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You have no excuse to have failed to jump on this week's rather splendiferous rally, dearest Reader. Your Beloved GT told you about it on Monday (in "Why So Glum? We're Gonna Rally"), and even pointed out the best vehicle to exploit the rally (the DAX)... and even gave you the time of day at which to enter (the first hour of the German session on Monday night).
Sure, the Strayan market didn't do the business this week, but the DAX went absolutely berserk: it closed above 4600; the entry post ("DAXRant: Here's the Bad Ball...") was posted with the DAX at 4287.5 and the DAX kept falling for another two hours thereafter - giving everyone the chance to hop aboard.
As I said at the time:
Last week I mentioned that you had to wait for the bad ball, and put it away... well, the Krauts have brought on a medium-pacer who is bowling half-track lollies with 6 men inside the circle.
Take a look at the DAX chart... the dumb money is at work shorting the black off the DAX: no need to wait for 'early weakness', since the DAX is putting in its low today (or you may call me Meyer, as Goering once quipped).
Obviously there will be a catch-up bounce in the Strayan markets on Monday... which may present a good shorting opportunity for SPISpyers.
The US markets did the business as well - after a weakish Monday (the Dow closed at 7936), the job of skinning all those new-found nuffnuff shorts from last Friday commenced in earnest later in the week... and the Dow closed up 280 points for the week.
To put the DAX call in perspective: if you had bought and held DAX futures for the entire week, starting just after DAXRant was posted, the gain was 374.5 DAX points, at €25 per point... which turns out to be a bit over A$18,725 for the week at current exchange rates.
As you are aware, I don't like finishing a session with contracts in hand, so I did not ride the DAX for the whole week; I was satisfied with adding roughly 10% to the account for the week - working the ball between mid-wicket and mid-off, with the occasional lofted off-drive when the field is up. (Obviously this cricket stuff means nothing to Americans, because they come from an utterly backward culture incapable of comprehending the beauty of cream trousers with a great red stain on the 'non-dressing' side of the fly).
Economic News
Like I said - not interested. Next week. Suffice it to say it was all horrible.
Headline Indices
The Dow Jones Industrial Average rose 217.52 points (2.7%) to 8280.59 points. The index high for the day was 8312.37, while the low was 8052.24.
The Dow Jones Industrial Average index (DJI) gained 217.52 points (2.7%) to 8280.59 points. Total volume traded in the 30 components of the index was 1.91bn shares. Advancers outpaced decliners by 29 to one, with 29 advancers to 1 decliners. Advancing volume exceeded declining volume by 1.9bn to 9.71m shares. The biggest gainers (percentage-wise) were the usual dross that gets ablaze whenever the banksters sniff public money heading their way -
- Bank Of America (BAC) +1.29 (26.7%) to $6.13 on volume of 718.42m shares;
- JPMorganChase (JPM) +3.09 (12.6%) to $27.63 on volume of 76.54m shares;
- Citigroup (C) +0.38 (10.8%) to $3.91 on volume of 259.31m shares;
- American Express (AXP) +0.9 (5.3%) to $17.93 on volume of 18.92m shares; and
- Caterpillar (CAT) +1.67 (5.3%) to $33.28 on volume of 16.92m shares.
The S&P500 Index gained 22.75 points (2.69%) to 868.60 points.. Total volume traded in the 500 components of the index was 5.36bn shares. Advancers outpaced decliners by 9.4 to one, with 433 advancers to 46 decliners. Advancing volume exceeded declining volume by 4.94bn to 366.53m shares. The biggest gainers (percentage-wise) were -
- Fifth Third Bancorp (FITB) +0.99 (60.4%) to $2.63 on volume of 69.51m shares;
- Regions Financial Corp. (RF) +1.37 (48.4%) to $4.2 on volume of 47.43m shares;
- Marshall & Ilsley Corp. (MI) +1.49 (39%) to $5.31 on volume of 13.73m shares;
- Huntington Bancshares (HBAN) +0.57 (31.8%) to $2.36 on volume of 27.02m shares; and
- Bank of America Corp. (BAC) +1.29 (26.7%) to $6.13 on volume of 718.42m shares.
The Nasdaq Composite rose +45.47 points (2.94%) to 1591.71 points, while the Nasdaq100 index (NDX) advanced 32.38 points (2.6%) to 1277.49 points. Total volume traded in the 100 components of the Nasdaq100 was 1.09bn shares. Advancers outpaced decliners by 9.9 to one, with 89 advancers to 9 decliners. Advancing volume exceeded declining volume by 870.8m to 224.15m shares. The biggest gainers (percentage-wise) were -
- SanDisk (SNDK) +1.04 (10.4%) to $11.05 on volume of 8.33m shares;
- Steel Dynamics (STLD) +1.1 (8.7%) to $13.79 on volume of 8.84m shares;
- Logitech International (LOGI) +0.78 (8.2%) to $10.24 on volume of 1.76m shares;
- Infosys Technologies (INFY) +2.19 (8.2%) to $28.99 on volume of 4.92m shares; and
- Lamar Advertising (LAMR) +0.72 (8%) to $9.76 on volume of 1.44m shares.
Volatility
The CBOE Volatility Index dropped 0.36 points (0.82%) to 43.37 points. and the CBOE Nasdaq100 Volatility Index lost 1.35 points (3.12%) to 41.95 points..
Breadth and Internals
A total of 3889 issues traded today on the NYSE; 3113 stocks posted gains for the day, and there were 696 losers. 15 stocks made new 1-year highs on the NYSE, while 70 shares plumbed new 52-week depths.
On the Nasdaq 2906 tickers traded today; total Nasdaq volume was 2.4bn shares. A total of 2061 stocks posted gains for the day, with aggregate volume of 1.98bn shares changing hands in the day's winners. The red zone of the Nasdaq exchange comprised 703 losers, and total declining volume was 0.4bn shares. 7 Nasdaq-listed stocks hit new 52-week highs, while 75 shares dipped to new 1-year lows.
| Major Market Statistics | |||
| Index | Close | Gain(Loss) | % |
| Dow Jones Industrial Average | 8280.59 | +217.52 | 2.7% |
| S&P500 Index | 868.60 | +22.75 | 2.69% |
| Nasdaq Composite | 1591.71 | +45.47 | 2.94% |
| Nasdaq100 | 1277.49 | +32.38 | 2.6% |
| CBOE Volatility Index | 43.37 | -0.36 | -0.82% |
| CBOE Nasdaq100 Volatility Index | 41.95 | -1.35 | -3.12% |
Dow Darlings
- Bank Of America (BAC) +1.29 (26.7%) to $6.13 on volume of 718.5m units
- JPMorganChase (JPM) +3.09 (12.6%) to $27.63 on volume of 76.5m units
- Citigroup (C) +0.38 (10.8%) to $3.91 on volume of 259.4m units
- American Express (AXP) +0.9 (5.3%) to $17.93 on volume of 18.9m units
- Caterpillar (CAT) +1.67 (5.3%) to $33.28 on volume of 16.9m units
Dow Duds:
- General Motors (GM) -0.02 (0.7%) to $2.84 on volume of 9.7m units
Most Traded Dow stocks:
- Bank Of America (BAC) +1.29 (26.7%) to $6.13 on volume of 718.5m units
- Citigroup (C) +0.38 (10.8%) to $3.91 on volume of 259.4m units
- General Electric (GE) +0.25 (2.3%) to $11.1 on volume of 218.3m units
- Microsoft (MSFT) +0.62 (3.3%) to $19.66 on volume of 85.7m units
- JPMorganChase (JPM) +3.09 (12.6%) to $27.63 on volume of 76.5m units
Precious Metals
The Gold Bugs index (XAU) advanced 2.89 points (2.28%) to 129.72 points. Total volume traded in the 16 components of the index was 128.11m shares. Advancers outpaced decliners by 14 to one, with 14 advancers to 1 decliners. Advancing volume exceeded declining volume by 111.53m to 0.77m shares. The biggest gainers (percentage-wise) were -
- AngloGold Ashanti (AU) +1.71 (6.6%) to $27.67 on volume of 4.02m shares;
- Freeport McMoran (FCX) +1.46 (5.1%) to $29.81 on volume of 31.18m shares;
- Harmony Gold (HMY) +0.48 (4.2%) to $11.97 on volume of 2.75m shares;
- RandGold Resources (GOLD) +1.64 (3.6%) to $46.61 on volume of 0.84m shares; and
- Coeur d'Alene (CDE) +0.02 (2.9%) to $0.71 on volume of 5.87m shares.
Energy Complex
The Oil Services index (OSX) gained 4.06 points (3.04%) to 137.8 points. Total volume traded in the 15 components of the index was 97.42m shares. Not a single stock declined withinin the index: the biggest gainers (percentage-wise) were -
- Cameron International (CAM) +1.34 (6.1%) to $23.26 on volume of 5.94m shares;
- Weatherford International (WFT) +0.66 (5.6%) to $12.35 on volume of 15.68m shares;
- Rowan Co (RDC) +0.62 (4.6%) to $14.16 on volume of 4.81m shares;
- BJ Services (BJS) +0.53 (4.5%) to $12.31 on volume of 6.5m shares; and
- National Oilwell Varco (NOV) +1.17 (4.2%) to $29.19 on volume of 8.88m shares.
Bellwethers
The nine-stock group that makes up the Rant bellwethers advanced on average by 8.9% thanks to massive rebounds in Fannie Mae and Freddie Mac (or as I refer to them in their new Soviet status under nationalisation: Fannie Lenin and Freddie Trotsky) The fallout occurred as follows:
- General Electric (GE) +0.25 (2.3%) to $11.10 on volume of 218.25m units.
- Citigroup (C) +0.38 (10.76%) to $3.91 on volume of 259.39m units.
- Wal-Mart (WMT) +1.07 (2.2%) to $49.63 on volume of 28.18m units.
- IBM (IBM) +4.23 (4.6%) to $96.14 on volume of 12.74m units.
- Intel (INTC) +0.48 (3.37%) to $14.73 on volume of 61.85m units.
- Cisco Systems (CSCO) +0.69 (4.22%) to $17.04 on volume of 62.11m units.
- Google (GOOG) +17.56 (4.96%) to $371.28 on volume of 6.97m units.
- Fannie Mae (FNM) +0.13 (25%) to $0.65 on volume of 20.64m units.
- Freddie Mac (FRE) +0.12 (23.08%) to $0.64 on volume of 12.75m units.
Other Indices of Interest...
The Banks index (BKX) added 3.24 points (11.94%) to 30.37 points. Total volume traded in the 24 components of the index was 1.51bn shares. Not a single stock declined withinin the index: 21 of the 24 index components rose, with total upside volume of 1.51bnshares. The biggest gainers (percentage-wise) were -
- Fifth Third Bancorp (FITB) +0.99 (60.4%) to $2.63 on volume of 69.51m shares;
- Regions Financial (RF) +1.37 (48.4%) to $4.2 on volume of 47.43m shares;
- New M&I Corporation (MI) +1.49 (39%) to $5.31 on volume of 13.73m shares;
- Huntington Bancshares (HBAN) +0.57 (31.8%) to $2.36 on volume of 27.02m shares; and
- Bank Of America (BAC) +1.29 (26.7%) to $6.13 on volume of 718.42m shares.
The Semiconductor index (SOX) added 7.87 points (3.56%) to 229.18 points. Total volume traded in the 18 components of the index was 276.03m shares. Not a single stock declined withinin the index: the biggest gainers (percentage-wise) were -
- Infineon Tech (IFX) +0.16 (17.6%) to $1.07 on volume of 3.68m shares;
- Sandisk (SNDK) +1.04 (10.4%) to $11.05 on volume of 8.33m shares;
- ST Microelectronic (STM) +0.4 (7.5%) to $5.73 on volume of 1.4m shares;
- Taiwan Semiconductor (TSM) +0.58 (7.2%) to $8.69 on volume of 41.72m shares; and
- Teradyne (TER) +0.31 (6.2%) to $5.31 on volume of 4.23m shares.
The ChildKiller ("Defence") index (DFX) added 2.11 points (0.85%) to 249.52 points. Total volume traded in the 17 components of the index was 262.98m shares. Advancers outpaced decliners by 1.7 to one, with 10 advancers to 6 decliners. Advancing volume exceeded declining volume by 242.56m to 20.41m shares. The biggest gainers (percentage-wise) were -
- Gencorp (GY) +0.27 (8.6%) to $3.41 on volume of 0.23m shares;
- Esterline Tech (ESL) +1 (2.7%) to $38.24 on volume of 0.28m shares;
- Embraer Empresa (ERJ) +0.42 (2.7%) to $16.1 on volume of 0.53m shares;
- General Electric (GE) +0.25 (2.3%) to $11.1 on volume of 218.25m shares; and
- FLIRr Systems (FLIR) +0.51 (2.3%) to $23.13 on volume of 4.24m shares.
