With The Dow Jones Industrial Average trading almost 50% higher than its 2007 peak, we thought it ironic that core Industrial durable goods orders remain well below the peak in 2008, once again suggesting that it may be time to drop the "Industrial" part from the name of the famous index.
NOTE: the decoupling between stocks and the real economy began to become obvious in late 2012/early 2013 - after QE3 was announced.
It has now become a weekly ritual: Goldman warns the market is overvalued and poised for a selloff, market proceeds to ramp to new all time highs.
While over the past several years many have observed the peculiar last half-hour ramp in the stock market, leading to a variety of amusing knock-off phenomena, perhaps nowhere was it more noticeable than what happened on the last two Friday afternoons, and especially the most recent one when with the market down notably going into the last 30 minutes of trading, the Dow soared in the last minute, turning green with 7 seconds of trading left, continuing the streak of 11 consecutive all time highs, the longest such stretch since early 1987.
Last week we reported that for the first time since the election, Bank of America's smart money clients were, as a group, selling stocks. As BofA's Jill Carey Hall calculated, after significant buying over the past few weeks, net client sales of $2.1 billion were the largest since June. However, there was a further nuance, one which has emerged as troubling for those calling for sustained gains in the market.
By the SRSrocco Report,
According to the fundamentals, gold and silver are severely compressed coiled springs looking for an opportunity to release their tremendous power. Yes, it is true, the precious metals still hold a great deal of power. Which is why their prices are constantly controlled by market intervention.