Fed Changes Policy to Extend Low Rates

Is the stock market now too big to fail? Here’s article that attempts to make that case. And here’s one that highlights the hazard of low market breadth.

Monday, stocks ramped up 1.6% in Asia and Europe and 1.3% in the U.S. on high volume. The S&P 500 and NASDAQ continued their string of record closing highs. Apple closed above the 500 benchmark. Is the Fed responsible for this asset bubble? Here’s an author who believes they are.

Tuesday, stocks rose 0.8% in Asia, fell 0.3% in Europe, rose slightly in the U.S. on strong volume. The 10-Year U.S. Treasury bond yield rose 6% to close at 0.68. The S&P 500 and NASDAQ continued their string of record closing highs. The NYSE closed above the 13,000 benchmark while Apple closed below the 500 level.

Wednesday, stocks rose 0.6% in Asia, 0.8% in Europe, and 0.3% in the U.S. on strong volume. The VXO gained 5% to close above the 20 to pivot into the fear zone. Precious metals and their miners rose 3%. The S&P 500 and NASDAQ continued their string of record closing highs. Apple closed back above the 500 benchmark.

Thursday, stocks closed down 0.4% in Asia and 0.7% in Europe but closed up slightly in the U.S. on high volume. The VXO ramped up 10% to close at 22.18. The 10-Year U.S. Treasury bond yield jumped 9% to close at 0.75. Precious metals fell 1% and their miners lost twice that amount. The S&P 500 set another record closing high. The Fed made it official that they will change their rules to keep pumping the asset bubble.

Friday, stocks in Asia closed unchanged. In Europe, they closed down slightly but stocks rose 0.8% in the U.S. on high volume. The VXO fell 7% to close at 20.53. Precious metals gained 2% and their miner gained 3%. The S&P 500 and NASDAQ each set record closing highs. Apple closed just below the 500 benchmark.

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