little in the way of actual news, the mood was as dour as it has been throughout the 1+ year since the initial shock waves of the subprime malaise.
Dow 11,386.25 -241.81; NASDAQ 2,365.59 -49.12; S&P 500 1,266.84 -25.36; NYSE Composite 8,229.03 -144.52
The headline numbers matched the internals. Declining issues overwhelmed advancers, 4959-1394. There were 212 new lows to just 63 new highs. The numbers are so low because there have been more new lows than new highs every day for nearly a year now and those losing stocks are already bottomed out.
With markets overall down roughly 20% from a year ago, a huge number of new lows - in the 500-800 range - would be symptomatic of a more catastrophic downturn.
As it is, stocks are already so battered and beaten, investors so burned, that a good deal of money has already exited US markets, seeking gains on foreign exchanges or in other investment vehicles.
Commodities didn't fare much better. Oil gained 52 cents, to $115.11, though that price was largely a rebounding bounce following Friday's $6+ loss. Gold diminished by $7.80, to $825.70. Silver fell 11 cents to $13.48.
With summer winding down, one would expect low volume, but today's massive loss is troubling. The markets simply do not have any life, any measurable bounce. There is almost a certainty that stocks - in the near term, at least - are going to continue heading lower.
Hang on to your cash. Bank failures and other financial cataclysms are on the way.
NYSE Volume 865,190,000
NASDAQ Volume 1,454,557,000
Friday, August 22, 2008
Playing or Being Played?
August has been a month of ups-and-downs with plenty of money sitting on the sidelines. Considering the absurdly low level of participation, via trading volume, one might be under the impression that many professionals have taken the month off.
To get an idea about how ordinary, individual investors feel about manipulation and the lack of regulation, check out this fairly lame article with excellent reader comments on Yahoo's Tech Ticker.
I make mention of the dubious art of market manipulation from time to time because it is not only plausible in today's mega-billion-dollar environment but also probable and proven to have occurred, especially in the case of the President's Working Group on Financial Markets, a/k/a the Plunge Protection Team (PPT).
Toady's gallop ahead may prove instructional.
Dow 11,628.06 +197.85; NASDAQ 2,414.71 +34.33; S&P 500 1,292.19 +14.47; NYSE Composite 8,373.55 +59.41
Lest we forget, the week began with two consecutive days of declines, but it ended with 3 straight gains. Remember, I said yesterday that the week would be of little consequence.
For the week, the Dow Jones Industrials lost a whopping .... wait for it... 31 points. So, we're just about even. It's all good! Crown me genius!
On the day, advancing issues overwhelmed decliners, 4421-1773. New lows defeated new highs, 153-59.
Oil dropped $6.59, to end the week at $114.59. Gold lost $5.50, to $833.50. Silver fell 25 cents to $13.59. Everything seemed to go absolutely nowhere this week.
Volume on the equity markets was the lowest of a very low volume week.
So, are you playing or being played?
NYSE Volume 888,139,000
NASDAQ Volume 1,395,867,000
Substantial Wealth and Riches Creation
The Path of Substantial Wealth and Riches: Your Parents' Influence on Your Finances
substantialincomes.com
While that may explain the low volume to some degree, it also suggests something more sinister: that sparsely-traded markets are more easily manipulated. For instance, regulators, the little pea-brains that they are, already concluded that the overgrown gains in the price of oil earlier this year were simply the result of ordinary supply-and-demand forces. Of course, they came to that conclusion before it was revealed that a few speculators dominate the oil futures trading markets.The Path of Substantial Wealth and Riches: Your Parents' Influence on Your Finances
substantialincomes.com
To get an idea about how ordinary, individual investors feel about manipulation and the lack of regulation, check out this fairly lame article with excellent reader comments on Yahoo's Tech Ticker.
I make mention of the dubious art of market manipulation from time to time because it is not only plausible in today's mega-billion-dollar environment but also probable and proven to have occurred, especially in the case of the President's Working Group on Financial Markets, a/k/a the Plunge Protection Team (PPT).
Toady's gallop ahead may prove instructional.
Dow 11,628.06 +197.85; NASDAQ 2,414.71 +34.33; S&P 500 1,292.19 +14.47; NYSE Composite 8,373.55 +59.41
Lest we forget, the week began with two consecutive days of declines, but it ended with 3 straight gains. Remember, I said yesterday that the week would be of little consequence.
For the week, the Dow Jones Industrials lost a whopping .... wait for it... 31 points. So, we're just about even. It's all good! Crown me genius!
$100 Car Payments
Edmonton, Vancouver, Bad Credit, Divorced, Bankruptcy OK. Apply online.
secondchancefinance.ca
(Just a side note: yesterday, oil was up $5 and change and the culprit was the dastardly nation of Russia, causing tensions with the US and its allies over Georgia. Today, oil was down a similar amount, and, what a coincidence, the Russians are leaving. Would nations and traders collude to have little wars and occupations just to move the price of oil? Count on it.)Edmonton, Vancouver, Bad Credit, Divorced, Bankruptcy OK. Apply online.
secondchancefinance.ca
On the day, advancing issues overwhelmed decliners, 4421-1773. New lows defeated new highs, 153-59.
Oil dropped $6.59, to end the week at $114.59. Gold lost $5.50, to $833.50. Silver fell 25 cents to $13.59. Everything seemed to go absolutely nowhere this week.
Volume on the equity markets was the lowest of a very low volume week.
So, are you playing or being played?
NYSE Volume 888,139,000
NASDAQ Volume 1,395,867,000
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