WEDNESDAY 7/2/14; ADP Employment Report; Dow 17K Elusive; Factory Orders; Fed Chair Yellen Speaks

The NIKK jumps over +0.6% to a five-month high above 15440 using the US market joy as a springboard but fades into the closing bell ending up +0.3%. The dollar/yen is 101.59 continuing to float higher so the weaker yen pumps Japan stocks higher. Automakers such as TM bounce on the positive sales numbers from yesterday. Asia markets in general take on an upbeat tone finishing higher across the board. The KOSPI is up +0.8% and India’s BSE gains +1.3%.

Protestors clash with police in Hong Kong during the democracy rally. Over 800K people take to the streets in support of more independence and self-rule for Hong Kong the largest assembly in over one decade. Beijing, however, plans to keep its foot on Hong Kong’s throat and over 500 activists are arrested and hauled away; perhaps never to be seen again. Global traders do not care about geopolitical events in this modern day of central banker intervention. There are no worries since the stock market is guaranteed to go up on the easy money flooding into markets daily. China’s SSEC gains +0.4% and the Hang Seng Index catapults +1.6% higher.

Turkish PM Erdogan launches a campaign for the presidential elections. The elections will be corrupt like prior elections where the Internet is shut down and any detractors against Erdogan are tracked-down, harassed, beaten and jailed. Iraq is in chaos with the government unable to elect a new leader due to the political infighting. Meanwhile, the ISIS radicals take more territory and expand their reach in Iraq. ISIS is approaching the Baghdad airport preparing for an attack. Treasury Secretary Lew says the oil market can deal with the geopolitical turmoil. WTIC crude oil 104.90. Brent oil 111.66.

The global art bubble grows larger. Artist Tracey Emin’s ‘My Bed’ modern art piece sells for nearly $4 million at auction. The piece consists of a dirty bed with dirty clothes, cigarette butts and empty vodka bottles. Glue your garbage and trash to a sheet of plywood and you too can be a multi-million dollar artist in today’s euphoric art world. Millions in art has been sold in London over the last month alone. The large international Masterpiece art show and auction is taking place in the UK with the ultra wealthy tripping over each other to buy overpriced art and send prices ever higher.

European indexes trade above the flat line led by the MIB. The euro is 1.3665 marching to 1.37 and creating a splitting headache for ECB head Mario Draghi that needs a weaker dollar to jump start the continent’s economy. The robust global auto sales carry the car makers higher. BMW bounces +0.7%. Former French President Sarkozy is charged with corruption after yesterday’s questioning. Orange is shelving plans to merge with Bouygues so the telecoms including Iliad drop from -1% to -3%. Telefonica’s acquisition of E-Plus is approved. London home prices jump the most in 27 years pumping the UK housing bubble higher. Sterling hits a six-year high against the dollar at 1.7161.






[Text is Redacted: Purchase July 2014-07 to Read the Complete Chronology]

President Obama’s ratings continue to plummet as the scandals and humanitarian crisis at the southern border continue. A veteran’s widow receives a letter from the VA telling her husband to call for an appointment he had requested but he died two years ago waiting. The president says he will use executive orders to forward his agenda which is turning off the majority of America that wants to see cooperation not obstinate behavior. The president tells Speaker Boehner to “sue me” over the use of executive orders. A poll shows that Americans consider the three worst presidents as Richard “Tricky Dick” Nixon, George W. Bush and Barack Obama.

WTIC crude oil drops to 104.03 near a 103 handle. The all-important Monthly Jobs Report is only hours away and will set the tone for trading into the holiday weekend.