If It Looks Like a Dead Cat

Monday, Asian stocks shot up 4.5% and those in Europe gained 2.9% as U.S. markets were closed for President’s Day. Tuesday, stocks rose in Asia 0.8%, fell in Europe 0.4%, and ramped 1.6% higher in the U.S. on moderate volume. This kicked the Dow Jones Industrial Average well above the 16,000 benchmark again and moved the S&P within a whisker of one.

The VXO fell 6% to close at 25.07, while oil closed below $30 per barrel at 29.35. The 10-Year U.S. Treasury Bond yield rose 2% to close at 1.78. Precious metals were hammered 3% lower and their miners tanked two to three times that amount as gold closed below $1200 per ounce. And as if turkey-stock IBM hasn’t learned its lesson, it’s back to eating its tail again.

Wednesday, stocks were down in Asia 1%, up in Europe 2.7% and up in the U.S. 1.7% on moderate volume. This produced a trifecta of sorts with the Dow above 16,000, the NASDAQ above 4500, and the S&P above 1900. Oil shot up 4% to 30.65 and the 10-Year U.S. Treasury Bond yield rose 2% to close at 1.82.

Thursday, stocks rose in Asia 2.2%, changed little in Europe, and fell 0.3% in the U.S. on moderate volume. This pulled the NASDAQ below 4500 again. The 10-Year U.S. Treasury Bond yield fell 3% to close at 1.76. Precious metals gained 2% and there miners shot up three times that amount. Here’s an interesting perspective on the market’s status.

Friday, stocks in Asia fell 0.5%, in Europe fell 0.7%, and in the U.S. they fell just slightly on moderate volume as crude oil fell about 3%. IBM rose over 10% for the week bolstering the Dow as it announced the purchase of a medical data firm.

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