When the wind finally stops blowing stocks higher, who will be the fall guy? Will the central banker’s phony bubble economics finally receive its due? Here’s an article that gives an interesting perspective on how blame shifting will be managed for the bear market to come.
Monday, stocks in Asia were off 0.4% but in Europe they were up slightly. In the U.S., stocks fell 0.3%. That was enough to drag IBM below the 150 mark again. Then IBM’s non-earnings report sealed the deal as its tail-eating trick has run out of steam. Precious metals fell 1.4% and their miners lost three times that amount.
Tuesday, stocks changed little in Asia, fell 0.5% in Europe, and closed nearly unchanged in the U.S. on low moderate (light) volume. The VXO rose 7% to close at 15.26, and the 10-Year U.S Treasury Bond yield rose 2% to end the day at 2.07%. As expected, IBM fell hard in response to its dismal earnings report — falling 6% to barely stay above the 140 mark.
Wednesday, stocks gained 0.5% in Asia but closed nearly unchanged in Europe. In the U.S., they dropped 0.7% on light volume. The VXO shot up 12% to close at 17.10, and the 10-Year U.S Treasury Bond yield fell 2% to end the day at 2.03%.
Thursday, stocks fell 0.3% in Asia but rose 2.1% in Europe. In the U.S., stocks shot upward 1.4% on moderate volume as hope propelled stocks. The VXO erased the previous day‘s move — falling 12% to close at 15.08. Friday, stocks in Asia followed the euphoria from the West and rose 1.5%. Stocks in Europe continued their rise — gaining another 2.0%. In the U.S., stocks gained 0.6% on moderate volume. The NASDAQ index blew above the 5000 level riding on the positive reports from Google, Microsoft, and Amazon. The 10-Year U.S Treasury Bond yield rose 3% to end the day at 2.08%.