Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.
L et's survey the landscape, in a bid to explain the 900-plus point reversal today in US markets. There was no seminal event that happened at 1 p.m. NY time, so we have to look elsewhere.
Some of the recent headlines (without being deliberately negative:...
- New jobless claims rise to 516,000 (a half million jobs lost in a week);
- Wal-Mart cuts sales forecast and earnings guidance;
- Merrill CEO Thain: Echoes of 1929;
- Foreclosures up 25%: RealtyTrac;
- Intel cuts guidance, Dell, HP estimates slashed;
- Chrysler CEO Nardelli: Mayday! Mayday!;
- October US Govt budget deficit: 237bn (for a MONTH);
- Goldman caught dissing its own underwriting (typical)...
The last time this happened (October 28th, when the S&P rose from 860 to 940 in two and a half hours), I opined as follows when the bounce that ensued in the Strayan markets didn't 'stick' ...
From time to time it's nice to see global markets reject the whackery that emanates from the Retarded Soviet Union of America. Anybody who looked at an intraday Dow chart before the open of the Asian session must have wondered why Wall Street handed control to the passengers on the Special Bus.
Seriously - can you think of anything that changed yesterday at 2 p.m. (NY time) that made the Dow components suddenly become 'must have' investments?
Nah - didn't think so. And yet the Dow rose 700 points in the last two hours of trade.
In the Strayan market, the usual nuffie stampede occurred - stock nuffnuffs with the collective intelligence of a brain-damaged Frenchman, piled in for one reason and one reason only... the US went up strongly.
We all know what happens to people who join in the nuffie orgasm and dive in at the ASX open... they get gutted like fish. And today the trail of gizzards began just before noon, and Crom only knows how the market managed to stay in the green by the end of the day.
This time it's no different... chase this spike at your peril.
So who was the Mystery Buyer? No prizes for guessing: it was The Cancer Fairy - the US government. Anyone who tells you otherwise is full of shit.
The bounce will bring coos and trills of delight from the media whores who make their money by repeating exactly what they're told to repeat. It will be billed as investors being attracted by low low prices. Just like a Demtel ad.
One thing you've got to ask yourself - if these supposed 'investors' were canny buggers who were acting all conservative and waiting until prices dipped, why did they then abandon all price sensitivity once they began buying? It's like someone who saves for their retirement for years, then goes and blows it all on hookers and cocaine the day after he turns 65.Like all gifts from the Cancer Fairy, this 'rebound' was performed in order to help one of the US government's cronies (I'm looking at you, Citigroup - but Goldman is also looking into the abyss). The Cancer Fairy dosed the market up with crystal meth, creating a short squeeze in order to try and prevent C and GS from sliding before the inside money can fully extricate itself. (Notice that C was still down 2% - in a market where a tennis shoe would have closed with a gain).
That's what life is like when you live in a corrupt kleptocracy: ask anyone who lived under the French monarchy - people's tax dollars were used by a series of effeminate short-arses, to build bad-taste monuments to their own debauchery. And so on to today's History...
History.
Subsequent to the reign of a bunch of make-up and high-heel wearing bum-bandits, France off'd their heads and then installed a procession of corrupt short-arses. This second bunch of midgets chose a different mechanism to waste tax dollars: they started fights that their armed forces weren't capable of finishing.
So the new government wasted tax dollars by losing major battles then erecting monuments to the defeats... like (in no particular order)
- "La Défense" or as we Anglo-Saxons would call it, "la DEFEAT" - by the Prussians in the Franco-Prussian War of 1870... the French Government surrendered on January 27th 1871.. so as a 'defence' La Defense was a failure ;
- l'Arc de "Triomphe" or as we AngloSaxons would call it, "l'Arc de DEFEAT": by Britain and Russia and just about everyone else in Europe... Russian soldiers take Paris in 1814 and the word 'Bistro' enters the language (it is Russian for "Hurry up"). I guess that could count as a 'triumph', if you've got low expectations.
There is no monument to the fact that the French government ran away from their capital in 1914 when the Krauts were 30 miles from Paris (after a whole 32 days of war... about the usual time it takes for France to lose it's whole territory).
I keep thinking "maybe we'll lay off the Frogs for a couple of days... it's ever-so-slightly ignoble to pick on retarded short people who start fights they can't finish".
Then I think "Nah... bugger 'em; Australia wasted so much blood saving France (along with our Anglo-Saxon cousins) - we earned the right to call the French military a joke. We should have left them to the Krauts."
One thing is sure: if the Anglo-Saxons of the world had not stepped in to save France (twice), Sarkozy would not be President (or gauleiter, since it would be a German administrative department). You see, his family would still be living in a Hungarian hovel among his Khazar kin... his family was only able to start passing themselves off as aritsocrats after stealing property in the mayhem after the collapse of the Austro-Hungarian Empire.
OK... now back to Finance...
Economic News
Oh, there was just so much economic news... all of it bad. I've alluded to the bulk of it above. Apart from that the Trade Balance was awful (at abut $60bn)... imports and exports both fell (but the net result was still a trade deficit of about $2 billion a day).
Fed Open Market Operations
This is going to be the last time I bother with the repo news for a while - the Fed' term facilities and other pieces of corrupt chicanery are far far larger in dollar terms, and they swamp any effect of the repo market.
The Fed's Open Market Operations desk performed another liquidity drain - a 1 Day reverse repurchase totalling $25bn, entirely in Treasury-backed collateral.
Headline Indices
The Dow Jones Industrial Average advanced 552.59 points (6.67%) to 8835.25 points. The index high for the day was 8872.85, while the low was 7969.24. Yep - a 905 point trading range (although during the bounce it did not 'trade' in that range - it was up up up up up up up up...
The Dow Jones Industrial Average index (DJI) contains 30 components; the total volume traded in the index was 1904.77m units. Within the index, 28 issues rose, with aggregate volume of 1582.05m units; 2 issues fell, with aggregate volume of 322.72m units.
Contributing to the advance were -
- Chevron (CVX) +8.43 (12.5%) to $75.71 on volume of 27.4m shares;
- Caterpillar (CAT) +4.33 (12.3%) to $39.41 on volume of 16.77m shares;
- Home Depot (HD) +2.43 (12.3%) to $22.23 on volume of 27.45m shares;
- Alcoa (AA) +1.03 (10.1%) to $11.2 on volume of 31.57m shares; and
- AT&T (T) +2.49 (9.5%) to $28.67 on volume of 44.69m shares.
The S&P500 Index advanced 58.99 points (6.92%) to 911.29 points; the total volume traded in the index was 6.35bn units. Within the index, 465 issues rose, with aggregate volume of 5.7bn units; 23 issues fell, with aggregate volume of 596.87m units.
Contributing to the advance were -
- ProLogis (PLD) +2.37 (53%) to $6.84 on volume of 25.01m shares;
- Genworth Financial Inc. (GNW) +0.53 (53%) to $1.53 on volume of 36.61m shares;
- CB Richard Ellis Group (CBG) +1.62 (43%) to $5.39 on volume of 25.7m shares;
- Office Depot (ODP) +0.64 (35.6%) to $2.44 on volume of 9.4m shares; and
- CIT Group (CIT) +0.88 (26.2%) to $4.24 on volume of 21.44m shares.
The Nasdaq Composite advanced 97.49 points (6.5%) to 1596.70 points and the Nasdaq100 advanced 75.55 points (6.48%) to 1240.93 points..
The Nasdaq100 index (NDX) contains 100 components; the total volume traded in the index was 1.43bn units. Within the index, 92 issues rose, with aggregate volume of 1.31bn units; 6 issues fell, with aggregate volume of 117.5m units.
Today the index rose by 75.55 points (6.48%) to 1240.93 points. Contributing to the advance were -
- UAL (UAUA) +1.67 (17.9%) to $11 on volume of 14.78m shares;
- NetApp (NTAP) +1.75 (16.8%) to $12.14 on volume of 17.08m shares;
- Level 3 Communications (LVLT) +0.13 (16.7%) to $0.91 on volume of 17.47m shares;
- Steel Dynamics (STLD) +1.23 (16.1%) to $8.88 on volume of 7.74m shares; and
- Applied Materials (AMAT) +1.42 (14.3%) to $11.37 on volume of 34.46m shares.
Volatility
The CBOE Volatility Index lost 6.63 points (9.98%) to 59.83 points..
The CBOE Nasdaq100 Volatility Index lost 6.61 points (10.23%) to 58.03 points..
Breadth and Internals
A total of 3645 issues traded today on the NYSE; today's total volume was 3.58bn shares. A total of 2650 stocks posted gains for the day, and volume in advancing issues totalled 2.75bn shares. Exerting downwards pressure on the index were 919 losers, which accounted for a total declining volume of 0.75bn shares. 9 stocks made new 1-year highs on the NYSE, while 685 shares plumbed new 52-week depths.
On the Nasdaq 3004 tickers traded today; total Nasdaq volume was 3bn shares. A total of 2089 stocks posted gains for the day, with aggregate volume of 2.67bn shares changing hands in the day's winners. The red zone of the Nasdaq exchange comprised 799 losers, and total declining volume was 0.32bn shares. 4 Nasdaq-listed stocks hit new 52-week highs, while 731 shares dipped to new 1-year lows.
| Major Market Statistics | |||
| Index | Close | Gain(Loss) | % |
| Dow Jones Industrial Average | 8835.25 | +552.59 | 6.67% |
| S&P500 Index | 911.29 | +58.99 | 6.92% |
| Nasdaq Composite | 1596.70 | +97.49 | 6.5% |
| Nasdaq100 | 1240.93 | +75.55 | 6.48% |
| CBOE Volatility Index | 59.83 | -6.63 | -9.98% |
| CBOE Nasdaq100 Volatility Index | 58.03 | -6.61 | -10.23% |
Dow Darlings
- Chevron (CVX) +8.43 (12.5%) to $75.71 on volume of 27.4m units
- Caterpillar (CAT) +4.33 (12.3%) to $39.41 on volume of 16.8m units
- Home Depot (HD) +2.43 (12.3%) to $22.23 on volume of 27.5m units
- Alcoa (AA) +1.03 (10.1%) to $11.2 on volume of 31.6m units
- AT&T (T) +2.49 (9.5%) to $28.67 on volume of 44.7m units
Dow Duds:
- General Motors (GM) -0.13 (4.2%) to $2.95 on volume of 50.2m units
- Citigroup (C) -0.19 (2%) to $9.45 on volume of 272.5m units
Most Traded Dow stocks:
- General Electric (GE) +0.57 (3.5%) to $16.86 on volume of 299.6m units
- Citigroup (C) --0.19 (2%) to $9.45 on volume of 272.5m units
- Bank Of America (BAC) +0.1 (0.6%) to $17.1 on volume of 193.9m units
- Microsoft (MSFT) +0.95 (4.7%) to $21.25 on volume of 146m units
- Intel (INTC) +0.91 (6.7%) to $14.43 on volume of 142m units
Precious Metals
Precious metals futures were all over the shop - Gold tested $700, setting a low at 700.22.
| Precious Metals Futures | |||
| Index | Close | Gain(Loss) | % |
| Gold | 730.7 | 12.4 | 1.73 |
| Silver | 9.38 | -0.1 | -1.05 |
| Palladium | 216.9 | 0.9 | 0.42 |
| Platinum | 840.1 | 15 | 1.82 |
The Gold Bugs index (XAU) contains 16 components; the total volume traded in the index was 149.7m units. Within the index, all 16 issues rose.
Today the index rose by 9.56 points (12.72%) to 84.71 points. Contributing to the advance were -
- Kinroos Gold (KGC) +2.08 (18.2%) to $13.49 on volume of 13.78m shares;
- Freeport McMoran (FCX) +3.72 (16.7%) to $26.01 on volume of 28.56m shares;
- Coeur d'Alene (CDE) +0.07 (15.2%) to $0.53 on volume of 8.51m shares;
- GoldCorp (GG) +2.86 (14.7%) to $22.31 on volume of 16.99m shares; and
- Agnico Eagle Mines (AEM) +3.64 (12.3%) to $33.25 on volume of 5.89m shares.
Energy Complex
Energy futures were similar to Precious Metals - they were tracking the Dow, and were extremely weak, until the Dow reversed.
| Energy Futures | |||
| Commodity | Close | Gain(Loss) | % |
| Crude Oil | 59.45 | 3.29 | 5.86 |
| Heating Oil | 1.9122 | 0.0768 | 4.18 |
| Natural Gas | 6.429 | 0.024 | 0.37 |
| Gasoline RBOB | 1.3165 | 0.0684 | 5.48 |
| Ethanol | 1.648 | 0.026 | 1.6 |
The Oil Services index (OSX) contains 15 components; the total volume traded in the index was 145.43m units. All 15 index member stocks rose, with aggregate volume of 145.43m units.
Today the index rose by 15.21 points (11.78%) to 144.32 points. Contributing to the advance were -
- Rowan Co (RDC) +2.38 (15.3%) to $17.96 on volume of 4.71m shares;
- Schlumberger (SLB) +6.71 (14.9%) to $51.7 on volume of 19.11m shares;
- Weatherford International (WFT) +1.62 (13.1%) to $14.03 on volume of 20.02m shares;
- Global Industries (GLBL) +0.37 (12.8%) to $3.25 on volume of 1.73m shares; and
- Smith International (SII) +3.34 (12.3%) to $30.47 on volume of 5.45m shares.
Currency Futures
Currency futures performed copntinued their inverse relationship toi the equities markets. Inexplicable as to why the USD is not much weaker, since the US government is bankrupting the country and issuing new debt at a rate of knots - much like the French did when John Law was running his scams.
| Currency Futures | |||
| Index | Close | Gain(Loss) | % |
| U.S. Dollar Index | 86.63 | -1.42 | -1.61 |
| Euro FX | 1.2675 | 0.0186 | 1.49 |
| Swiss Franc | 0.8404 | -0.0023 | -0.27 |
| Soybeans | 894 | -1 | -0.11 |
| Australian Dollar | 0.6503 | 0.0134 | 2.1 |
| Canadian Dollar | 0.815 | 0.007 | 0.87 |
| Japanese Yen | 1.0376 | -0.0096 | -0.92 |
| New Zealand Dollar | 0.5619 | 0.0027 | 0.48 |
Bellwethers
The nine-stock group that makes up the Rant bellwethers advanced on average by 2%. The fallout occurred as follows:
- General Electric (GE) +0.57 (3.5%) to $16.86 on volume of 299.64m units.
- Citigroup (C) -0.19 (1.97%) to $9.45 on volume of 272.53m units.
- Wal-Mart (WMT) +2.31 (4.39%) to $54.93 on volume of 36.99m units.
- IBM (IBM) +4.47 (5.61%) to $84.21 on volume of 14.74m units.
- Intel (INTC) +0.91 (6.73%) to $14.43 on volume of 142.04m units.
- Cisco Systems (CSCO) +0.71 (4.29%) to $17.26 on volume of 89.04m units.
- Google (GOOG) +21.08 (7.24%) to $312.08 on volume of 13.16m units.
- Fannie Mae (FNM) -0.06 (-8.82%) to $0.62 on volume of 21.75m units.
- Freddie Mac (FRE) -0.02 (-2.67%) to $0.73 on volume of 13.82m units.
Other Indices of Interest...
The Banks index (BKX) contains 24 components; the total volume traded in the index was 895.27m units. Within the index, 22 issues rose, with aggregate volume of 622.76m units; 1 issues fell, with aggregate volume of 272.52m units.
Today the index rose by 3.17 points (6.61%) to 51.13 points. Contributing to the advance were -
- Fifth Third Bancorp (FITB) +1.36 (15%) to $10.45 on volume of 14.73m shares;
- National City (NCC) +0.29 (13%) to $2.52 on volume of 37.76m shares;
- Bank Of NY Mellon (BK) +3.71 (12.7%) to $32.9 on volume of 15.98m shares;
- Capital One Financial (COF) +3.52 (11.7%) to $33.56 on volume of 18.6m shares; and
- Keycorp (KEY) +1.08 (11.2%) to $10.69 on volume of 12.91m shares.
The Semiconductor index (SOX) contains 18 components; the total volume traded in the index was 379.93m units. Within the index, 17 issues rose, with aggregate volume of 343.87m units; 0 issues fell, with aggregate volume of 0m units.
Today the index rose by 14.36 points (7.15%) to 215.15 points. Contributing to the advance were -
- Applied Materials (AMAT) +1.42 (14.3%) to $11.37 on volume of 34.46m shares;
- Infineon Tech (IFX) +0.3 (10.8%) to $3.09 on volume of 1.8m shares;
- National Semiconductor (NSM) +1.04 (9.2%) to $12.37 on volume of 11.23m shares;
- Broadcom (BRCM) +1.36 (9.1%) to $16.35 on volume of 13.99m shares; and
- Altera (ALTR) +1.24 (8.4%) to $15.97 on volume of 10.41m shares.
The ChildKiller ("Defence") index (DFX) contains 17 components; the total volume traded in the index was 358.29m units. Within the index, 14 issues rose, with aggregate volume of 348.44m units; 2 issues fell, with aggregate volume of 9.79m units.
Today the index rose by 12.28 points (5.1%) to 253.14 points. Contributing to the advance were -
- Esterline Tech (ESL) +3.57 (11.5%) to $34.59 on volume of 0.3m shares;
- FLIRr Systems (FLIR) +3.02 (10.5%) to $31.81 on volume of 2.26m shares;
- ITT Corporation (ITT) +3.4 (8.8%) to $42.23 on volume of 2.35m shares;
- Rockwell Collins (COL) +2.32 (7.3%) to $34.17 on volume of 1.36m shares; and
- Teledyne Tech (TDY) +2.83 (6.8%) to $44.34 on volume of 0.35m shares.
