Here’s and interesting article that reinforces the idea that the party’s over. Monday, stocks in Asia traded in line with that thinking, dropping 1.7%, in Europe 1.6%, and in the U.S. 1.4% on low moderate volume. The VXO rose over 5% to close at 19.92. Precious metals fell about 2%, but their miners crashed about 6%. Tuesday, Asian stocks managed to close in positive territory, rising about 0.3% despite the ongoing concern that the central bank of China seemed to have become less accommodating. In Europe, stocks closed up 1.5%, nearly covering the losses suffered the previous day. In the U.S., stocks shot up 1.1% on low moderate volume.
Wednesday, the party continued as stocks in rose 2% in Asia, 1.8% in Europe and 1% in the U.S. on low volume while the S&P 500 Index broke above the 1600 level. Thursday the run continued, in Asia up 0.6%, in Europe 0.7%, and in the U.S. 0.8% on low volume driving the Dow Jones Industrial Average above 15000. Gold broke below $1200 per ounce. At these prices, precious metals (gold and silver) are now selling below production cost making them both bargains. 10-Year U.S. Treasury Bond rate closed just below 2.5%. Precious metals dropped 1.1% but their miners gained about 2%.
Friday, stocks in Asia climbed 1.5%. In Europe, stocks fell 0.4% and in the U.S. they declined 0.3% on high moderate volume. Precious metals gained about 4% and their miners skyrocketed about twice that amount. For the week, stocks rose 0.9% but for the month they lost 1.5%. They are still up over 12% for the year though.
