More Fuel to the Fire

Monday, stocks gained 1.1% in Asia but fell slightly in Europe, and rose slightly in the U.S. on 11B shares traded.

Tuesday, stocks fell 0.5% in Asia but gained 0.3% in Europe and 0.5% in the U.S. on 11B shares traded. Precious metals miners dropped 2%. The Dow Jones Industrial Average closed above 39000 and at a record closing high. The S&P 500 Index also posted a record closing high. 

Wednesday, stocks ended little changed in Asia unchanged in Europe but up 0.9% in the U.S. on 12B shares traded. The VIX fell 6% to close at 13.04. Precious metals gained 2% and their miners rose twice that amount. The Dow, NASDAQ, S&P 500 Index, and NYSE all logged a record closing high. The NYSE closed above 18,000. What was the reason for the fireworks? The FOMC released its meeting decision to hold interest rates steady and forecast three rate cuts this year. Supposedly investors feared something worse. The Fed chair’s comments leaned dovish as well — adding more fuel to the fire.

Thursday, stocks shot up 2.3% in Asia and gained 0.9% in Europe but lost 0.9% in the U.S. on 12B shares traded. Precious metals fell 1% and their miners lost twice that amount. The Dow, NASDAQ, S&P 500 Index, and NYSE each logged a new record high close. In case you’re wondering where all of the demand is coming from when the Federal Reserve is trimming its balance sheet and keeping interest rates elevated, you need look no further than that entity that seeks to erode all of our freedoms and confiscate all of our wealth. And along that same line, as Barack Obama famously boasted with his pen and phone comment, executive branch members can act in defiance of the law and get away with it.

Friday, stocks ended unchanged in Europe but fell 0.7% in Asia and 0.6% in the U.S. on 10B shares traded. The NASDAQ ended with another record high close. 

Finally, the Federal Reserve balance sheet declined 28B to 7.51T.