Market Soapbox 04/04/05
After a whipsaw day, the DJIA -63 early, bounced +90 points, to eventually close +16. Today's market whipsaw was the inverse of Fridays. The DJIA, NYSE and AMEX wound up barely above water. In the last 10 days, the DJIA has bounced -175, +100, -135, +160, -200, +120; more on this later.
The market leaked into the close on increasing volume, with late negative volume reversals. Advance Decline volume was flat. Declining issue volume was slightly higher. A better indicator of today's weakness was new highs to lows, negative for the AMEX & Nasdaq, barely positive for the DJIA.
Friday the dollar went up along with oil. Today the dollar strengthened again, while oil whipsawed. The dollar closed at $1.285 to the Euro and 108.3 Yen to the dollar. In the morning, Oil $57.92 +$0.65 went up 1%, extending last week's gains +4.2%. Late-day profit taking closed Oil at $57.00 (-$0.27), more than a dollar below its intraday high of $58.20.
Gold went down as the dollar continued to surge amid poor economic reports coming from Japan and Europe. Bonds sold off, 10 yr note -2 ticks, raising the yield to 4.45%. Airlines, financial brokers, telecom, transports, consumer retail, homebuilders, healthcare and utilities were in the green today. Gold, oil, semis, commodities, networking and biotech were in the red.
In the last few days, there has been a lot of hand in hand contra cyclical market action. Dollar & Oil rising, gold & dollar declining, bonds & dollar rising. Contra being the operative word, which means, non cyclical and non sigularity, i.e. manipulated. Therefore, we are witnessing the Boys from Bermuda unwinding their positions.
Follow the bouncing ball, referring back to the end of the first paragraph. The pattern I see is a ball or slinky rolling down a flight of stairs. This action has caused the market to whipsaw up and down, this can be evidenced by a 10 day intraday chart, pick your poison, er, I mean index. The ball rolls off the step, straight down to the next level, takes a small bounce up in a sideways fashion, then rolls over the ledge and down to the next step.
Tomorrows action could spike up in the morning, giving way to the downside (another ledge) as the day progresses. Next Friday April 15th is options expiration day, more unwinding should occur in the next 2-3 trading days. Hasta.
The market leaked into the close on increasing volume, with late negative volume reversals. Advance Decline volume was flat. Declining issue volume was slightly higher. A better indicator of today's weakness was new highs to lows, negative for the AMEX & Nasdaq, barely positive for the DJIA.
Friday the dollar went up along with oil. Today the dollar strengthened again, while oil whipsawed. The dollar closed at $1.285 to the Euro and 108.3 Yen to the dollar. In the morning, Oil $57.92 +$0.65 went up 1%, extending last week's gains +4.2%. Late-day profit taking closed Oil at $57.00 (-$0.27), more than a dollar below its intraday high of $58.20.
Gold went down as the dollar continued to surge amid poor economic reports coming from Japan and Europe. Bonds sold off, 10 yr note -2 ticks, raising the yield to 4.45%. Airlines, financial brokers, telecom, transports, consumer retail, homebuilders, healthcare and utilities were in the green today. Gold, oil, semis, commodities, networking and biotech were in the red.
In the last few days, there has been a lot of hand in hand contra cyclical market action. Dollar & Oil rising, gold & dollar declining, bonds & dollar rising. Contra being the operative word, which means, non cyclical and non sigularity, i.e. manipulated. Therefore, we are witnessing the Boys from Bermuda unwinding their positions.
Follow the bouncing ball, referring back to the end of the first paragraph. The pattern I see is a ball or slinky rolling down a flight of stairs. This action has caused the market to whipsaw up and down, this can be evidenced by a 10 day intraday chart, pick your poison, er, I mean index. The ball rolls off the step, straight down to the next level, takes a small bounce up in a sideways fashion, then rolls over the ledge and down to the next step.
Tomorrows action could spike up in the morning, giving way to the downside (another ledge) as the day progresses. Next Friday April 15th is options expiration day, more unwinding should occur in the next 2-3 trading days. Hasta.
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