Market Soapbox & Observations 02/28/07
WEN, a wavy bounce, DJIA +52 on higher volume with nice internals.
All UP cept, DJTA, DJUA. Bonds down 10yr yield +5 bps 4.56, $ up vs 118.405y & up vs 1.3234E, WTI crude up $61.82, gold up $673.10
Beware the Ides of March, the 3rd is right around the corner, the 7th anniversary of the beginning of the end for dot com...
In yesterday's (A) wave down Shanghai surprise where everybody got Wang-Chunged...
the DJIA was down as much as 546 points, the biggest one day point decline since the markets reopened on September 17, 2001. That day's plunge, 684.81 points, or 7.1%.
VIX and VXN (soaring 59% and 39%, respectively... Since bottoming in July, the S&P 500 had surged almost 18% with nary a 2% pullback..
All major indices fell from well above 15 DMA to slice through 20, 25, 50 and in most cases 75 DMA's.
The candle pattern on the DJUA after spiking to an all time high the prior day, is spectacular.
Today, portfolio managers made month end adjustments and scooped up some "bargains", VIX and VXN plunging 18% and 16%, respectively....
Facilitating a (B) wave bounce up from SP500 1398 to 1416 intraday. The DJUA, DJTA, RUT, MID & XOI bled into the close along with the DJIA.
In the next few days, watch for a drop below 1395, this would signify that the market has truly changed direction in the near to mid term (2-3 weeks).
We sense some potentially bad economic news tomorrow, slowdowns in ISM, Auto Sales, Construction Spending, and an increase in Initial Claims.
More important than the news itself or the spin, how will investors react? will they ignore or pay attention?
If the news is bad and investors pay attention, a nasty C down could ensue.
All UP cept, DJTA, DJUA. Bonds down 10yr yield +5 bps 4.56, $ up vs 118.405y & up vs 1.3234E, WTI crude up $61.82, gold up $673.10
Beware the Ides of March, the 3rd is right around the corner, the 7th anniversary of the beginning of the end for dot com...
In yesterday's (A) wave down Shanghai surprise where everybody got Wang-Chunged...
the DJIA was down as much as 546 points, the biggest one day point decline since the markets reopened on September 17, 2001. That day's plunge, 684.81 points, or 7.1%.
VIX and VXN (soaring 59% and 39%, respectively... Since bottoming in July, the S&P 500 had surged almost 18% with nary a 2% pullback..
All major indices fell from well above 15 DMA to slice through 20, 25, 50 and in most cases 75 DMA's.
The candle pattern on the DJUA after spiking to an all time high the prior day, is spectacular.
Today, portfolio managers made month end adjustments and scooped up some "bargains", VIX and VXN plunging 18% and 16%, respectively....
Facilitating a (B) wave bounce up from SP500 1398 to 1416 intraday. The DJUA, DJTA, RUT, MID & XOI bled into the close along with the DJIA.
In the next few days, watch for a drop below 1395, this would signify that the market has truly changed direction in the near to mid term (2-3 weeks).
We sense some potentially bad economic news tomorrow, slowdowns in ISM, Auto Sales, Construction Spending, and an increase in Initial Claims.
More important than the news itself or the spin, how will investors react? will they ignore or pay attention?
If the news is bad and investors pay attention, a nasty C down could ensue.
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