Market Soapbox 01/05/06
Still on the road, quick and dirty...
Initial claims at 291K, a five year low, ISM Services at 59.8 vs prior 58.5, both stoking inflation fears. EIA crude inventories showed an unexpected build in oil, gasoline and distillates, dragging down energy futures from an 11 week high and taking the energy sector and the market along with it excepting tech. A sideways day on higher volume with so-so internals DJIA +2.
RUT, NDX, SOX and tech leading the way up big, energy, oil, natural gas, commodity, gold bugs and utilities all clubbed down. European indices down and Asian indices up. Oil at 62.67 and the dollar finally got a break.
Yield curve inverted with the 10 year yield @ 4.35% & the 30 year @ 4.54. 6 month & 10 year gap -1bp; 6 month & 2 year gap -4 bp; 2 & 5 year gap @ -4 bp; 2 & 10 year gap @ 3 bp; 5 & 10 year gap @ 7 bp; 10 & 30 gap @ 19 bp.
Upcoming reports: Jan 6: Non Farms Payroll & Unemployment.
From Tues: "Oil futures and the energy sector buoyed the market." Today they did not as yesterday had broadbased followthrough on Tuesday's action.
The SP500 hit a 4.5 year high yesterday, the MID an all time high today, the SOX near a long term high. These are psychological barriers that the market must pierce with conviction.
Perhaps Friday will bring a consolidtion before the next attempted run up, especially if the Non farm report comes in above 200K, which would stoke inflation fears.
Hasta
Initial claims at 291K, a five year low, ISM Services at 59.8 vs prior 58.5, both stoking inflation fears. EIA crude inventories showed an unexpected build in oil, gasoline and distillates, dragging down energy futures from an 11 week high and taking the energy sector and the market along with it excepting tech. A sideways day on higher volume with so-so internals DJIA +2.
RUT, NDX, SOX and tech leading the way up big, energy, oil, natural gas, commodity, gold bugs and utilities all clubbed down. European indices down and Asian indices up. Oil at 62.67 and the dollar finally got a break.
Yield curve inverted with the 10 year yield @ 4.35% & the 30 year @ 4.54. 6 month & 10 year gap -1bp; 6 month & 2 year gap -4 bp; 2 & 5 year gap @ -4 bp; 2 & 10 year gap @ 3 bp; 5 & 10 year gap @ 7 bp; 10 & 30 gap @ 19 bp.
Upcoming reports: Jan 6: Non Farms Payroll & Unemployment.
From Tues: "Oil futures and the energy sector buoyed the market." Today they did not as yesterday had broadbased followthrough on Tuesday's action.
The SP500 hit a 4.5 year high yesterday, the MID an all time high today, the SOX near a long term high. These are psychological barriers that the market must pierce with conviction.
Perhaps Friday will bring a consolidtion before the next attempted run up, especially if the Non farm report comes in above 200K, which would stoke inflation fears.
Hasta
Comments