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Big up day but on light volumes.
CAT earnings provided the domestic push, and better than expected data from China cooled fears of global recession.
The punters were whistling pass the graveyard on Euro debt today.
Let's see if they can break stocks out from here and make it stick ahead of the European meeting on Wednesday.
NFLX guided lower and was punished after the bell.
It was 'Risk On' today as stocks rallied and went out on their highs and gold followed.
The US Dollar dropped to a post WW II low against the Yen on talk of QE3. I suspect strongly that someone in Treasury shared some prospective monetary actions with their Asian counterparts today. Apparently they are not so sanguine about the benign affects of modern monetary theory, even of the more benign and traditional Keynesian sort.
The Fed Is Laying the Groundwork for Further Easing - Thoma
Stimulus will not work in a system that remains unbalanced and broken, with the real economy skewed to support a non-productive financial class. And austerity will merely bring the final crash and counter reaction more quickly. It will not 'get it over with.' It is more like driving faster so you can impact with this bridge abutment rather than one further down the road. A flaming wreck is rarely a good outcome. We might consider fixing the car instead. But that would require a change of drivers.
See you Sunday night.
Wax on and Wax off for option expiration.
The Risk Trade was On today on words from the Fed's Yellen amongst others hinting at a new round of QE3 from the Fed. Expectations are high that Europe will bail out its banks via the PIGS sovereign debts, in the manner that the US bailed out the Wall Street banks both directly, and indirectly via AIG.
If you have Level II trading you may notice that whenever you post a bid you could be getting a lot of fast company depending on the size of it. At least this is my experience and it is becoming increasingly annoying. Today I was posting bids and asks of between 1000 to 5000 shares, just to see the kind of shenanigans from the various exchanges, and in dull stocks!
If this thing gets going to the downside it could be quite the spectacle. But Benny and the Boyz are in there bailing out the banks, make no mistake about it. Wall Street is Job One.
See you Sunday night. Here we go again.
Some of the plunge was obviously technical, as sellers ran the stops and forced further selling. The currency market makes the stock market look good at the extremes of moves.
I suspect strongly that the Fed is much more involved in the European bailout than meets the eye. And that many of the things that have been occurring in the metals will become much clearer over time.
God help the people if the financiers and their monied interests ever achieve a single developed world currency, because then no one's wealth will be safe from their predation which comes like a thief in the night, enriching the few and impoverishing many.
Dollar Drops to Post World War II Low Against Japan’s Yen; Euro Advances
By Catarina Saraiva and Garth Theunissen
Oct 21, 2011 9:24 AM ET
The dollar fell to a post-World War II low against the yen on speculation further monetary easing by the Federal Reserve will debase the U.S. currency.
The rise in Japan’s currency raises the possibility of further intervention by authorities to stem its gain. The euro rose for a fourth day against the dollar, in the longest stretch of advances since July, before two summits in five days at which European policy makers will discuss a plan to resolve the region’s debt crisis.
“The dollar is coming under pressure across the board at the moment,” said Derek Halpenny, head of European currency research at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “That’s just triggered some stops around the 76.40 to 76.50 level, which has pushed yen a bit stronger.”
Japan’s currency appreciated 0.8 percent to 76.21 versus the dollar at 9:10 a.m. in New York after touching the record high of 75.82 versus the dollar. The euro rose 0.6 percent to $1.3859, paring its weekly drop to 0.5 percent. The euro dropped 0.4 percent to 105.44 yen.
Fed Governor Daniel Tarullo’s call for resuming large-scale purchases of mortgage bonds may boost chances the central bank will start a third round of asset buying aimed at reviving U.S. growth...
