Monday, stocks closed 0.7% lower in Asia but rose 0.3% in Europe and the U.S. on low volume. That was enough to bring the S&P 500 Index back above the 2100 benchmark. The 10-Year U.S Treasury Bond yield moved 2% lower to close at 2.15% while precious metals miners shot up 4%.
Tuesday, stocks fell again in Asia — this time 0.5%. In Europe they rose slightly and in the U.S. they fell slightly on low volume. The 10-Year U.S Treasury Bond yield moved 2% higher to close at 2.20% while precious metals declined 1% and their miners lost about twice that amount.
Wednesday, stocks fell around the world — 0.5% in Asia, 1.9% in Europe, and 0.9% in the U.S. in low moderate volume. The VXO shot up 16% to close at 16.03. Crude oil crashed 5% to close at 41.08. The 10-Year U.S Treasury Bond yield moved 3% lower to close at 2.12%. Precious metals and their miners rose over 2%. In case you haven’t noticed, now the Fed itself admits that QE has not saved the U.S. economy.
Thursday, things seemed to be coming apart at the seams. Stocks in Asia fell 1.6%, in Europe 1.9%, and in the U.S. 2% on moderate volume. The NASDAQ dived under the 5000 level and the Dow Jones Industrial Average blew below 17,000. A number if indicators are pointing to weakness in stocks. Here’s one article and another along that line
Precious metals and their miners gained around 2% or so while crude oil slid another 1% to close at 40.78. The VXO shot up 24% to close at 19.98. The 10-Year U.S Treasury Bond yield moved 2% lower to close at 2.08%. It felt in a way like the wheels were finally starting to come off.
Friday, stocks fell hard around the world. In Asia they dropped 1.7%, in Europe 1.6%, and in the U.S. 2.7% on rather low volume considering the drama and options expiration. This dragged down the S&P 500 Index to close below the 2000 level for the first time since early this year. While precious metals held firm, their miners did not escape the downdraft either. When we see financial stocks and precious metals crashing hard, we know things are coming unglued as the massive debt leverage will suck nearly everything liquid and with value down the drain with it. Fear as measured by the VXO skyrocketed 42% higher to close at 28.34. Oil dipped below $41 per barrel. For the week, stocks shed 5.4% while the fear gauge rose 100%.