Monday, stocks gained 0.5% in Asia and 0.4% in Europe. Stocks closed nearly unchanged in the U.S. on low volume. The VXO dropped 10% to close at 8.93.
Tuesday, stocks rose 0.9% in Asia, fell 0.6% in Europe, and closed little-changed in the U.S. on light volume. Wednesday, stocks rose 0.4% in Asia, 1.6% in Europe, and 0.7% in the U.S. on moderate volume. The day ended with the Dow Jones Industrial Average closing at another record high. Oddly, the VXO rose 11% to close at 10.36. Janet Yellen testified before Congress leaving a relatively dovish impression.
Thursday, stocks in Asia continued their daily upward march this week posting a 1% gain this time. In Europe and the U.S stocks were up 0.3% on low volume. The VXO plummeted 19% to close at the unsustainable level of 8.40 as Janet Yellen indicated we were already approaching the mysterious “normal rate” of interest. The day ended with the Dow Jones Industrial Average again closing at a record high.
Friday, stocks closed little-changed in Europe while they rose 0.3% in Asia and 0.4% in the U.S. on low volume. Precious metals and their miners gained 1%. The day ended with both the Dow Jones Industrial Average and the S&P 500 Index closing at record highs. With the VXO closing the week below nine, it’s not inappropriate to call current market sentiment giddy.