Monday, stocks fell in Asia slightly and in Europe 0.4%. In the U.S., stocks closed flat on abysmal volume. Here’s an interesting article that claims banks are the greater fools (again). Tuesday, stocks in Asia again fell slightly but in Europe they rose 0.3%. In the U.S., they rose slightly because it was Tuesday, and they have to go up on Tuesday. Volume was very low, and the VXO fell nearly 4% to close at 11.06 as the world awaited the FOMC decision to be reported on Wednesday.
Wednesday, stocks in Asia and Europe closed flat. In the U.S., stocks rose sharply, climbing 0.82% on very low volume. The VXO plunged 12% to close at 9.63. The big news of the day was the decision and statement from the FOMC followed by the news conference. Janet Yellen still insisted the stock market is not in a bubble, but of course the facts seem to contradict that viewpoint.
Ho-hum, we had another FOMC meeting and another S&P 500 Index all-time closing high. Precious metals miners did particularly well rising over 2% for the day.
Thursday, stocks in Asia and Europe followed through with the latest bogus rally in the U.S. gaining 1.3% and 0.6% respectively. In the U.S. we saw a slight gain produce S&P 500 Index record high on low volume. Gold shot up over 3% breaking well above the $1300 per ounce level, and precious metals miners gained almost twice that amount. The VXO collapsed nearly 5% lower to close at 9.18.
Friday, stocks fell in Asia 0.5%, but in Europe and in the U.S. they moved little. The gain in the U.S. was enough to log another all-time high. Volume was high, but not considering it was a quadruple witching day. Volatility fell another 2% to close at 9.07. For the week, stocks soared another 1.3%, the VXO fell 20%, and precious metals miners shot up 7.6%. Most of the action was on Wednesday.