Monday, stocks gained 0.4% in Asia, lost 0.6% in Europe, but changed little in the U.S. on moderate volume. The VXO continued its relentless march higher — this time gaining 6% to close at 18.25. Tuesday, stocks rose 0.3% in Asia, fell 1% in Europe, and dropped 0.7% in the U.S. on moderate volume. The VXO moved up another 6% to close at 19.30 as fear continues to creep in. Precious metals gained 1% and their miners moved up about twice that much.
Wednesday, stocks fell 1% in Asia, 1.2% in Europe, and 0.8% in the U.S. on moderate volume. The VXO gained 8% to climb over the 20 benchmark and end the day at 20.78. Two other closing benchmarks smashed were the Dow below 18,000 and the S&P below 2100. All this happened as the FOMC held interest rates unchanged as expected. Precious metals bucked the trend by gaining 1% while their miners gained twice that amount.
Thursday, stocks fell slightly in Asia, changed little in Europe, but continued their slide in the U.S. — losing 0.8% on light volume. The VXO continued its rise gaining 9% to close at 22.67. Precious metals gained 1% and their miners rose twice that amount.
Friday, stocks fell 1.1% in Asia, 0.8% in Europe, and just slightly in the U.S. on light volume. The VXO rose again — this time 7% — to close at 24.33. The big news of the day was the payrolls report, but it wasn’t particularly surprising. The 10-Year U.S. Treasury Bond yield fell 2% to close at 1.78. Precious metals gained 1%, but their miners lost 2%.
Stocks lost ground the past nine consecutive days — a pattern not seen in 36 years. As might be expected, over that nine-day span and longer, we’ve seen a slide in Apple as well as the FANGs. Fear has crept back into trader sentiment with the VXO well above the 20 pivot point. It is the season for the start of a decline. Perhaps the bear is finally stirring from its drug-induced slumber.