Market Soapbox 07/10/06
Resistance: DJIA 11775; SP500 1335; Nasdaq 2380; NDX 1750
Support: DJIA 10650, SP500 1210, Nasdaq 2050; NDX 1500
May wholesale inventories +0.8% as sales +1.6%. A new record low inventory to sales ratio of 1.15 months with stockpiles at 35 days of sales. In the last year, Inventories +7.8%, Sales +12.1%.
May Consumer Credit +2.4%, or $4.4B, to $2.173T vs prior +5.2% or $9.3B.
YIELD CURVE INVERSION: Bonds DOWN with the 30 yr yield rising @ 5.17%; 10 yr @ 5.13; 5 yr @ 5.09; 2yr @ 5.17; 6 mo @ 5.27.
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 & 2yr above 30yr 06/13 - 06/30.
6mo above 10yr 06/02 -?; 2yr above 10yr 06/08 - ? 6mo above 30yr 06/13 - ?
MON, DJIA +13 on lower volume with midlin internals. This week DJIA +13, since 09/19/05 DJIA +452.
Indexes UP: DJUA. DOWN: NDX, NAZ, SOX, XAU all pounded.
Sectors UP: Airlines, Healthcare. DOWN: Biotech, Tech hammered.
Overseas: FTSE, CAC, DAX, Hang Seng & Nikkei 225 UP.
Dollar UP vs. Euro 1.2793 & vs. Yen 112.98, XAU UP +4% & gold DOWN @ 625.3, XOI UP & crude DOWN @ 73.39, CRB commodities index DOWN @ 346.67
Quarterly earnings season kicks off afterhours with Alcoa +16% YTD. Tech continues to get hammered, YTD SOX -13%, SMH at a low not seen since May 05.
Until the market proves otherwise with additional conviction, our thumb is pointed down. Options unwind this week.
Support: DJIA 10650, SP500 1210, Nasdaq 2050; NDX 1500
May wholesale inventories +0.8% as sales +1.6%. A new record low inventory to sales ratio of 1.15 months with stockpiles at 35 days of sales. In the last year, Inventories +7.8%, Sales +12.1%.
May Consumer Credit +2.4%, or $4.4B, to $2.173T vs prior +5.2% or $9.3B.
YIELD CURVE INVERSION: Bonds DOWN with the 30 yr yield rising @ 5.17%; 10 yr @ 5.13; 5 yr @ 5.09; 2yr @ 5.17; 6 mo @ 5.27.
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 & 2yr above 30yr 06/13 - 06/30.
6mo above 10yr 06/02 -?; 2yr above 10yr 06/08 - ? 6mo above 30yr 06/13 - ?
MON, DJIA +13 on lower volume with midlin internals. This week DJIA +13, since 09/19/05 DJIA +452.
Indexes UP: DJUA. DOWN: NDX, NAZ, SOX, XAU all pounded.
Sectors UP: Airlines, Healthcare. DOWN: Biotech, Tech hammered.
Overseas: FTSE, CAC, DAX, Hang Seng & Nikkei 225 UP.
Dollar UP vs. Euro 1.2793 & vs. Yen 112.98, XAU UP +4% & gold DOWN @ 625.3, XOI UP & crude DOWN @ 73.39, CRB commodities index DOWN @ 346.67
Quarterly earnings season kicks off afterhours with Alcoa +16% YTD. Tech continues to get hammered, YTD SOX -13%, SMH at a low not seen since May 05.
Until the market proves otherwise with additional conviction, our thumb is pointed down. Options unwind this week.
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