Friday, June 21, 2013

Stocks Close Modestly Higher, Bonds Sharply Lower

This week was the largest drop in bonds in the 50-year history of Bloomberg keeping record of it!

But stock closed modestly higher after Jon Hilsenrath at the WSJ said that the market may have misunderstood Bernanke's message earlier in the week. He said that Bernanke has no intention of reducing the monetization of US debt.

Stocks Go Red As Wall St Sees Very Coooold Turkey Coming!

Dow futures were up 90 points just hours ago, but what a difference an HOUR makes!

And bonds are selling off even more briskly than stocks:
The rise in interest rates is going to kill housing, corporate earnings, increase the deficit, and result in consumer credit defaults.

Eurodollars Plunge

This is the largest contraction in Eurodollars in two months.

Rising Risks, Socializing the Costs

This is not going to have good consequences.

Thursday, June 20, 2013

Europe Plunges!

Europe's stocks fell a stunning 3.7% today -- the biggest drop in 20 months!

Even Grains Give Some Back

Corn and wheat are down also. This chart shows the weakness today in soybeans, despite smaller crop yields that were announced yesterday.

Gold Collapses As Dollar Gains


US Dollar:

Stocks Sell Off 440 Points in 19 Hours


In it's statement following the Board of Governors meeting yesterday, the Fed said nothing about ending its free money eternity program for Wall St. But in his press conference, Ben Bernanke suggested that he would begin winding it down by the end of this year.

The Dow declined 207 points. And now today, it's down another 240 points so far.

Interestingly, the Wall St insiders are seeing the writing on the wall, and have decided to "take the money and run" by exiting the market. Will Main ST Americans do the same? Historically, most won't. So instead of "taking the money" they will be left "HOLDING THE BAG".

If you have money in the markets, it may be wise to take some money OFF the table. A word to the wise is sufficient!

Strangely, even Bubbles Bernanke was surprised that the bond market sold off as well. Interest rates rose SHARPLY yesterday. Gee, any guesses on how higher interest rates will impact residential housing (bad), corporate earnings (bad), and consumer debt default rates (bad)? Prepare for those awful unintended consequences, because things are about to take a turn for the dumpster! Interest rates and financial markets are about to suddenly revert to what they would have been if the Fed and its centrally-planned economy hadn't been manipulating financial markets for the past few years. Let's call it something scientific! Let's call it "reversion to the mean"! 


Wednesday, June 19, 2013

And Grains Screamed Higher Across the Board

 CHICAGO, June 19 (Reuters) - U.S. wheat futures climbed
nearly 3 percent on Wednesday, their biggest daily rise since
April, on buying and expectations of domestic demand for wheat
as livestock feed, traders said.
    Corn and soybeans also advanced, led by new-crop contracts
as forecasts for hotter, drier weather later this month in the
U.S. Midwest raised concerns about potential crop stress.
    At the Chicago Board of Trade, July wheat settled up
19.5 cents, or 2.8 percent, at $7.07 per bushel.
    July corn ended up 9 cents at $6.82-1/4 a bushel, with
new-crop December up 20 cents at $5.70-1/2.
    July soybeans rose 12-1/4 cents at $15.23 a bushel and
new-crop November ended up 21 cents at $13.10-3/4.

Stocks Plunge Following Fed Policy Statement

Wow! 206-pt plunge in the Dow today!

And bonds weren't spared either. Interest rates are now at the highest levels in 13 months! The 10-year jumped 8.35% in one day!

Stocks In Holding Pattern

We're waiting for the FOMC announcement later this morning.

Grains Leap Out of the Gait!

Tuesday, June 18, 2013

Stocks Rally Five Days

Obama has hinted that Ben Bernanke will not be reappointed as Fed Chairman. He has also hinted that he will appointed Janet Yellen. She is even more dovish than Bernanke, and today's market rally seems to be a reflection of that. Wall St loves big government and Fed money creation.

Monday, June 17, 2013

Wall St Buys the Dip