Don't Believe Today’s Market Rise Was Significant

Closing Market Commentary For 7-3-2012

The markets barely moved when the announcement that U.S. factory orders rose 0.7% in May from April, topping estimates of a 0.2% increase this morning. By 11:30 the markets rose a few points to mark the high of the day and by 12:30 they had descended again a few points. Only the low caps seemed to have any movement as the Russell 2000 made a 1% move up as it did yesterday. Low volume and a narrow range bound market closes the day with nothing important to talk about. Mostly it was DaBoyz that moved the market today and I wouldn’t begin to believe today’s up trend was any indication of things to come.

I commonly refer to DaBoyz and the ‘Five-Fingered-Financiers’ in my articles as the ‘crooks’ that move the markets around as they please and it is noteworthy that you can actually see it during low volume sessions such as the one we have today, just before the Fourth of July holiday. Here is something to think about as it applies to the US banking as well. And that’s not because they’re too-big-to-fail; it’s because they’re too-big-to-control and have it too-good-to-ever-change their sleazy, self-serving, corrupt ways.

@zerohedge:
Diamond Cracks: Here Are The Shocked Reactions
A bottle of Bollinger has brought down Bob. This is just the beginning, because one knows Barclays by definition was not alone. Many, many more banks will emerge, hopefully their bankers were not quite as dumb as Barclays’ henchmen to discuss in retainable, email format their plans for interest rate manipulation, although we doubt it.
In which case many more executives will fall as all those “conspiracy theorists” over the past 4 years are proven right once again, and as politicians scramble to cover up all loose ends which may expose them as instrumental (and bribed) in the fact that the “market” is once big farce.
In the meantime, courtesy of the WSJ, here are the shocked, nay stunned, reactions to Bob Diamond’s resignation.

And

Biderman On Europe And The Rally: “It’s All Bullshit”
The sensible Sausalitan is back and this time he is taking on the “baffle ’em with bullshit” conclusion of last week’s “non-game-changer” EU Summit.
After some self-congratulatory chatter on his timely call for markets to ebb from April, Charles Biderman (CEO of TrimTabs) chokes back the spittal as he reflects on what came out of the mouths of European leaders last week: “I cannot see anything new from last week’s summit” as he summarizes the findings clearly “The ECB possibly will print more money and save some Spanish and Italian banks”.
We can’t help but agree with Charles when he adds: “Where have I heard that before? Printing Money To Save Banks – wow, how original?”. Biderman still believes the Fed will engage in more money-printing but the stock market’s current rally is temporary and will falter once again until Bernanke pre-announces his next print-fest.
“Money-printing is the only solution left for Central Banks and in reality without fundamental changes in the way Europe and the US is run, the best money-printing can do is keep the dieing alive a bit longer”

Afternoon reads:

Spain Rally: Prepare For The Next Big Leg Down by Graham Summers

Did Germany Just Take A Step Closer To Exiting The Eurozone? by Jeremy Robson

Are Market Expectations Too Low? by Cam Hui

Daily State Of The Markets: Can The Optimism Continue To Prevail? by David Moenning

Barclays Libor Scandal: How Big Will This Get? By Larry Doyle

Hedge Against Inevitable Euro Meltdown: ‘The Least Bad Option’ by Josh Cohen

Nightmare on Wall Street: This Secular Bear Has Only Just Begun By Ed Easterling

The 500 at the close.