Market Soapbox 06/14/06
Resistance: DJIA 11775; SP500 1335; Nasdaq 2380; NDX 1750
Support: DJIA 10650, SP500 1210, Nasdaq 2050; NDX 1500,
Economic reports in todays other post. In our top story tonight, the leader of al-Qaida in Iraq, Abu Musab al-Zarqawi, is STILL dead. The media spin du jour was "market shrugs off CPI as inflation data is already priced in."
Yet, interest rate sensitive issues got clubbed on the CPI news, as bonds & the dollar suffered while tech, energy, gold & commodities rebounded. Meanwhile several brokerage houses issued upgrades on tech and semis, sniff, sniff.
MAJOR YIELD CURVE INVERSION: Bonds DOWN BIG with the 30 yr yield rising @ 5.09%; 10 yr @ 5.06; 5 yr @ 5.03; 2yr @ 5.11`; 6 mo @ 5.16.
Recent Inversions: 2yr above 10 yr 12/27 - 03/07 & 03/20 - 3/29. 2yr above 30 yr 02/09 - 03/07 & 03/21 - 3/29. 6mo above 10yr 06/02 -?; 2yr above 10yr 06/08 - ? 6mo & 2yr above 30yr 06/13 - ?
MON, its deja vu all over again... almost another broadbased triple digit selloff low volume with absolutely horrific internals. A real burial in the last 2 hours of trading DJIA-99.
TUE, more of the same, foreign markets and commodities crushed, broadbased decline on higher volume with abysmal internals, crashing into the close DJIA -86.
WEN, a triple digit bounce DJIA +110 on lower volume with decent internals excepting 52 week hi/lo. This week DJIA -75, since 09/19/05 DJIA +176.
Indexes UP: XAU, XOI DOWN: DJUA
Sectors UP: Gold Bugs, Airlines, Natural Gas, Oil, Commodities, Semis DOWN: Healthcare, Brokers, Banking, Utilities
Overseas: DAX UP, FTSE, CAC DOWN, Hang Seng & Nikkei 225 UP.
Dollar DOWN vs. Euro 1.2676 & vs. Yen 113.53, XAU UP & gold -DOWN @ 566.5, XOI & crude UP @ 69.14, CRB commodities index UP @ 332.02.
Today, foreign markets, commodities and non interest rate sensitive equities had a brief respite while bonds & the dollar took the fall. Today's tech sector upgrades had the herd at the troff looking for "bargains".
Since the last CPI on May 17th DJIA -6.3%, SP500 -5.3%, NAZ -7%. With NDX hitting 1511 yesterday, is this the beginning of a bounce to short into? Perhaps some more bounce on the morrow. Lets be patient and see.
Keep it tween da ditches, we take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong, this is The Nattering Naybob and your NOT!!!
Support: DJIA 10650, SP500 1210, Nasdaq 2050; NDX 1500,
Economic reports in todays other post. In our top story tonight, the leader of al-Qaida in Iraq, Abu Musab al-Zarqawi, is STILL dead. The media spin du jour was "market shrugs off CPI as inflation data is already priced in."
Yet, interest rate sensitive issues got clubbed on the CPI news, as bonds & the dollar suffered while tech, energy, gold & commodities rebounded. Meanwhile several brokerage houses issued upgrades on tech and semis, sniff, sniff.
MAJOR YIELD CURVE INVERSION: Bonds DOWN BIG with the 30 yr yield rising @ 5.09%; 10 yr @ 5.06; 5 yr @ 5.03; 2yr @ 5.11`; 6 mo @ 5.16.
Recent Inversions: 2yr above 10 yr 12/27 - 03/07 & 03/20 - 3/29. 2yr above 30 yr 02/09 - 03/07 & 03/21 - 3/29. 6mo above 10yr 06/02 -?; 2yr above 10yr 06/08 - ? 6mo & 2yr above 30yr 06/13 - ?
MON, its deja vu all over again... almost another broadbased triple digit selloff low volume with absolutely horrific internals. A real burial in the last 2 hours of trading DJIA-99.
TUE, more of the same, foreign markets and commodities crushed, broadbased decline on higher volume with abysmal internals, crashing into the close DJIA -86.
WEN, a triple digit bounce DJIA +110 on lower volume with decent internals excepting 52 week hi/lo. This week DJIA -75, since 09/19/05 DJIA +176.
Indexes UP: XAU, XOI DOWN: DJUA
Sectors UP: Gold Bugs, Airlines, Natural Gas, Oil, Commodities, Semis DOWN: Healthcare, Brokers, Banking, Utilities
Overseas: DAX UP, FTSE, CAC DOWN, Hang Seng & Nikkei 225 UP.
Dollar DOWN vs. Euro 1.2676 & vs. Yen 113.53, XAU UP & gold -DOWN @ 566.5, XOI & crude UP @ 69.14, CRB commodities index UP @ 332.02.
Today, foreign markets, commodities and non interest rate sensitive equities had a brief respite while bonds & the dollar took the fall. Today's tech sector upgrades had the herd at the troff looking for "bargains".
Since the last CPI on May 17th DJIA -6.3%, SP500 -5.3%, NAZ -7%. With NDX hitting 1511 yesterday, is this the beginning of a bounce to short into? Perhaps some more bounce on the morrow. Lets be patient and see.
Keep it tween da ditches, we take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong, this is The Nattering Naybob and your NOT!!!
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