Monday, stocks in Asia and Europe closed nearly unchanged while in the U.S. they gained 0.4% on hope with very low volume. Tuesday, stocks in Asia and Europe apparently followed through with the hopefest from the previous day in the U.S. to rise 0.5% and 0.9% respectively. By the time of the U.S. closing, hope was waning with stocks falling 0.7% on low volume as the 10-Year U.S. Treasury Bond yield again began trading above 2.7% and closing at 2.72 and the S&P 500 Index closed below 1700. The VXO shot up 15% to close at 17.15, and the 10-Year U.S. Treasury Bond yield fell nearly 2% to close at 2.67%
Stocks took a breather in Asia Wednesday, closing nearly flat for the day. In Europe, they closed up just slightly. In the U.S. it was party time again! Stocks shot higher 1.2% on low volume as the likelihood of another can kick was virtually assured. The VXO blasted downward nearly 17% to close at 14.09. Late that evening, the final nail on the coffin was driven. H.R. 2775 http://www.zerohedge.com/news/2013-10-16/mission-accomplished-see-you-all-again-february kicked the can again and ended a golden opportunity for responsible governing.
Thursday, stocks in Asia adjusted upward 0.6% to take this news into account. Spendthrift governing lifted battered precious metals and brought gold up above the 1300 mark again — lifting precious metals gained more than 3% and their miners about 4.5%. Turkey-stock IBM plummeted to below $175 per share as it missed badly on revenue, and it’s only trick is to foolishly buy back it’s own stock at its highs using the money the Fed steals from responsible people.
Here’s a really good article that talks about the sustainability of our debt binge: and here’s another. In Europe, stocks treaded water trading up just slightly. But in the U.S. the party continued. Stocks gained another 0.9% — powering the S&P 500 Index to another record high as the VXO plummeted nearly 9% to close at 12.87 and the 10-Year U.S. Treasury Bond yield fell another 3% to close below 2.6%. Speaking of Fonzie, Happy Days are here again!
Friday, stocks rose in Asia 0.6% in Europe 0.8% and in the U.S. 0.5% on moderate volume. A very strong earnings report from Google cheered stocks and lifted stocks further into the stratosphere. The VXO dropped nearly 9% more to settle in at the unsustainable level of 11.77. When this bubble finally bursts, a lot of mindless trend-followers will be in for a rude awakening.
For the week, stocks rose nearly 3% while precious metals rose 4%.