The trading range narrowed for stocks as the days ticked closer to the September FOMC meeting this coming Tuesday and Wednesday. Will they lower rates? My guess is: fat chance. It seems that they want to hold the stock market up at all costs until the elections are over. That action best supports the corrupt politicians that they pander to. Whether or not they mention the elections as their excuse, I believe elections will be their reason along with their usual lack of principle and backbone. Of course, I cannot predict the future, but that’s my best guess.
Monday, stocks in Asia mirrored the Friday action in the West and fell 2.4%. Stocks in Europe shed another 1%, but in the U.S. stocks gained 1.2% on moderate volume. The VXO fell 23% to close at 13.39. The market recovered when a couple of Federal Reserve talking heads tamped down the likelihood of a September rate hike.
Tuesday, stocks changed little in Asia, fell 1% in Europe, and fell 1.9% in the U.S. on light volume. The VXO rose 27% to close at 17.03. The 10-Year U.S. Treasury Bond yield shot up 4% to close at 1.73 while precious metals fell 1% and their miners fell about four times that amount.
Wednesday, stocks fell 0.6% in Asia, closed little changed in Europe, and fell slightly in the U.S. on light volume. The 10-Year U.S. Treasury Bond yield fell 3% to close at 1.69. Thursday, stocks changed little in Asia, rose 0.6% in Europe, and rose 0.9% in the U.S. on light volume. The VXO rose 6% to close at 15.51. Friday, stocks in Asia rose 0.6%, in Europe fell 0.8%, and in the U.S. fell 0.7%. Volume was higher but not significant given it was a quadruple witching day. The VXO fell 5% to close at 14.80.