Monday, stocks rose in Asia 0.8%, in Europe 0.3%, and in the U.S. 0.5% on strong volume. The VXO moved up 8% to close at 13.14. In a sure indicator of market froth, IBM closed above the 140 benchmark. Tuesday, stocks gained slightly in Asia, rose 0.5% in Europe, and were up 0.4% in the U.S. on strong volume.
Wednesday, stocks closed little changed in Asia, fell 0.9% in Europe, and fell 0.5% in the U.S, on strong volume. The 10-Year U.S. Treasury bond rate fell 3% to close at 2.54 in reaction to the uber-dovish FOMC statement. So we are now in a ten-year bull market, have stocks nearing all-time highs and real estate also still pricing near highs. Unemployment is in record low territory. GDP is in the 3% range, and inflation is steady at the 2% Fed target level. Still the FOMC believes it must continue to keep the economy on life support by maintaining unnaturally low interest rates and an obscene balance sheet debt level. Precious metals miners moved up 2% and IBM dipped to close below the 140 benchmark.
Thursday, stocks gained 0.5% in Asia, closed unchanged in Europe, and gained 0.7% in the U.S. on strong volume. Apple soared up 4% to blast far above the 190 benchmark. IBM closed above 140 again. Friday, stocks closed little changed in Asia, fell 1.2% in Europe, and plummeted 1.9% in the U.S. on high volume. The VXO shot up 20% to close at 17.21 as IBM dipped below the 140 mark but the S&P 500 Index held just above the 2800 level at the close. The 10-Year U.S. Treasury bond rate fell 3% to close at 2.46