Still Seeking The Big Bottom
The Daily Reckoning
December 2-3, 2000
By Addison Wiggin
MARKET REVIEW: Still Seeking The Big Bottom
Friday looked as though it might give techies just what they’ve been yearning for, for the better part of this Autumn of Anxiety: the big bottom. But by the end of the day it was obvious the rally had little moxie. The Nasdaq gave back most of its nearly 150 run-up to close 47 higher at 2645 – a marginally positive close to an otherwise disastrous week. Overall the Nasdaq shed 259… and saw a point on Thursday 50% below it’s high for the year.
Neither could the Dow or S&P 500 muster any gumption. At 10,373 Friday’s Dow close marked a 97 loss for the week… the S&P lost a weekly total of 26 to close at 1,315.
Markets Around The World… Japan’s Nikkei got a little boost on Friday – up 1.3%. Germany’s DAX index was up a healthy 2.2%; London’s FT-SE shimmied up 0.5%. The CAC-40 in Paris, barely moved.
The Russell 2000 closed down 15 for the week to 456. And the Wilshire 5000 lost 73 to 12,037.
ADD’L PRICES FOR THE WEEK:
Gold: $269 up $3
Crude Oil: $32.15 down $3.25
Natural Gas: $6.67 up a dime
Platinum: $605 up $22
Palladium: $818 up $28
CRB Index: 228 down one
Dollar Index: 114 down four
Esperanto zeuro: $.87 up three cents
British Pound: $1.43 up $.03
And 110 Japanese yen to the crisp $US….up a yen.
MARKET COMMENT: Gas and Gold Gaining Ground
“This week, the growing importance of natural gas in the energy picture was underscored by the release of information showing that for the twelfth consecutive year the industry spent more on gas wells than oil. In 1999, gas expenditures accounted for 51% of total expenditures, vs. 24% for oil.
…and we’re finally seeing some action in gold. Overnight in Europe bullion prices moved more than $3.00 higher. On Friday morning gold stocks are mostly higher. The gold market has not reacted to a little bad news … but let’s see how it reacts to a lot of bad news. After all, that’s what appears to on the menu these upcoming months.”
FLOTSAM AND JETSAM: T’was a Time Before Christmas
Daily Reckoning reader Tim Laing submitted this gem:
“T’was a time before Christmas and all through the land, people paused to reflect on the hourglass sand. It’s been quite a year for the NASDAQ and Dow where hope springs eternal but profits are low. Of PE’s and profits, why they’re important some hailed, as for Amazon dot short the investors have bailed. Watch the cycles, pick a sector, in momentum there’s profit, but don’t forget the teachings of a guru named Buffett.
While far from reality on Parliament’s hill, not a neuron was stirring; all was quiet and still. When what to our wondering ears should we hear but a call to the polls from a man with a sneer. Why now? Not an election! Don’t bring us new lows. “Never mind” said Jean, “I’m da guy o knows.” “D’ers a new Day a comin an I’m gonna land da first blow, besides I look in da mirror and my friend say – lets go!”
Now in the land of the free and the home of the brave voters were choosing between a dunce and a knave. Is it Bush or is it Gore? This elections a hummer, it’s either tweedle-dee or a vote for tweedle-dumber. For the results we all waited and stayed up real late as everything hinged on the great Sunshine State. In Gotham it’s Hillary and in Missouri the dead, I don’t care any more, I’m just going to bed.
From the glow on the tube the view is troubled and torn, as too many children to a world of war are born. Oh Argentina, Oh Palestine, Oh Israel and Ireland, Oh Serbia, Oh Ethiopia, Oh Azerbaijan. The conflicts are long but life short and ground down, wouldn’t it be nice if t’was the other way around? Imagine a world where we all hear the call, where the well being of the smallest is the future of all.
The year it flew by at an astonishing pace, as we all tried to keep up with the rats and the race. The Genome’s been mapped and our food’s engineered, of a ten pound tomato there’s much to be feared. The Queen Mum continues to go round and round, while Pierre Elliott found his place and peace in the ground. There’s new life that’s come and some that’s been lost we all know the feelings; we all know the cost.
It was a year of moving from the malls to the hills as Lee the dogs and I settled down in Eden Mills. The goal was to live life more fully not faster, and the unsuspected bonus was Lee driving a tractor. New friends and new spaces remind us again, that life’s all about what you put in. Take time for yourself, it’s good and it’s right, and live every day like it’s opening night.”
-Tim Laing 2000
Hope you are enjoying your weekend,
The Daily Reckoning
THE CONTRARIAN GLOSSARY: The Information Age
THE INFORMATION AGE — the handle given to today’s post-industrial, post-modern economy. The successor to the Age of Ignorance, the Age of Information is characterized by such an abundance of useless facts and senseless data that, now, everyone knows everything…and almost no one knows anything.