Monday, stocks in Asia closed slightly lower. In Europe, they closed up 0.4% and in the U.S. 0.3% on very low volume. The S&P 500 and Dow Jones Industrial Average both closed at record highs again as the euphoria for stocks presses them ever higher. Stocks jumped up 1% in Asia Tuesday but retreated 0.7% in Europe and 0.4% in the U.S. on low volume. The VXO crept up 4% with precious metals miners gaining a similar amount. Wednesday, Asian stocks closed flat. In Europe they rose 0.6%, but in the U.S. they were also flat on low volume.
Thursday, in Asia stocks again closed flat, in Europe up 0.9, and in the U.S. up 0.7 on low volume. The Dow Jones Industrial Average and the S&P 500 Index both again set (marginal) closing highs in response to more dovish verbiage from the politburo chief in his testimony to Congress. There will be a point when even these mindless market movements will succumb to reality. When the do, the Fed’s jig will be up. The bond market is already giving inklings that equities have had about enough of this fantasy-land movement.
Friday, Asia and Europe down slightly, while stocks in the U.S. gained 0.3% despite earnings missed consensus projections from Microsoft and Google. Precious metals gained about 1.6% while their miners doubled that. The VXO tumbled nearly 7% for the day to close at 12.58. For the week stocks gained about 0.7% and precious metals miners shot up over 5%.