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This is getting boring - massive late-day rallies that appear from nowhere, that are absolutely indiscriminate as to price, and that change absolutely nothing as far as the end-game is concerned.
We get it, America - your government is trying to decide the level of the major stock indices. But guess what? If the people running the government were any sort of dab hand at private sector finance, they would not have to suckle at the public teat.
Today, the S&P broke to its lowest intraday low since 1996 (it did that yesterday too); at 3 p.m. it looked quite possible that it markets would break down further, despite it being Friday afternoon.
And then the Dow rose 150 points in 4 minutes.
What changed? I hear you ask.
The only answer that any newswire could come up with: that the incoming cabinet will have a Fed shill heading up the rape of taxpayers - this Geithner twerp from the NY Fed. This mensch will replace Hank "Mr Hankie" Paulson, so perhaps the betting was "The new guy could not do a worse job than the schmuck who's there now".
So they are putting one of the US's chief crack dealers in charge of raping people's paypackets. (And let's not forget, he will also oversee the distribution of all that pelf hidden under the TARP).
That fact, it would appear, was considered as being 'worth' almost 600 Dow points. Working from the 3p.m. level on the Dow, that represents a 7-and-a-bit percent revaluation - in an hour.
Sorry, but no sale. There was only The Cancer Fairy buying, yet again.
Why is that obvious? Simple - every time the government buyer stopped buying, the Dow would fall 100-150 points in a minute and a half.
I kid you not - if you examine the chart segment below, you will see two little red slashes that I've added to illustrate. Each one represents the decline that occurred when the PPT stopped to see if their buying had generated any significant follow-through. In the end, it was the PPT that bought all the way up to 8000. In fact, the last 150 points took place in the last eight minutes of trade.
Dow 15-minute intraday chart (extract)
Don't fret, dear Reader - we have not missed the bottom. In fact it has been several days since the market actually made a higher low... and we need a higher low in order for the daily chart to finally print a CCI divergence. So we will get a replay of the last 3 eye-popping fake rallies... and we will make a new low, probably next week.
These government-sponsored rallies don't frustrate or annoy me, but I do admit to being highly entertained when they fail and we all get to drink in the smell of burning Hope.
You might think me cruel for getting a kick out of seeing the hopes of millions dashed, That's not the case: the only hopes that deserve to be crushed, are those of people who don't bother to do their due diligence. People who blindly accept whatever they are told by whatever parasite is doing the talking: in fact we should redefine their behaviour - it's not hope, it's just herd idiocy.
So do not mistake me for someone who lives off garmonbozia (like Dick 'dick' Cheney, or my cousin Yahweh with his bizarre fetish for the smell of burning animal entrails). I like to see false Hope slaughetered and fed to pigs.
Economic News
Nada.
Headline Indices
The Dow Jones Industrial Average surged 494.13 points (6.54%) to 8046.42 points. The index high for the day was 8071.43, while the low was 7449.38.
The Dow Jones Industrial Average index (DJI) contains 30 components; the total volume traded in the index was 2.74bn units. Within the index, 28 issues rose, and just 2 fell. Advancing volume was of 1.5bn units; declining volume was a staggering 1.2bn units (over a billion of that was in Citigroup, whic declined another 20%).
Contributing to the advance were -
- Alcoa (AA) +1.59 (23.2%) to $8.44 on volume of 46.94m shares;
- Disney Corp (DIS) +2.39 (12.8%) to $21.12 on volume of 27.73m shares;
- Microsoft (MSFT) +2.15 (12.3%) to $19.68 on volume of 155.24m shares;
- AIG (AIG) +0.16 (11.1%) to $1.6 on volume of 92.36m shares; and
- Exxon-Mobil (XOM) +7.3 (10.7%) to $75.81 on volume of 81.59m shares.
The S&P500 Index advanced +47.59 points (6.32%) to 800.03 points; the total volume traded in the index was 7.7bn units. Within the index, 437 issues rose, with aggregate volume of 5.7bn shares; 51 issues fell, with aggregate volume of 2.02bn units.
Contributing to the advance were -
- ProLogis (PLD) +0.76 (33.3%) to $3.04 on volume of 18.74m shares;
- Unisys Corp. (UIS) +0.11 (28.9%) to $0.49 on volume of 4.28m shares;
- Gap (The) (GPS) +2.59 (27.2%) to $12.1 on volume of 24.83m shares;
- Lincoln National (LNC) +1.29 (25.4%) to $6.36 on volume of 14.18m shares; and
- Newmont Mining Corp. (Hldg. Co.) (NEM) +5.79 (25.2%) to $28.79 on volume of 18.81m shares.
The Nasdaq Composite advanced 68.23 points (5.18%) to 1384.35 points, and the Nasdaq100 gained 49.06 points (4.73%) to 1085.57 points.
The Nasdaq100 index (NDX) contains 100 components; the total volume traded in the index was 1.47bn units. Within the index, 82 issues rose, with aggregate volume of 1.24bn units; 13 issues fell, with aggregate volume of 151.49m units.
Contributing to the advance were -
- Flextronics International (FLEX) +0.39 (24.4%) to $1.99 on volume of 20.84m shares;
- Steel Dynamics (STLD) +0.87 (16.6%) to $6.1 on volume of 8.65m shares;
- Foster Wheeler (FWLT) +2.21 (15.8%) to $16.24 on volume of 7.68m shares;
- Joy Global (JOYG) +2.34 (15.4%) to $17.55 on volume of 5.88m shares; and
- Lam Research (LRCX) +2.35 (15.2%) to $17.82 on volume of 5.93m shares.
Volatility
The CBOE Volatility Index lost 8.19 points (10.13%) to 72.67 points and the CBOE Nasdaq100 Volatility Index lost 9.44 points (11.71%) to 71.20 points..
Breadth and Internals
A total of 3782 issues traded today on the NYSE; today's total volume was 6.63bn shares. A total of 2380 stocks posted gains for the day, and volume in advancing issues totalled 3.44bn shares. Exerting downwards pressure on the index were 1344 losers, which accounted for a total declining volume of 2.76bn shares (of which Citigroup was over 1 billion). 43 stocks made new 1-year highs on the NYSE, while 1349 shares plumbed new 52-week depths.
On the Nasdaq 3056 tickers traded today; total Nasdaq volume was 3.07bn shares. A total of 1777 stocks posted gains for the day, with aggregate volume of 2.45bn shares changing hands in the day's winners. The red zone of the Nasdaq exchange comprised 1170 losers, and total declining volume was 520m shares. 4 Nasdaq-listed stocks hit new 52-week highs, while 1226 shares dipped to new 1-year lows.
In other words, on almost all internal and breadth measures, today looked more like behaviour we associate wit ha market top.
| Major Market Statistics | |||
| Index | Close | Gain(Loss) | % |
| Dow Jones Industrial Average | 8046.42 | +494.13 | 6.54% |
| S&P500 Index | 800.03 | +47.59 | 6.32% |
| Nasdaq Composite | 1384.35 | +68.23 | 5.18% |
| Nasdaq100 | 1085.57 | +49.06 | 4.73% |
| CBOE Volatility Index | 72.67 | -8.19 | -10.13% |
| CBOE Nasdaq100 Volatility Index | 71.20 | -9.44 | -11.71% |
Dow Darlings
- Alcoa (AA) +1.59 (23.2%) to $8.44 on volume of 47m units
- Disney Corp (DIS) +2.39 (12.8%) to $21.12 on volume of 27.7m units
- Microsoft (MSFT) +2.15 (12.3%) to $19.68 on volume of 155.3m units
- Exxon-Mobil (XOM) +7.3 (10.7%) to $75.81 on volume of 81.6m units
- Chevron (CVX) +6.09 (9.5%) to $70.49 on volume of 33.5m units
Dow Duds:
- Citigroup (C) -0.94 (20%) to $3.77 on volume of 1020.9m units
- JPMorganChase (JPM) -0.66 (2.8%) to $22.72 on volume of 191.7m units
Most Traded Dow stocks:
- Citigroup (C) --0.94 (20%) to $3.77 on volume of 1020.9m units
- Bank Of America (BAC) +0.22 (2%) to $11.47 on volume of 227.1m units
- JPMorganChase (JPM) --0.66 (2.8%) to $22.72 on volume of 191.7m units
- General Electric (GE) +1.19 (9.3%) to $14.03 on volume of 170.9m units
- Microsoft (MSFT) +2.15 (12.3%) to $19.68 on volume of 155.3m units
Precious Metals
Precious metals futures went berserk... finally.
| Precious Metals Futures | |||
| Index | Close | Gain(Loss) | % |
| Gold | 800 | 51.3 | 6.85 |
| Silver | 9.63 | 0.605 | 6.7 |
| Palladium | 180.85 | 1.4 | 0.78 |
| Platinum | 828.6 | 38.5 | 4.87 |
The Gold Bugs index (XAU) contains 16 components, and today every last one of them was a gainer; the total volume traded in the index was 217.77m units.
Today the index rose by 18.72 points (26.71%) to 88.8 points. Contributing to the advance were -
- AngloGold Ashanti (AU) +5.9 (43%) to $19.61 on volume of 5.29m shares;
- Coeur d'Alene (CDE) +0.14 (38.9%) to $0.5 on volume of 14.03m shares;
- Gold Fields Ltd (GFI) +1.97 (37%) to $7.3 on volume of 14.07m shares;
- Barrick Gold (ABX) +6.45 (31.3%) to $27.05 on volume of 34.32m shares; and
- Pan-American Silver (PAAS) +2.8 (30.1%) to $12.1 on volume of 2.31m shares.
Energy Complex
Energy futures were stronger across the board -
| Energy Futures | |||
| Commodity | Close | Gain(Loss) | % |
| Crude Oil | 50.4 | 0.98 | 1.98 |
| Heating Oil | 1.7166 | 0.0301 | 1.78 |
| Natural Gas | 6.507 | 0.191 | 3.02 |
| Gasoline RBOB | 1.0735 | 0.0665 | 6.6 |
| Ethanol | 1.578 | -0.065 | -3.96 |
The Oil Services index (OSX) contains 15 components; the total volume traded in the index was 167.06m units. All 15 index components rose for the day.
Today the index rose by 10.32 points (9.79%) to 115.73 points. Contributing to the advance were -
- National Oilwell Varco (NOV) +3.66 (20.5%) to $21.52 on volume of 15.57m shares;
- Nabors Industries (NBR) +1.63 (15.9%) to $11.85 on volume of 10.62m shares;
- BJ Services (BJS) +1.37 (15.6%) to $10.13 on volume of 10.35m shares;
- Halliburton (HAL) +1.87 (13.9%) to $15.33 on volume of 24.9m shares; and
- Schlumberger (SLB) +5.4 (13.6%) to $45 on volume of 22.98m shares.
Currency Futures
Currency futures did us OK - the exhortation to buyy the AUD (look in the Currencies section of yesterday's USRant) made us a few hundred bucks in the session.
| Currency Futures | |||
| Index | Close | Gain(Loss) | % |
| U.S. Dollar Index | 88.02 | -0.275 | -0.31 |
| Euro FX | 1.2496 | -0.0004 | -0.03 |
| Swiss Franc | 0.8175 | -0.0006 | -0.07 |
| Australian Dollar | 0.6168 | 0.0055 | 0.9 |
| Canadian Dollar | 0.7769 | -0.0013 | -0.17 |
| Japanese Yen | 1.0502 | -0.0059 | -0.56 |
| New Zealand Dollar | 0.526 | 0.0007 | 0.13 |
Bellwethers
The nine-stock group that makes up the Rant bellwethers declined on average by 1.6%, due to Fannie, Freddie and Citigroup. The fallout occurred as follows:
- General Electric (GE) +1.19 (9.27%) to $14.03 on volume of 170.9m units.
- Citigroup (C) -0.94 (19.96%) to $3.77 on volume of 1020.93m units.
- Wal-Mart (WMT) +2.26 (4.46%) to $52.92 on volume of 39.76m units.
- IBM (IBM) +3.14 (4.38%) to $74.88 on volume of 19.37m units.
- Intel (INTC) +0.88 (7.2%) to $13.11 on volume of 102.9m units.
- Cisco Systems (CSCO) +0.70 (4.84%) to $15.17 on volume of 103m units.
- Google (GOOG) +2.87 (1.11%) to $262.43 on volume of 10.18m units.
- Fannie Mae (FNM) -0.03 (9.09%) to $0.30 on volume of 42.57m units.
- Freddie Mac (FRE) -0.08 (16.33%) to $0.41 on volume of 16.96m units.
Other Indices of Interest...
The Banks index (BKX) contains 24 components; the total volume traded in the index was 1926.74m units. Within the index, 14 issues rose, with aggregate volume of 487.15m units; 9 issues fell, with aggregate volume of 1439.59m units.
Today the index rose by 0.19 points (0.52%) to 36.91 points. Contributing to the advance were -
- State Street (STT) +3.09 (10.8%) to $31.78 on volume of 7.88m shares;
- New M&I Corporation (MI) +1.2 (10.1%) to $13.06 on volume of 9.5m shares;
- Northern Trust (NTRS) +3.45 (10%) to $37.94 on volume of 4.11m shares;
- BB&T Corp (BBT) +1.65 (7.2%) to $24.71 on volume of 12.57m shares; and
- Capital One Financial (COF) +1.64 (6.5%) to $26.83 on volume of 13.78m shares.
The Semiconductor index (SOX) contains 18 components; the total volume traded in the index was 331.46m units. Within the index, 17 issues rose, with aggregate volume of 308.76m units; 1 stock fell, with aggregate volume of 22.7m units.
Today the index rose by 8.9 points (5.19%) to 180.22 points. Contributing to the advance were -
- Taiwan Semiconductor (TSM) +0.66 (11.3%) to $6.51 on volume of 23.63m shares;
- Micron Technology (MU) +0.18 (10.7%) to $1.87 on volume of 25.42m shares;
- KLA-Tencor Cp (KLAC) +1.38 (9.1%) to $16.57 on volume of 6.95m shares;
- Infineon Tech (IFX) +0.16 (7.9%) to $2.18 on volume of 3.43m shares; and
- Intel (INTC) +0.88 (7.2%) to $13.11 on volume of 102.9m shares.
The ChildKiller ("Defence") index (DFX) contains 17 components; the total volume traded in the index was 229.29m units. Al l117 components rose.
Today the index rose by 14.3 points (6.76%) to 225.99 points. Contributing to the advance were -
- Esterline Tech (ESL) +3.23 (12.4%) to $29.2 on volume of 0.31m shares;
- Northrop Grummanl (NOC) +3.73 (10.9%) to $37.93 on volume of 4.81m shares;
- Gencorp (GY) +0.2 (10.1%) to $2.18 on volume of 0.49m shares;
- Embraer Empresa (ERJ) +1.16 (9.4%) to $13.46 on volume of 1.43m shares; and
- General Electric (GE) +1.19 (9.3%) to $14.03 on volume of 170.89m shares.
