Market Observations 05/22/06
UPDATED: The markets recent movement has been precipitated by a major move into bonds by the hedge funds, they unwound commodities and equities positions to do this... and its not just in our market, witness today's Asian and European markets.
The Reuters/Jefferies CRB Index of 19 commodities slid 6.4 percent last week, the most since December 1980.
Oil, Copper, Zinc, Gold, Platinum and Silver were all pummeled down BIG last week and today in overseas trading.
Copper futures in Shanghai tumbled today by the 4 percent daily limit after inventories rose to a 12-week high and a report said demand fell in China, the world's biggest copper consumer.
India's Mumbai Stock Exchange's Sensitive index lost 456.84, -4.2%, after tumbling over 10% and a one hour trading halt. The Mumbai has collapsed over 16% in the last 5 days.
Other indexe's: FTSE, CAC & DAX all down over 1%, Milan -2%, Stockholm -2.5%, Nikkei -1.8%, Hang Seng -3.1%, Egypt -6%, Turkey -7%, most European market's plunged by 4 to 5% today.
Not a good sign and today's market futures are showing it on the SP500, NAZ and DJIA, we are being set up for a large downside opening and here is the explanation...
There is a massive flight to rescue the bond market and the dollar... leveraged speculative derivative's based hedges are being unwound in commodities and equities, where does the money go? For the moment, Bonds.
Yields on 10-year U.S. notes, German bunds and Japanese government securities with the same maturity dropped at least 4 basis points today.
YTD: 10 year Treasury yields +63 basis points, German bund yields +64 basis points and Japanese 10 year yields + 35 basis points.
Gains in Treasuries, Japanese bonds and German bunds in the past week leave them poised to halt four straight months of losses caused by evidence of faster inflation.
Hedge fund managers and other large speculators are betting on gains in Treasuries. They increased their net long positions in 10 year note futures in the week ended May 16, according to COTS data.
Speculative long positions, or bets prices will rise, outnumbered short positions by 106,571 contracts on the CBOT. There were 27,300 net long positions in the prior week.
Passing thought, save the bond, save the dollar, keep the interest rate low.. sound like a PPT move to you?? Or is it just the financial warlords, protecting their cash cow?
How about this? It's getting deep in here, forget the boots and save the watch.
The Reuters/Jefferies CRB Index of 19 commodities slid 6.4 percent last week, the most since December 1980.
Oil, Copper, Zinc, Gold, Platinum and Silver were all pummeled down BIG last week and today in overseas trading.
Copper futures in Shanghai tumbled today by the 4 percent daily limit after inventories rose to a 12-week high and a report said demand fell in China, the world's biggest copper consumer.
India's Mumbai Stock Exchange's Sensitive index lost 456.84, -4.2%, after tumbling over 10% and a one hour trading halt. The Mumbai has collapsed over 16% in the last 5 days.
Other indexe's: FTSE, CAC & DAX all down over 1%, Milan -2%, Stockholm -2.5%, Nikkei -1.8%, Hang Seng -3.1%, Egypt -6%, Turkey -7%, most European market's plunged by 4 to 5% today.
Not a good sign and today's market futures are showing it on the SP500, NAZ and DJIA, we are being set up for a large downside opening and here is the explanation...
There is a massive flight to rescue the bond market and the dollar... leveraged speculative derivative's based hedges are being unwound in commodities and equities, where does the money go? For the moment, Bonds.
Yields on 10-year U.S. notes, German bunds and Japanese government securities with the same maturity dropped at least 4 basis points today.
YTD: 10 year Treasury yields +63 basis points, German bund yields +64 basis points and Japanese 10 year yields + 35 basis points.
Gains in Treasuries, Japanese bonds and German bunds in the past week leave them poised to halt four straight months of losses caused by evidence of faster inflation.
Hedge fund managers and other large speculators are betting on gains in Treasuries. They increased their net long positions in 10 year note futures in the week ended May 16, according to COTS data.
Speculative long positions, or bets prices will rise, outnumbered short positions by 106,571 contracts on the CBOT. There were 27,300 net long positions in the prior week.
Passing thought, save the bond, save the dollar, keep the interest rate low.. sound like a PPT move to you?? Or is it just the financial warlords, protecting their cash cow?
How about this? It's getting deep in here, forget the boots and save the watch.
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