Market Observations 07/27/06
Yesterday, the XOI quietly hit a new all time high, and the DJUA flirting with one.
Today, Exxon Mobil $10.3B in quarterly profits, at a new all time high, energy +6.2% this week. Aetna cutting membership growth with rising claims, -20% to an 18 month low.
Yesterday, Amazon disappointed, -22% to a multi year low. Boeing -4.6% posted its 1st quarterly loss in 3 years.
Today, UPS got thumped again -5.6%, Norfolk Southern with an earnings shortfall -8% to a 9 month low, as transports were slapped silly for the 5th day out of 6.
$14B in 5 year notes auctioned, bid to cover a strong 2.28 vs prior 2.05, high yield 4.995%, indirect bidders a strong 22.8% vs prior 18.3%. Quarterly refunding Aug. 7-10, when 3 & 10 year notes and 30 year bonds will be sold.
Today early DJIA +85 points, then a broadbased ride down the stairs. Look at 05/25 through 06/01 for clues to the pattern.
Today, RUT did not pass GO 200 DMA 702 for the 3rd time then. as predicted, a fall from grace that grabbed support at 685. If 685 fails, RUT falls to 400 DMA @ 670.
Bonds, the XOI, DJIA, DJUA & OEX are on day 7 of an uptrend that started 07/18. This "flight" to safety is naturally running contrary to the DJTA, XAU, RUT, MID & SOXX making new lows over the same period.
Something's gotta give, and around the 31st will bring a major inflection and determine near and longer term direction for the markets.
Today, Exxon Mobil $10.3B in quarterly profits, at a new all time high, energy +6.2% this week. Aetna cutting membership growth with rising claims, -20% to an 18 month low.
Yesterday, Amazon disappointed, -22% to a multi year low. Boeing -4.6% posted its 1st quarterly loss in 3 years.
Today, UPS got thumped again -5.6%, Norfolk Southern with an earnings shortfall -8% to a 9 month low, as transports were slapped silly for the 5th day out of 6.
$14B in 5 year notes auctioned, bid to cover a strong 2.28 vs prior 2.05, high yield 4.995%, indirect bidders a strong 22.8% vs prior 18.3%. Quarterly refunding Aug. 7-10, when 3 & 10 year notes and 30 year bonds will be sold.
Today early DJIA +85 points, then a broadbased ride down the stairs. Look at 05/25 through 06/01 for clues to the pattern.
Today, RUT did not pass GO 200 DMA 702 for the 3rd time then. as predicted, a fall from grace that grabbed support at 685. If 685 fails, RUT falls to 400 DMA @ 670.
Bonds, the XOI, DJIA, DJUA & OEX are on day 7 of an uptrend that started 07/18. This "flight" to safety is naturally running contrary to the DJTA, XAU, RUT, MID & SOXX making new lows over the same period.
Something's gotta give, and around the 31st will bring a major inflection and determine near and longer term direction for the markets.
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