This past week could be summarized by the 2.5% upward blast we saw on Friday on the latest EU fantasy. The rest seems to be just random noise. The surprise decision by Chief Justice Roberts on Obamacare, seemed to have little effect.
Monday, Asian stocks moved down 0.5%, Europe followed down 2%, and U.S. dropped 1.5%, VXO leaped back over 20 on moderate volume. Tuesday, worldwide stocks traded flat on low-to-moderate volume. VXO drifted down below 20. Wednesday, stocks rose Asia 1%, Europe 1.5%, and U.S. 1% Thursday, U.S. stocks traded flat on moderate volume thanks to a late-day recovery. The Supreme Court decided to let Obamacare stand.
Friday, stocks in Asia moved 1.5% higher and Europe followed up 2.5% on the EU agreement to recapitalize banks via the future European Stability Mechanism. U.S. stocks also shot up 2.5% on the latest “risk on” party. The VXO fear index plummeted to the no fear level of 16.5 on strong moderate volume.