Monday, stocks rose in Asia 0.3% but fell in Europe 1.2% and in the U.S. 1.9% on very high volume. The VXO rose 8% to close at 25.98 while the Dow Jones Industrial Average plunged far below the 24,000 benchmark. Precious metals gained 1% and their miners moved up about twice that amount. Cryptocurrencies gained about 10% for the day.
Tuesday, stocks fell 1.1% in Asia, 0.9% in Europe, and 0.3% in the U.S on very high volume as “traders” held their breath in anticipation of word from the FOMC on Wednesday. Precious metals miners gained 3%.
Wednesday, stocks in Asia closed little changed, they rose 0.3% in Europe, but they fell 1.1% in the U.S. on very, very high volume. The news of the day was that the FOMC stayed on track “as expected” with respect to raising interest rates and continuing to roll debt off of their balance sheet. The 10-Year U.S. Treasury Bond yield fell 2% to close at 2.78 as flight to quality trumped movement of rates by the Fed. Precious metals miners plummeted 5%.
Thursday, the sell-off continued. Stocks fell in Asia 1%, in Europe 1.4%, and in the U.S. 1.3% on very heavy volume. The VXO moved up 14% to close at 30.05. The Dow Jones Industrial Average and the S&P 500 Index closed below 23,000 and 2500 benchmarks respectively as the NASDAQ officially entered a bear market. Precious metals gained 2% while their miners rose twice that amount. Cryptocurrencies continued their comeback with another 10% gain on the day.
Friday, stocks fell 0.4% in Asia, closed unchanged in Europe, and fell 1.7% in the U.S. on massive volume — explained in part by the quadruple witching day transactions. The VXO moved up 7% to close at 32.11. Fear clearly has gripped the market. As margin calls force the sales of stocks across the board. The NASDAQ was the first of the major indices to dip below 80% its recent high — officially put it in bear market territory. Cryptocurrencies gained 30% for the week.