Market Soapbox 12/27/05
Quick and dirty...
DJIA -108, the single largest one day loss since October. All indices clobbered in a broadbased selloff. All sectors except Airlines down in a bloodletting, REITs slaughtered -3%.
Natural Gas futures continued their pullback 10% today, making 25% in the last three sessions. Oil futures also pulled back dragging the energy sector down 3% and the stock market with it.
We mentioned Friday that the Yield Curve had INVERTED at the short end. Today it
flipped over and inverted BIGTIME.
Bonds up BIG with the 10 year yield falling @ 4.34% & the 30 year @ 4.50. 6 month & 2 year gap @ -3 bp; 2 & 5 year gap @ -5 bp; 2 & 10 year gap @ 0 bp; 5 & 10 year gap @ 5 bp; 10 & 30 gap @ 16 bp.
Thus putting the 6 month above 2 year; 2 year above 5 year; 2 year = 10 year. All we need now is the 5 year => 10 year and its good night Irene...
If there is follow through tomorrow, the Bermuda shorts around our ankles are getting pulled up in short order.
Hasta
DJIA -108, the single largest one day loss since October. All indices clobbered in a broadbased selloff. All sectors except Airlines down in a bloodletting, REITs slaughtered -3%.
Natural Gas futures continued their pullback 10% today, making 25% in the last three sessions. Oil futures also pulled back dragging the energy sector down 3% and the stock market with it.
We mentioned Friday that the Yield Curve had INVERTED at the short end. Today it
flipped over and inverted BIGTIME.
Bonds up BIG with the 10 year yield falling @ 4.34% & the 30 year @ 4.50. 6 month & 2 year gap @ -3 bp; 2 & 5 year gap @ -5 bp; 2 & 10 year gap @ 0 bp; 5 & 10 year gap @ 5 bp; 10 & 30 gap @ 16 bp.
Thus putting the 6 month above 2 year; 2 year above 5 year; 2 year = 10 year. All we need now is the 5 year => 10 year and its good night Irene...
If there is follow through tomorrow, the Bermuda shorts around our ankles are getting pulled up in short order.
Hasta
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