Monday, stocks changed little in Asia, rose 0.5% in Europe, and shot up 1.8% in the U.S. on moderate volume. The 10-Year U.S Treasury Bond yield moved up 3% to end the day at 2.06% while the VXO plummeted 12% falling below the critical 20 level to close at 19.97. Precious metals miners moved up 3% despite little move in the metals themselves.
Tuesday, stocks rose 0.5% in Asia and 0.6% in Europe but changed little in the U.S. on moderate volume. Crude oil shot up 4% to close at 48.11 while precious metals miners moved up another 3% as war drums were beating louder in the Middle East over Syria.
Wednesday, stocks soared 2.5% higher in Asia. In Europe they moved little, but in the U.S. then gained 0.8% on moderate volume. The VXO fell 5% to close at 18.09. Turkey stock IBM broke above 150 to confirm the nutty buying-spree sentiment had indeed returned.
Thursday, stocks in Asia fell slightly and those in Europe rose 0.3%. In the U.S. the big news was the release of the minutes from the most recent FOMC meeting. The FOMC minutes showed that it was not a close call as Bullard and others had said. This news re-ignited the Kool-Aid party.
Stocks in the U.S. gained 1.1% on low moderate volume. Oil gained another 4% to close at 49.66 and the 10-Year U.S Treasury Bond yield moved up 2% to end the day at 2.11%. The euphoria propelled the Dow, S&P, and NASDAQ indices above milestone levels to close above 17,000, 2000, and 4800 respectively.
Friday, Asian stocks caught the fever from the U.S. and rose 1.6%. The rise in Europe was a modest 0.4% while stocks in the U.S. went nowhere on moderate volume. VXO continued its slide — falling 5% to close at 16.67. Precious metals moved up about 2% while their miners gained about 5%. Market action this week sure did feel like a dead cat bounce. Time will tell.