Market Soapbox 01/09/06

Still on the road, quick and dirty...

Consumer Credit in at -600M vs prior -8.4B vs est +5B, a 2nd straight pullback in the amount of money consumers are racking up on their credit.

A 5th straight day up with DJIA +53 on lower volume with pretty internals, closing over 11,000 for the first time since 2001.

DJTA, NAZ, RUT, MID, SOX, leading the way up, DJUA, XAU, airlines, utilities & healthcare down. European and Asian indices up. Oil down 1.3% at 63.23 and the dollar rebounded against the Yen & Euro.

Yield curve inverted bonds up with the 10 year yield falling @ 4.35% & the 30 year @ 4.55. 6 month & 10 year gap -1 bp; 6 month & 2 year gap -3 bp; 2 & 5 year gap @ -4 bp; 2 & 10 year gap @ 2 bp; 5 & 10 year gap @ 6 bp; 10 & 30 gap @ 19 bp.

Upcoming reports: Jan 10 Wholesale Inventories; Jan 11 EIA Crude; Jan 12 Export Prices ex ag, Import Prices ex oil, Initial Claims, Trade Balance, Treausury Budget; Jan 13 Business Inventories, PPI, Core PPI, Retail Sales, Retail Sales ex auto.

From Friday: "we look for further follow through and a long overdue decoupling of oil futures and the equity market. We are still watching 1746 NDX as a possible upside limit."

Today, oil futures pulled back, the energy sector was flat and the market went up nicely. As noted Friday, we suspect that sideline cash positions are re entering the market.

Also, the NDX hit 1745 intraday and the DJIA closed over 11,000. NDX 1745 - 1755 should be the limit on a closing basis, and we will watch closely for a potential pullback by Wend.

Hasta

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