Who Pulled The Plug? Friday's Freefall In Perspective

Everything was going along so swimmingly for the elitists of the world.

Interest rates were near or below zero in nearly every developed nation (Japan, the EU, Switzerland, the main components of such madness), but in the USA the Federal Reserve continued to hint that they would like to "normalize" rates, or, in a manner not-so-kind, raise the short term federal funds rate a little, tiny bit more, maybe soon, like at the September FOMC meeting.

Well, stock investors would have no part of that, so, when Fed Governor Rosengren said that the economy was strong enough to warrant a rate hike at the next FOMC meeting, September 20-21,, the market opened with a bang to the downside. Regardless of the other Fed governors - Tarullo and Kaplan - who would speak later on Friday and offer more dovish comments on raising rates, it was too late. Strong hands in the market had made their moves, and no reassurances would correct that.

As Friday wore on, the selling intensified, with the major indices finishing a week that had been eerily quiet and unassuming with the biggest sell-off since January.

Strangely enough, although Fed governors and other economists believe the economy is in pretty good shape, one would be advised to get some input from the man on the street (those 95 million unemployed Americans) who isn't buying it, or from presidential polls, which show Donald Trump about to overtake Hillary Clinton and the status quo in what should amount to a landslide victory and a mandate for major policy overhaul in many areas of governance.

All told, it was a very disturbing week for the powers that be.

Friday's Fallout:
Dow Jones Industrial Average
18,085.45, -394.46 (-2.13%)

S&P 500
2,127.81, -53.49 (-2.45%)

NASDAQ
5,125.91, -133.57 (-2.54%)

NYSE Composite
10,613.53, -268.80 (-2.47%)

The Week:
Dow: -406.51 (-2.20%)
S&P 500: -52.17 (-2.39%)
NASDAQ: -123.99 (-2.36%)
NYSE Composite: -243.39 (-2.24%)

This IS September Under The Fed's Thumb

No movement. No comment.

Thursday:
Dow Jones Industrial Average
18,479.91, -46.23 (-0.25%)

S&P 500
2,181.30, -4.86 (-0.22%)

NASDAQ
5,259.48, -24.44 (-0.46%)

NYSE Composite
10,881.76, -8.41 (-0.08)

Seriously, Nothing To See Here; Volatility Dead

It's getting more and more difficult to keep a straight face when discussing the so-called "markets," when they only react to the edicts and pronouncements from the Federal Reserve.

Maybe things are just better nowadays, with lower profits for the S&P 500 companies, but higher share prices. Something is going to give. Some day. Maybe.

Hump Day:
Dow Jones Industrial Average
18,526.14, -11.98 (-0.06%)

NASDAQ
5,283.93, +8.02 (0.15%)

S&P 500
2,186.16, -0.32 (-0.01%)
^NYA

NYSE Composite
10,890.01, -0.78 (-0.01%)

If It Isn't Already, The Stock Market Should Be Rigged

Seriously, shouldn't stocks just go higher all the time given that the central bank has everybody's backs?

Makes sense if you are invested in establishment slave-labor and tax policies that have crippled the middle class.

After Labor Day Bonanza (stocks were down early, but we can't have that):
Dow Jones Industrial Average
18,538.12, +46.16 (0.25%)

NASDAQ
5,275.91, +26.01 (0.50%)

S&P 500
2,186.48, +6.50 (0.30%)

NYSE Composite
10,891.15, +34.23 (0.32)

August Jobs Report Disappoints, Traders Euphoric

The headline says what's so weird about markets in the central banking age: Bad news is good news.

In this instance, the August non-farm payroll report delivered only 151,000 net new jobs when expectations were for 180,000.

While it wasn't a huge miss, and, the BLS NFP report is one of the most conflated, untrustworthy, fragile and ultimately revisionist data points delivered to markets every month, it still holds water with the investing class.

The point taken here is that since there seems to be not enough jobs created to keep the economy humming along at anything more than a 1-1.5% growth rate, the Federal Reserve will not have any good reason to raise rates at their next meeting, in about two-and-a-half weeks.

Halelujah! The party continues.

Friday's Free-for-all:
Dow Jones Industrial Average
18,491.96, +72.66 (0.39%)

NASDAQ
5,249.90, +22.69 (0.43%)

S&P 500
2,179.98, +9.12 (0.42%)

NYSE Composite
10,856.92, +84.99 (0.79%)

For the Week:
Dow: +96.56 (+0.52%)
NASDAQ: +30.98 (+0.59%)
S&P 500: +10.94 (+0.50%)
NYSE Comp.: +107.59 (+1.00%)