Market Soapbox 06/30/06
Resistance: DJIA 11775; SP500 1335; Nasdaq 2380; NDX 1750
Support: DJIA 10650, SP500 1210, Nasdaq 2050; NDX 1500
In our top story tonight, the leader of al-Qaida in Iraq, Abu Musab al-Zarqawi, is STILL dead and someone else has taken his place.
Commodities, Bonds & Equities had a decent day. The Prices Paid component of Chicago PMI at an 18 year high, but inflation is tame.... Economic news to todays other post.
MINOR YIELD CURVE REVERSION: Bonds UP BIG with the 30 yr yield falling @ 5.18%; 10 yr @ 5.14; 5 yr @ 5.10; 2yr @ 5.15; 6 mo @ 5.24. 2 below 30, but above 10. 6 mo still above 10 & 30.
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 - 06/30
MON, an up day on lower volume with decent internals, DJIA +56.
TUE, operation save $ & bond in full effect, a broadbased triple digit slam to the downside for equities, DJIA -121 on higher volume with fugly internals.
WEN, an up and sideways flagwaving day DJIA +49 on lower volume with OK internals.
THU, a triple digit bounce with AUTHORITY, DJIA +217 on higher volume with pretty internals.
FRI, thin holiday volume with decent internals, DJIA -41. This week DJIA +160, since 09/19/05 DJIA +499.
Indexes UP: DJTA, RUT, XAU DOWN: SOX, NDX clubbed down.
Sectors UP: Airlines, Gold Bugs, Biotech, Telecom, Pharma, Commodity. DOWN: Banking, Semis, Tech.
Overseas: FTSE, CAC, DAX, Hang Seng & Nikkei 225 ALL UP BIG TIME.
Dollar DOWN vs. Euro 1.2789 & UP vs. Yen 114.41, XAU +1.9% & gold UP BIG +4.6% @ 616, XOI & crude UP @ 73.93, CRB commodities index UP +1.2% @ 346.39
We are witnessing Fed "pause" euphoria & quarter end window dressing that has sucked part of the herd in. A short week ahead as half day Monday, Tuesday markets closed.
VXN & VIX volatility clubbed down yesterday, its thinly traded and the weak hands are getting shook out. With Oil over $73, a slowing economy and interest rates getting ready to head up some more....
The DJTA & RUT go up??? Watch the XAU & Gold, it will tell the truth. We stand by our position that this is a head fake, until the market proves otherwise with additional conviction.
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
In our top story tonight, the leader of al-Qaida in Iraq, Abu Musab al-Zarqawi, is STILL dead and someone else has taken his place.
Commodities, Bonds & Equities had a decent day. The Prices Paid component of Chicago PMI at an 18 year high, but inflation is tame.... Economic news to todays other post.
MINOR YIELD CURVE REVERSION: Bonds UP BIG with the 30 yr yield falling @ 5.18%; 10 yr @ 5.14; 5 yr @ 5.10; 2yr @ 5.15; 6 mo @ 5.24. 2 below 30, but above 10. 6 mo still above 10 & 30.
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 - 06/30
MON, an up day on lower volume with decent internals, DJIA +56.
TUE, operation save $ & bond in full effect, a broadbased triple digit slam to the downside for equities, DJIA -121 on higher volume with fugly internals.
WEN, an up and sideways flagwaving day DJIA +49 on lower volume with OK internals.
THU, a triple digit bounce with AUTHORITY, DJIA +217 on higher volume with pretty internals.
FRI, thin holiday volume with decent internals, DJIA -41. This week DJIA +160, since 09/19/05 DJIA +499.
Indexes UP: DJTA, RUT, XAU DOWN: SOX, NDX clubbed down.
Sectors UP: Airlines, Gold Bugs, Biotech, Telecom, Pharma, Commodity. DOWN: Banking, Semis, Tech.
Overseas: FTSE, CAC, DAX, Hang Seng & Nikkei 225 ALL UP BIG TIME.
Dollar DOWN vs. Euro 1.2789 & UP vs. Yen 114.41, XAU +1.9% & gold UP BIG +4.6% @ 616, XOI & crude UP @ 73.93, CRB commodities index UP +1.2% @ 346.39
We are witnessing Fed "pause" euphoria & quarter end window dressing that has sucked part of the herd in. A short week ahead as half day Monday, Tuesday markets closed.
VXN & VIX volatility clubbed down yesterday, its thinly traded and the weak hands are getting shook out. With Oil over $73, a slowing economy and interest rates getting ready to head up some more....
The DJTA & RUT go up??? Watch the XAU & Gold, it will tell the truth. We stand by our position that this is a head fake, until the market proves otherwise with additional conviction.
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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