Monday, stocks rose in Asia 0.4%, in Europe 0.8%, and in the U.S. 0.5% just because. Trading volume was very low while precious metals and their miners sunk nearly 3%. Tuesday, stocks rose in Asia another 0.4%, but in Europe stocks fell 0.4%, and in the U.S. they fell slightly as volume picked up to a more normal level. Janet Yellen testified to Congress that some categories of stocks were a bit stretched. Precious metals were hammered down about 1.5% farther while their miners lost more than twice that amount and gold pierced below the $1300 per ounce level.
Wednesday, stocks changed little in Asia, but in Europe they blasted 1.3% higher and in the U.S. they rose 0.5% on low volume. The VXO declined over 6% to close at 9.78 and precious metals miners gained almost 2%.
Thursday, again stocks were nearly unchanged in Asia, but they dropped 1% in Europe and 1.2% in the U.S. on low volume. The Dow Jones Industrial Average dropped below the 17,000 level and gold rose back above the $1300 an ounce mark. The VXO shot up about 35% to close at 13.13 while precious metals rose 2% and their miners gained about twice that amount.
The news of the day was that a Malaysian passenger jet was shot down over Ukraine. It would be a bit ironic if the Malaysian airliner disaster turns out to be the black swan that started the panic that convinces investors to run for the exits. For good measure, Israel decided to make its move into Gaza a few hours later. Here’s a link that shows what a farce this current stock market rally really is.
Friday, socks fell just slightly in Asia. In Europe, they moved even less. But in the U.S., they roared back 0.9% on low moderate volume. The VXO plummeted 22% to close at 10.24. That big gain in stocks was more than enough to bring stocks into the green for the week. All of that drama on Thursday must have been just a false alarm.