Stocks rose slightly in Monday on low volume. Tuesday, was more of the same in Asia, but in Europe stocks rose 0.4% and the U.S. 0.5% on low moderate volume, This gain included again lifting the NASDAQ 100 Index above the 3000. I suppose the gain anticipates more arrogant, ignorant action from the Fed.
Wednesday stocks in Asia followed through with a 0.5% gain, but stocks in Europe managed only a slight gain. As anticipated, the reckless abandon came. It included more inflating the Federal Reserve balance sheet (an additional $45B per month). It didn’t seem to be enough for the QE junkie stock traders though. While the news provided a pop for a few hours. By the close, U.S. stocks had dropped back to just a slight gain on low moderate volume. The real gainer of the day was precious metals, which climbed more than 1%.
Thursday, stocks in Asia rose 0.3% while those in Europe declined 0.5%. Stocks in the U.S. declined slightly, bringing the NASDAQ 100 back below the 3000 mark. Gold again dropped below $1700 per ounce. Rick Ackerman rightly observed the Fed is losing its grip. What’s dangerous about this, is when the Fed fails to hold down U.S. Treasury Bond rates, the scam is over.
Friday, stocks in Asia closed flat despite a nearly 5% jump in the Chinese market. In Europe, they declined slightly as was also the case in the U.S. as well as for the week. Apple dropped another 20 points as it homes in on the $500 per share mark. Facebook dropped nearly 5% Friday. Also for the week, the VXO fear index climbed nearly 20%, precious metals declined 2.5%, and 10-Year U.S.Treasury Bond rates rose 5%.