Fear Returns and Yields Slide

Monday, stocks fell 1% in Asia, 2.3% in Europe, and 1.5% in the U.S. on strong volume. The VXO shot up 21% to close at 18.67. The 10-Year U.S. Treasury bond yield fell 5% to close at 1.60. Apple dropped to close 310 and IBM closed below 140.

Tuesday, stocks fell 0.4% in Asia but gained 0.8% in Europe and 0.8% in the U.S. on moderate volume. The 10-Year U.S. Treasury bond yield gained 2% to close at 1.64. Apple recovered a bit to close above the 310 benchmark. Precious metals and their miners lost 2%.

Wednesday, stocks fell 0.3% in Asia but gained 0.4% in Europe and on moderate volume. The 10-Year U.S. Treasury bond yield fell 3% to close at 1.59. Apple recovered more ground to close above the 320 benchmark. Precious metals gained 1% as their miners moving up twice that amount.

Thursday, stocks fell 1.9% in Asia and 0.8% in Europe, but closed little changed in the U.S. on moderate volume. The 10-Year U.S. Treasury bond yield fell 2% to close at 1.56. Friday, stocks fell 0.3% in Asia, 1.1% in Europe, and fell 1.8% in the U.S. on high volume. The VXO 20% higher to close at 20.05 and enter the fear range. The 10-Year U.S. Treasury bond yield fell 2% to close at 1.52. Apple fell 4% to close below the 310 benchmark while IBM gained 5% to close above the 140 benchmark. The counter-trend euphoria with IBM came in response to Ginny Romnety announcing she would stepping down. Precious metals gained 1%.

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