Market Soapbox 05/11/05
Resistance: DJIA 10400; SP500 1180; Nasdaq 1980; NDX 1465
Support: DJIA 9900 ; SP500 1125 ; Nasdaq 1870; NDX 1375
Positive: financial, industrials, transportation, brokerage, homebuilding, banks, networking, software
Weak: oil serv, consum disc & cyc, semi mfg, B2B, Internet Infra, airline, gold, biotech, commodity, healthcare, materials, Reit, telecom
52 Week HiLo: NYSE 64/43; Nasdaq 37/61; Amex 21/26
A/D Volume: NYSE 1005/714, Nasdaq 1089/561, Amex 195/39
Volume: NYSE 1.761B, Nasdaq 1.701B
Upcoming Notable reports:
THUR: Jobless Claims, Retail Sales est. +0.7%; (ex-auto) est. +0.5%
FRI: Business Inventory, Export Prices(ex-ag), Import Prices(ex-oil), Michigan Sentiment Prelim
Treasury Budget $57.7B (est. $58B); Trade Balance -55B (Feb -60.6B, est. -61.2B) a 9.2% decline, surprise! EIA 13th build in inventory: +2.7M (est. +1.25M) gasoline +187K (est. +900K)
European (DAX -0.16%) & Asian markets (Nikkei 225 -0.35%) were down. Dollar up vs. Yen/Euro, gold, oil, commodities down, bonds unchg.
10 year note +2 ticks, yield -.008 @ 4.20%. Oil: -3.21% @ 50.40. Contra action: None. 9 of 10 sectors up on slightly higher volume.
Today's Sooey Pig Pig!! award goes to Friedman Billings for upgrading Compudyne CDCY, a provider of public & government security systems, from underperform to market perform.
Income -$8.2 M, shrinking profit margins -5.7%, decelerating revenue & EPS -$0.75, QoQ -226% & YoY, stock down 38% in 12 months. Stock up 9.46% on twice daily average volume. Soooey!!!!
The Treasury Dept. sold $15B in the 5 year note auction, indirect bidder participation (foreign central banks) came in at 34%, compared to 28.2% in April and the average of 39.1%. There is 1 more day left in the auction, $14B in 10 year notes go out tomorrow.
The market gapped up then plunged down mid day, rallying up to get its head just above the bowl rim by the end of the day. Biotech did NOT get a bid, breaking the streak at 9 days.
The bond auction, options unwind, and the GM derivatives fallout could slam the toilet lid down and provide a nice healthy flush out next week. Wen, Thurs & options expiration day Fri look ripe for down play.
We should see a continuation of todays action, sideways and downward through mid day Thurs. This is when the auction ends and things may stabilize. Just my opinion, I could be wrong.
Support: DJIA 9900 ; SP500 1125 ; Nasdaq 1870; NDX 1375
Positive: financial, industrials, transportation, brokerage, homebuilding, banks, networking, software
Weak: oil serv, consum disc & cyc, semi mfg, B2B, Internet Infra, airline, gold, biotech, commodity, healthcare, materials, Reit, telecom
52 Week HiLo: NYSE 64/43; Nasdaq 37/61; Amex 21/26
A/D Volume: NYSE 1005/714, Nasdaq 1089/561, Amex 195/39
Volume: NYSE 1.761B, Nasdaq 1.701B
Upcoming Notable reports:
THUR: Jobless Claims, Retail Sales est. +0.7%; (ex-auto) est. +0.5%
FRI: Business Inventory, Export Prices(ex-ag), Import Prices(ex-oil), Michigan Sentiment Prelim
Treasury Budget $57.7B (est. $58B); Trade Balance -55B (Feb -60.6B, est. -61.2B) a 9.2% decline, surprise! EIA 13th build in inventory: +2.7M (est. +1.25M) gasoline +187K (est. +900K)
European (DAX -0.16%) & Asian markets (Nikkei 225 -0.35%) were down. Dollar up vs. Yen/Euro, gold, oil, commodities down, bonds unchg.
10 year note +2 ticks, yield -.008 @ 4.20%. Oil: -3.21% @ 50.40. Contra action: None. 9 of 10 sectors up on slightly higher volume.
Today's Sooey Pig Pig!! award goes to Friedman Billings for upgrading Compudyne CDCY, a provider of public & government security systems, from underperform to market perform.
Income -$8.2 M, shrinking profit margins -5.7%, decelerating revenue & EPS -$0.75, QoQ -226% & YoY, stock down 38% in 12 months. Stock up 9.46% on twice daily average volume. Soooey!!!!
The Treasury Dept. sold $15B in the 5 year note auction, indirect bidder participation (foreign central banks) came in at 34%, compared to 28.2% in April and the average of 39.1%. There is 1 more day left in the auction, $14B in 10 year notes go out tomorrow.
The market gapped up then plunged down mid day, rallying up to get its head just above the bowl rim by the end of the day. Biotech did NOT get a bid, breaking the streak at 9 days.
The bond auction, options unwind, and the GM derivatives fallout could slam the toilet lid down and provide a nice healthy flush out next week. Wen, Thurs & options expiration day Fri look ripe for down play.
We should see a continuation of todays action, sideways and downward through mid day Thurs. This is when the auction ends and things may stabilize. Just my opinion, I could be wrong.
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