Monday, stocks fell in Asia 1.5% as the news of attacks in Paris and French retaliation rattled traders — but not for long. Stocks in Europe closed up slightly and in the U.S. they roared 1.4% higher on light volume. The VXO fell 14% to close at 17.73. After dipping below 40, crude oil shot up 3% higher to close at 42.07. Why did stocks take off in the wake of war and uncertainty? Some blame Gartman.
Tuesday, stocks in Asia gained 1% and in Europe shot up 2.9%. In the U.S., they moved a fair amount during the day but showed little change by the close on moderate volume. Precious metals however fell 1.5% and their miners gave up three times that amount. VXO rose 5% to close at 18.61.
Wednesday, stocks in Asia and Europe fell slightly. In the U.S. they soared 1.4% higher on light volume — moving the NASDAQ solidly above the 5000 level again. The “good news” came from the FOMC minutes which indicated the Fed would normalize interest rates to a lower level. And now from the I’m not God Department, prognosticator extraordinaire Dennis Gartman did it again.
Thursday, stocks shot up 1.6% in Asia and 0.4% in Europe, while in the U.S. they closed little changed on light volume, but precious metals miners gained 3% on the day. Friday, stocks continued their rise in Asia climbing 0.6%, in Europe slightly, and in the U.S. little change on moderate volume. The VXO though fell 8% to close at 15.40 and crude oil slipped below $40 per barrel — dropping 3% and closing at 39.39. Precious metals miners also fell 3% as their woes continue.
Finally, you may have heard the Federal Reserve Board drama junkies announced they will meet in a closed-door expedited meeting this Monday at 11:30 to discuss the discount rate. I suppose this amounts to simply more of the same from this hapless crew. I wouldn’t lose any sleep over it.