Monday, Asian stocks lost 0.3%, European stocks plummeted 3.4% on banking sector jitters. U.S. stocks dropped 1.7% on strong volume. The VXO rose another 5% to end the day at 27.38. While the Dow Jones Industrial Average traded below the 16,000 level most of the day, it made another miraculous recovery after markets in Europe closed. This sure looks like PPT intervention trying to prevent a big decline that could precipitate a meltdown. The S&P 500 Index close of 1853 though is definitely a danger signal. Crude oil tumbled 3% to 30.10, but the big story was U.S Treasuries the 10-Year U.S. Treasury Bond yield plummeted 6% to close at 1.74. Precious metals also did well by gaining 2% as their miners tacked on twice that amount.
Tuesday, stocks fell 2.6% in Asia, 1.6% in Europe, and 0.5% in the U.S. on moderate volume. VXO ramped up 9% to end at 29.87. For the second day in a row, the Dow Jones Industrial Average traded below the 16,000 level most of the day, it made another miraculous recovery after markets in Europe closed. Oil slipped 7% to close at 27.94, precious metals lost 1% and their miners gave up four times that amount.
Wednesday, stocks declined 1% in Asia but rose 1.8% in Europe as rumors of an ECB rescue of Deutsche Bank surfaced. And here’s an interesting slant. The Federal Reserve indicates that negative interest rates may not be legal. Could it be that they are looking for an excuse not to do anything that would further stimulate market speculation?
In the U.S., stocks changed little on moderate volume as Janet Yellen reported to Congress. The VXO slid 6% to close at 28.11. That didn’t prevent the Dow Jones Industrial Average from finally breaching the 16,000 level for the close.
Thursday, stocks fell 0.3% in Asia but cratered 3.7% in Europe, and dropped 1.6% in the U.S. on moderate volume. The VXO jumped up 10% to close at 30.78 as stocks fell through a key technical area and the Dow in particular finally broke well below the 16,000 level and remained below it at the close. Turkey-stock IBM broke below 120 to close at 117.85 and the NYSE Composite Index closed in on closing below 9000. Precious metals soared 5% and their miners made similar gains as gold blasted above the 1200 level to close at $1248 an ounce. The 10-Year U.S. Treasury Bond yield sunk 4% to close at 1.64 and crude oil closed at 26.20.
Friday, stocks plummeted 3.2% in Asia, skyrocketed 3% in Europe, and jumped up 1.7% in the U.S. on moderate volume. The VXO descended 12% to end the week at 26.90. Oil shot up 11% to close at 29.08, while the 10-Year U.S. Treasury Bond yield powered 6% higher to close at 1.75. Besides the big upward move of oil, the big news of the day was that Jimmy Dimon bought $26M shares of JP Morgan Chase as confidence in banks sinks.