Whatever It Takes

Monday, stocks fell 4.8% in Asia, 4.6% in Europe, and nose-dived 11.8% in the U.S. on mammoth volume . The VXO skyrocketed 51% to close at 93.85. The Dow dropped nearly 3000 points to close just above 20,000. The NASDAQ plummeted nearly 1000 points to close well below 7000. The NYSE index fell well below 10,000 as Apple fell below 250 and IBM closed below 1000 The 10-Year U.S. Treasury bond yield sunk 23% higher to close at 0.7. Precious metals plummeted 5% while gold miners shot up about 20% as gold soared while silver languished. 

Tuesday, stocks gained 1% in Asia, 2.6% in Europe, and 5.2% in the U.S. on mammoth volume. The Fed made its next futile desperate attempt at kicking the can and stemming the tide of this bear market. The VXO declined 13% to close at 81.91. The 10-Year U.S. Treasury bond yield blasted 37% higher to close at 1.00. Precious metals miners gained around 10%. The Dow, NASDAQ, and NYSE closed above their 21,000, 7000, and 10,000 levels respectively. Apple closed above 250 and IBM ended above the 100 benchmark.  

Wednesday, stocks fell in Asia 3.2%, in Europe 4.1%, and 6.7% in the U.S. on gigantic volume. The VXO moved up 11% to close at 89.61. The 10-Year U.S. Treasury bond yield ramped 27% higher to close at 1.27. Precious metals fell 3% while their miners crashed over 20%. The Dow, NASDAQ, and NYSE closed below 20,000, 7000, and 10,000 respectively. Apple also closed below its 250 benchmark again.  

Thursday, stock closed down 2.6% in Asia, up 3.3% in Europe, and up 0.8% in the U.S. on mammoth volume. The VXO fell 10% to close at 80.59. The 10-Year U.S. Treasury bond yield fell 12% to close at 1.12 while precious metals miners closed up about 5%.  The Dow and NASDAQ recaptured their respective 20,000 and 7000 closing benchmarks.

Friday, stocks gained 3.6% in Asia and 1.7% in Europe but fell 3.5%  in the U.S. on gigantic volume. The VXO fell 9% to close at 73.54. The 10-Year U.S. Treasury bond yield fell 16% to close at 0.94. Precious metals gained 3% while their miners lost 5% as silver recovered a bit with respect to gold. The Dow and NASDAQ again relinquished their respective 20,000 and 7000 closing benchmarks. Apple closed below 230 as IBM closed below 100.

The Fed tried many other tricks — including QE4 and massive repo injections. Nothing stemmed the tide. Perhaps money injections will not cure the Wuhan virus and the associated fallout that burst the obscene bubble that they have been blowing for the last eleven years.

Leave a Reply

Your email address will not be published. Required fields are marked *