Monday, stocks in Asia rose 0.4%, but in Europe they were unchanged. In the U.S., stocks rose 0.3% on low volume. Tuesday, Asian stocks fell slightly. As mentioned last week, credit is driving this current rally. Here’s an article that agrees with the credit bubble as it applies to stocks and here’s another. Wednesday in Asia, stocks dropped 0.5%. Stocks closed unchanged in Europe and the U.S. on very low volume.
Thursday, Asian stocks fell 0.3%, but shares in Europe shot up 1.2%. In the U.S. stocks powered still higher with the S&P 500 Index within a whisker of an all-time high on low volume. The VXO tumbled over 4% to the ridiculous level of 11.25. IBM gained nearly two percent in this feeding frenzy. Friday, the enthusiasm reached Asia, sparking a 0.6% rise. The complacency of the U.S. stock market is stunning. VXO dropped another 2.5% to fall below the ridiculously low eleven mark. Stocks in the U.S. declined just slightly as options expiration juiced volume to moderate.
For the week, U.S. stocks gained about 0.6% as the relentless rise continues. I read today that according to Alan Greenspan, this stock market is not reflecting “irrational exuberance.” I guess that means, “Party on!” I guess bubble by another name is not a bubble.