Unfazed by Bad News

In Asia Monday, stocks fell slightly, and in Europe they closed down 0.4%. Do you remember Germany’s request for its gold from the Fed? Here’s the latest. In the U.S., stocks closed virtually unchanged on low volume. The VXO dropped below 9 to close at 8.86 while gold miners gained another 2%.

Tuesday, stocks in Asia and Europe closed about unchanged. In the U.S., stocks broke the Tuesday miracle trend, closing down 0.8% on low volume. The VXO shot up over 17% to close at 10.38 while precious metals miners lost over 2%. The Baltic Dry Index is one of many reliable indicators that the bulls choose to ignore

Wednesday, stocks fell in Asia 0.6% and in Europe 1.1%. In the U.S., after disasterous news regarding GDP, stocks perversely gained to rise 0.4% on low volume. The VXO slid 6% and closed at 9.76. The excuse for this rise is bad news is good — increasing the odds for extending some form of Federal Reserve easy money policy dragging on longer (since it has worked so well to date).

Thursday, stocks shot up in Asia 0.9% but moved little in Europe and the U.S. on low volume. Friday, stocks fell slightly in Asia, moved little in Europe, and thanks to a last-hour ramp, closed up slightly in the U.S. on moderate volume. I really cannot explain the reason for the higher-than-usual volume. Despite a week of pretty negative news, stocks held their near-record highs.

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