Market Soapbox 08/24/05
Resistance: DJIA 10750; SP500 1250; Nasdaq 2200; NDX 1625
Support: DJIA 10500 ; SP500 1210 ; Nasdaq 2100; NDX 1535
European & Asian markets down. Dollar split vs. Yen/Euro , gold, XAU & gold bugs down big, XOI & oil up, commodities up, bonds flat.
Today's Soohey Pig Award goes to high tech investors for really grasping at some straws...
Apple Computer has surged 2.6% amid reports that Google's new Talk instant messaging service will allow users to communicate with Apples iChat...
Oh please, really? It's just what everyone will need and must have... Soohey! Pig! Pig!
Pimp my ride, while I look for value... GM jumped 4.2% on rumors of union concessions, Ford jumped 1.8% on restructuring news.
GM shares are 25% off their 52-week high while shares of Ford trade about 51% below its best levels of the last 12 months.
Monday a whipsaw day which ended barely up. Tuesday, a down day with little to cheer about other than utilities getting a bid from divident seekers.
Today, started down then swung to the upside, the RUT, MID, DJTA, SOX, XOI & NDX were strong, as large caps were marginal. Internals were decent on slightly higher volume.
Then oil hit 67.40 and the market tanked closing down big. Energy, oil & natural gas were the winners, if you call it that. Airline, transports & gold beat like a drum.
A larger than expected 4.9% decline in July durable orders (est. -1.5%), after a revised 9.2% gain over the prior two months.
Excluding the transportation component, orders fell -3.2% following a 4.5% two-month gain. July's drop was the biggest since Jan. 2004 and the first decline since March. Despite this drop, we still expect GDP to clock in at around 4.5% in Q305.
From yesterday: "Tomorrow's new home sales figures will be interesting, are we seeing the mustard starting to come off the hot dog?"
July new home sales jumped 6.5% to a new record high of 1.41M (est 1.33M). Sales jumped but prices dipped, as median prices are down -4% year over year.
Also, from yesterdays existing home sales report.... theres a lot of inventory sitting out there, housing supply rose to 2.75M - the most in 17 years.
More curiousities from yesterday, with a declining dollar.... stocks in Steel (-2.9%), Aluminum (-2.4%), Paper (-2.4%) and Chemicals (-2.1%), and yes materials got hammered again today.
More curiousities, consumer spending continues yet the underlying stocks on the year: Technology -1.5%; Consumer Discretionary -4.4% and Industrials -4.4%????
Bond yields went up with the dollar and the market. Now, bond yields are falling, with the dollar and the market.
Oil has continued to rise hitting 67.40 today, but interest rates are still artifically low. How long can this continue and when will something give?
We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.
Support: DJIA 10500 ; SP500 1210 ; Nasdaq 2100; NDX 1535
European & Asian markets down. Dollar split vs. Yen/Euro , gold, XAU & gold bugs down big, XOI & oil up, commodities up, bonds flat.
Today's Soohey Pig Award goes to high tech investors for really grasping at some straws...
Apple Computer has surged 2.6% amid reports that Google's new Talk instant messaging service will allow users to communicate with Apples iChat...
Oh please, really? It's just what everyone will need and must have... Soohey! Pig! Pig!
Pimp my ride, while I look for value... GM jumped 4.2% on rumors of union concessions, Ford jumped 1.8% on restructuring news.
GM shares are 25% off their 52-week high while shares of Ford trade about 51% below its best levels of the last 12 months.
Monday a whipsaw day which ended barely up. Tuesday, a down day with little to cheer about other than utilities getting a bid from divident seekers.
Today, started down then swung to the upside, the RUT, MID, DJTA, SOX, XOI & NDX were strong, as large caps were marginal. Internals were decent on slightly higher volume.
Then oil hit 67.40 and the market tanked closing down big. Energy, oil & natural gas were the winners, if you call it that. Airline, transports & gold beat like a drum.
A larger than expected 4.9% decline in July durable orders (est. -1.5%), after a revised 9.2% gain over the prior two months.
Excluding the transportation component, orders fell -3.2% following a 4.5% two-month gain. July's drop was the biggest since Jan. 2004 and the first decline since March. Despite this drop, we still expect GDP to clock in at around 4.5% in Q305.
From yesterday: "Tomorrow's new home sales figures will be interesting, are we seeing the mustard starting to come off the hot dog?"
July new home sales jumped 6.5% to a new record high of 1.41M (est 1.33M). Sales jumped but prices dipped, as median prices are down -4% year over year.
Also, from yesterdays existing home sales report.... theres a lot of inventory sitting out there, housing supply rose to 2.75M - the most in 17 years.
More curiousities from yesterday, with a declining dollar.... stocks in Steel (-2.9%), Aluminum (-2.4%), Paper (-2.4%) and Chemicals (-2.1%), and yes materials got hammered again today.
More curiousities, consumer spending continues yet the underlying stocks on the year: Technology -1.5%; Consumer Discretionary -4.4% and Industrials -4.4%????
Bond yields went up with the dollar and the market. Now, bond yields are falling, with the dollar and the market.
Oil has continued to rise hitting 67.40 today, but interest rates are still artifically low. How long can this continue and when will something give?
We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.
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