Dow Jones Average Rises Relentlessly

Monday, stocks rose worldwide in Asia 0.3%, in Europe 0.8%, and in the U.S. 0.5% on strong volume. Record closing highs keep rolling on including NYSE and with the Russel 2000 and Apple joining the party. Tuesday, stocks fell 0.3% in Asia, changed nearly unchanged in Europe, and rose 0.3% in the U.S. on strong volume. The VXO fell 12% to close at the unsustainable level of 9.07. In another indication of obscene valuations, IBM crossed above the 180 mark. Of course, this meant continuation of the all-time high syndrome highlighted Monday. All of this happened despite a rather halkish report to Congress from Janet Yellen.

Wednesday, stocks in Asia followed the momentum in the West by gaining 0.7%. Stocks in Europe and the U.S. rose 0.4% on high volume as the melt-up continues. Major stock indices registered another day of record closing highs. Despite the euphoria, the VXO shot up 19% to close at 10.77.

Thursday, stocks moved 0.4% higher in Asia, 0.4% lower in Europe, and closed little changed in the U.S. on strong volume. This was just enough juice to produce another new record closing high for the Dow Jones Industrial Average though. The 10-Year U.S. Treasury Bond yield fell 2% to close at 2.45. Here’s a good article reminding us that banks are still under-capitalized.

Friday, stocks fell slightly in Asia but closed little changed in Europe and the U.S. on strong volume. The VXO moved up 7% to close at 11.27 while precious metals miners fell 2%. But the Dow Jones Industrial Average closed positive to give it a record closing high each day of the week. The NASDAQ and S&P 500 Index also logged closing highs to close out the week.

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