It’s interesting to watch stock prices defy logic. Here’s an article that gives a very good reason that we should already have firmly in mind. With Apple dominating the indices and their commitment to massive stock buy-backs, no wonder we have gross price inflation in stocks. And here’s another if you have the time that lays out the very messy state of affairs the economic tyrants have constructed. With that grim introduction, let’s proceed to look at the price action in the markets this past week.
Monday, stocks rose slightly in Asia, fell slightly in Europe, and in U.S. rose 0.4% on low moderate volume. The VXO dropped 7% to close at 12.36 and the 10-Year U.S. Treasury bond yield rose over 4% to close at 2.08%. The big news of the day was that the NASDAQ finally closed above that 5000 level again.
Tuesday, stocks closed nearly unchanged in Asia but fell 1% in Europe and 0.5% in the U.S. on low volume. The VXO rose 8% to close at 13.34.
Wednesday, stocks fell 0.6% in Asia, rose 0.8% in Europe, and fell 0.4% in the U.S. on low volume. That brought the NASDAQ back below 5000 — never to return for the rest of the week.
Thursday, stocks fell 0.4% in Asia, rose 0.8% in Europe, and nearly unchanged in the U.S. on low volume as Mario Draghi formally announced the beginning of QE in Europe.
Friday, stocks gained 0.6% in Asia, closed nearly unchanged in Europe, and fell 1.6% in the U.S. on moderate volume. The VXO shot up 13% to close at 15.58, while precious metals miners plummeted over 7% as the 10-Year U.S. Treasury bond yield rose over 6% to close at 2.24%.