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Another day, another vindication for the 'weakness until the inauguration' hypothesis. As I have said since, it is now setting up to be weak after the inauguration as well.
It is high time that people around the globe worked out that the economy can be neither 'managed' nor 'fixed' by some bunch of scumbags who can only make a living by stealing from others using threats of violence.
Politicians never sound the alarm until after the event, they are more concerned - always - with image rather than effectiveness, and they always try to pretend that they are the solution.
So it's no surprise that they propose 'solutions' that enhance control of the state over its livestock: as if we got to this pass because of the absence of cronyism and corruption.
Government is the ultimate corrupter of the human will - because it encourages normal people who would never think of stealing of bullying, into thinking that it is perfectly acceptable to force others to do things because 'we all voted'.
What if 50.01% of us voted for a government that then decided to slaughter all redheads? What if 50.01% of us voted for a government that then decided that 'all you babies are belong to us'?
Democracy is thuggery writ large: it is the banalisation of absolute evil and tyranny.
Unlike other anti-democrats, I am not a believer in a class of 'natural aristocrats': I think all us smelly oafs (oaves?) should be able to do whatever we want to do without let or hindrance, so long as we do not do yukky stuff to others.
So we should be allowed to fill our own bodies (which we own by right) with drugs, and bear the consequences. We should be able to erect any structure on land we own, without encumbrance. We should be able to buy or sell any good or service for which we can find a willing counterparty. And we should not be constrained by passports nor borders - we are not chattels of the state in which we are born or reside, and national frontiers are fake lines drawn by megalomaniacs with massive insecurity complexes, all of whom should be killed.
If some subset of a population wants to combine and fund a "society" or any other organisation to protect its rights, such an association must be voluntary, funded with voluntary contributions, and having no power over anybody who does not subscribe (except that the association has the right to expel non-contributors who aggress against its members).
Related to this is my opposition to any Bill of Rights: within two decades of its promulgation, any Bill of rights will be interpreted as the exhaustive list of the rights which must be protected - by store-bought judges who owe their careers to a chummy relationship with the political class. All rights not specifically enumerated would be at risk - and would eventually be lost. just look at the US bill of rights - which even says that it is not exhaustive, and that powers not specifically enumerated vest in the people.But back to the markets...
Notice that Citigroup is now heading back towards (and probably below) $5 - it was manipulated upwards for the close of 2008, simply so that portfolio managers could continue to hold it... because without institutional shareholding support, Citigroup would fail.
Economic News
Nothing today - although this week is very data-heavy; no less than 19 market-moving pieces of data are slated for release between now and Friday.
That said, it is becoming essential to hold a subscription to a 'data de-bullshitting' service, due to the propensity of the parasite political class to simply resort to lies whenever the facts aren't convenient (see: "Hamas started it"; "Iraq has reconstituted nuclear weapons"; "The hate us because we're free" and so on back to the breach of the Black Hills treaty).
Take last week's employment report - which showed unemployment at 7.2%. That's using the post-1980 methodology. Using the old methodology (to enable direct comparison with prior periods of rising unemployment) the rate is actually closer to 18%.
So t hat is why things feel much dicier than the official stats suggest: to put it bluntly, governments lie. The bigger the problem, the bigger the lie.
Headline Indices
The Dow Jones Industrial Average fell 125.21 points (1.46%) to 8473.97 points. The index high for the day was 8602.60, while the low was 8421.24 (set 25 minutes before the close). the Dow still could not resist a 50-point rally in thelast half-hour... I keep saying it: nobody is really bearish: everybody thinks that there is going to be a fluffy bunny ulled from the hat at some stage.
Total volume traded in the 30 components of the index was 1.02bn shares. Decliners outpaced gainers by 6.5 to one, with 26 decliners to 4 advancers. Declining volume was greater than advancing volume by 975.43m to 41.71m shares. The main decliners (in percentage terms) were -
- Citigroup (C) -1.15 (17%) to $5.60 on volume of 292.63m shares;
- Bank Of America (BAC) -1.56 (12%) to $11.43 on volume of 120.64m shares;
- Alcoa (AA) -0.75 (6.9%) to $10.06 on volume of 30.39m shares;
- AIG (AIG) -0.08 (4.9%) to $1.54 on volume of 30.86m shares; and
- Caterpillar (CAT) -2.01 (4.7%) to $41.19 on volume of 9.5m shares.
The S&P500 index (SPX) fell 20.09 points (2.26%) to 870.26 points. Total volume traded in the 500 components of the index was 3.62bn shares. Decliners outpaced gainers by 6.2 to one, with 413 decliners to 67 advancers. Declining volume was greater than advancing volume by 3.22bn to 342.84m shares. The main decliners (in percentage terms) were -
- Developers Diversified Realty (DDR) -1.62 (21.2%) to $6.02 on volume of 5.98m shares;
- General Growth Properties (GGP) -0.35 (19.1%) to $1.48 on volume of 11.93m shares;
- Hartford Financial Svc.Gp. (HIG) -3.38 (18.6%) to $14.78 on volume of 18.08m shares;
- MGIC Investment (MTG) -0.7 (17.1%) to $3.40 on volume of 2.61m shares; and
- Citigroup Inc. (C) -1.15 (17%) to $5.60 on volume of 292.63m shares.
The Nasdaq Composite declined 32.8 points (2.09%) to 1538.79 points. while the Nasdaq100 dipped 21.88 points (1.79%) to 1201.13 points. Total volume traded in the 100 components of the Nasdaq100 was 759.3m shares. Decliners outpaced gainers by 8.7 to one, with 87 decliners to 10 advancers. Declining volume was greater than advancing volume by 703.51m to 50.9m shares. The main decliners (in percentage terms) were -
- Level 3 Communications (LVLT) -0.28 (18.8%) to $1.21 on volume of 27.65m shares;
- NII Holdings (NIHD) -3.26 (13.9%) to $20.27 on volume of 2.47m shares;
- Steel Dynamics (STLD) -1.39 (11.1%) to $11.08 on volume of 6.56m shares;
- Garmin (GRMN) -2.1 (10.3%) to $18.27 on volume of 2.64m shares; and
- Foster Wheeler (FWLT) -2.42 (9.2%) to $23.89 on volume of 3.04m shares.
Volatility
The CBOE Volatility Index advanced +3.02 points (7.05%) to 45.84 points. and the CBOE Nasdaq100 Volatility Index gained +0.62 points (1.41%) to 44.46 points..
Breadth and Internals
A total of 3866 issues traded today on the NYSE; 899 stocks posted gains for the day, and there were 2880 losers. 11 stocks made new 1-year highs on the NYSE, while 61 shares plumbed new 52-week depths.
On the Nasdaq 2907 tickers traded today; total Nasdaq volume was 1.76bn shares. A total of 684 stocks posted gains for the day, with aggregate volume of 220m shares changing hands in the day's winners. The red zone of the Nasdaq exchange comprised 2121 losers, and total declining volume was 1.53bn shares. 4 Nasdaq-listed stocks hit new 52-week highs, while 43 shares dipped to new 1-year lows.
| Major Market Statistics | |||
| Index | Close | Gain(Loss) | % |
| Dow Jones Industrial Average | 8473.97 | -125.21 | -1.46% |
| S&P500 Index | 870.26 | -20.09 | -2.26% |
| Nasdaq Composite | 1538.79 | -32.80 | -2.09% |
| Nasdaq100 | 1201.13 | -21.88 | -1.79% |
| CBOE Volatility Index | 45.84 | +3.02 | 7.05% |
| CBOE Nasdaq100 Volatility Index | 44.46 | +0.62 | 1.41% |
Dow Darlings
- General Motors (GM) +0.12 (3%) to $4.15 on volume of 14.1m units
- IBM (IBM) +1.01 (1.2%) to $85.71 on volume of 7.9m units
- McDonalds (MCD) +0.09 (0.1%) to $60.16 on volume of 8.6m units
- Procter & Gamble (PG) +0.08 (0.1%) to $59.94 on volume of 11.2m units
Dow Duds:
- Citigroup (C) -1.15 (17%) to $5.60 on volume of 292.7m units
- Bank Of America (BAC) -1.56 (12%) to $11.43 on volume of 120.6m units
- Alcoa (AA) -0.75 (6.9%) to $10.06 on volume of 30.4m units
- Caterpillar (CAT) -2.01 (4.7%) to $41.19 on volume of 9.5m units
- JPMorganChase (JPM) -1.06 (4.1%) to $24.91 on volume of 58.1m units
Most Traded Dow stocks:
- Citigroup (C) -1.15 (17%) to $5.60 on volume of 292.7m units
- Bank Of America (BAC) -1.56 (12%) to $11.43 on volume of 120.6m units
- General Electric (GE) -0.17 (1.1%) to $15.83 on volume of 61.7m units
- JPMorganChase (JPM) -1.06 (4.1%) to $24.91 on volume of 58.1m units
- Intel (INTC) -0.36 (2.5%) to $13.79 on volume of 53.4m units
Precious Metals
The Gold Bugs index (XAU) lost 7.61 points (6.64%) to 106.92 points. Total volume traded in the 16 components of the index was 114.65m shares. None of the 16 index components rose today: 16 stocks within the index fell, with downside volume of 114.65m shares. The main decliners (in percentage terms) were -
- Pan-American Silver (PAAS) -2.25 (12.6%) to $15.55 on volume of 2.01m shares;
- Freeport McMoran (FCX) -3.31 (11.5%) to $25.44 on volume of 20.18m shares;
- RandGold Resources (GOLD) -4.05 (9.9%) to $36.76 on volume of 1.56m shares;
- Silver Wheaton (SLW) -0.61 (9.9%) to $5.56 on volume of 7.2m shares; and
- Yamana Gold (AUY) -0.6 (8.5%) to $6.43 on volume of 13.42m shares.
Energy Complex
The Oil Services index (OSX) dropped 6.39 points (4.95%) to 122.72 points. Total volume traded in the 15 components of the index was 85.98m shares. None of the 15 index components rose today: 15 stocks within the index fell, with downside volume of 85.98m shares. The main decliners (in percentage terms) were -
- Weatherford International (WFT) -0.99 (7.7%) to $11.82 on volume of 10.05m shares;
- Transocean Inc (RIG) -3.97 (7.3%) to $50.53 on volume of 10.91m shares;
- Global Industries (GLBL) -0.24 (6.5%) to $3.47 on volume of 1.09m shares;
- BJ Services (BJS) -0.75 (6.2%) to $11.35 on volume of 4.73m shares; and
- Halliburton (HAL) -1.08 (5.7%) to $17.93 on volume of 16.3m shares.
Bellwethers
The nine-stock group that makes up the Rant bellwethers declined on average by 3.7%. The fallout occurred as follows:
- General Electric (GE) -0.17 (1.06%) to $15.83 on volume of 61.68m units.
- Citigroup (C) -1.15 (17.04%) to $5.60 on volume of 292.65m units.
- Wal-Mart (WMT) -0.19 (0.37%) to $51.39 on volume of 18.24m units.
- IBM (IBM) +1.01 (1.19%) to $85.71 on volume of 7.87m units.
- Intel (INTC) -0.36 (2.54%) to $13.79 on volume of 53.44m units.
- Cisco Systems (CSCO) -0.3 (1.8%) to $16.40 on volume of 54.13m units.
- Google (GOOG) -2.38 (0.76%) to $312.69 on volume of 3.28m units.
- Fannie Mae (FNM) -0.03 (4.05%) to $0.71 on volume of 14.64m units.
- Freddie Mac (FRE) -0.05 (6.58%) to $0.71 on volume of 10.21m units.
Other Indices of Interest...
The Banks index (BKX) dipped 2.43 points (6.1%) to 37.42 points. Total volume traded in the 24 components of the index was 659.37m shares. None of the 24 index components rose today: the main decliners (in percentage terms) were -
- Citigroup Inc (C) -1.15 (17%) to $5.60 on volume of 292.63m shares;
- Bank Of America (BAC) -1.56 (12%) to $11.43 on volume of 120.64m shares;
- Huntington Bancshares (HBAN) -0.63 (9.5%) to $6.01 on volume of 11.66m shares;
- Comerica Inc (CMA) -1.67 (9.3%) to $16.23 on volume of 5.81m shares; and
- Fifth Third Bancorp (FITB) -0.62 (8.3%) to $6.87 on volume of 14.75m shares.
The Semiconductor index (SOX) dipped 6.19 points (2.88%) to 209.09 points. Total volume traded in the 18 components of the index was 207.99m shares. None of the 18 index components rose today: the main decliners (in percentage terms) were -
- Advanced Micro Devices (AMD) -0.17 (6.3%) to $2.52 on volume of 13.05m shares;
- Infineon Tech (IFX) -0.07 (5.6%) to $1.18 on volume of 0.79m shares;
- Altera (ALTR) -0.8 (5.1%) to $15 on volume of 11.19m shares;
- ST Microelectronic (STM) -0.33 (5%) to $6.21 on volume of 1.87m shares; and
- Sandisk (SNDK) -0.61 (5%) to $11.69 on volume of 5.94m shares.
The ChildKiller ("Defence") index (DFX) fell -5.36 points (2%) to 263.31 points. Total volume traded in the 17 components of the index was 86.08m shares. Decliners outpaced gainers by 7 to one, with 14 decliners to 2 advancers. Declining volume was greater than advancing volume by 81.34m to 4.74m shares. The main decliners (in percentage terms) were -
- Gencorp (GY) -0.39 (11.1%) to $3.11 on volume of 0.68m shares;
- Embraer Empresa (ERJ) -0.88 (4.8%) to $17.4 on volume of 0.62m shares;
- Esterline Tech (ESL) -1.07 (2.8%) to $36.57 on volume of 0.27m shares;
- ITT Corporation (ITT) -1.32 (2.7%) to $47.08 on volume of 1.07m shares; and
- FLIRr Systems (FLIR) -0.54 (1.8%) to $29.99 on volume of 1.39m shares.
