Market Observations 06/08/06
U.S. stocks fell for a fourth day, Asian equities declined to the lowest this year and European stocks dropped to their lowest since December. Japan -3.1%, India -4.7%, Korea -3.5%...
Global markets plunged and investor anxiety has not been this high since mid 2004 as YTD the VIX +13% & VXN +13.8% took out their 06 & 05 highs today. Those VIX call options are tasty...
Today, with the 10 yr bond auction siphoning liquidity early, the DJIA hit a low of 10757, SP500 1235, NAZ 2100, NDX 1525, all breeching the lines in the sand.
Although the indices did not close below these levels, this is not a good sign. Lets see if the late day PPT induced bounce which saved the market for today, has any legs. I hear elephants rustling...
The DJIA was off -1.6%, clinging to a 1% YTD gain, NAZ -2.4% and RUT -3.1%. But after the bond auction and dollar rescue, the PPT bounced up the market into the close.
The DJIA still -8.1% from its May 10th high. However, today there was a flight to "safety" as bonds rose and PG +3%.
With one week to go, MAX PAIN is DIA 110; SPX 1265; NDX 1585; MID 790; RUT 725, just look at where they are..... isn't that special?? We are looking towards June 12th or 19th as a potential BLACK day.
Global markets plunged and investor anxiety has not been this high since mid 2004 as YTD the VIX +13% & VXN +13.8% took out their 06 & 05 highs today. Those VIX call options are tasty...
Today, with the 10 yr bond auction siphoning liquidity early, the DJIA hit a low of 10757, SP500 1235, NAZ 2100, NDX 1525, all breeching the lines in the sand.
Although the indices did not close below these levels, this is not a good sign. Lets see if the late day PPT induced bounce which saved the market for today, has any legs. I hear elephants rustling...
The DJIA was off -1.6%, clinging to a 1% YTD gain, NAZ -2.4% and RUT -3.1%. But after the bond auction and dollar rescue, the PPT bounced up the market into the close.
The DJIA still -8.1% from its May 10th high. However, today there was a flight to "safety" as bonds rose and PG +3%.
With one week to go, MAX PAIN is DIA 110; SPX 1265; NDX 1585; MID 790; RUT 725, just look at where they are..... isn't that special?? We are looking towards June 12th or 19th as a potential BLACK day.
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