Market Soapbox 03/13/07

TUE, triple digit plunge, DJIA -243 on avergae volume with fugly internals. All DOWN BIG. Bonds up BIG 10 yr yield -6 bps 4.49, $ down BIG vs 116.5y & down vs 1.3198E, WTI crude down 1.4% $58.05, gold down $645.90.

A triple digit slam, as something nasty peaked out the woodshed door. Yen jumping again as the carry trade continues to unwind & more sub prime worries as delinquency rates ratchet up.

Viacom suing Google & UTube for $1 Billion on copyright infringement. Subprime won't spill over into the "mainstream" economy, DUH!!! GM -3.4% after saying GMAC's severely depressed nonprime portfolio will constrain overall results.

In a redux of 02/27, there were no safe havens excepting the YEN and US Bonds. $8 B 10 year note auction, solid bid to cover 2.64, but indirect bidders a weak 15.4%, high yield 4.52%.

SP500 falling from 1409 to 1377 in short order. Support at 1397 was obliterated and perhaps the rug is getting pulled out on this oversold bounce sooner than we anticipated.

The VIX jumped 19% to 18.4 as investor anxiety heightened. This plays out one of two ways, another "oversold" computer trading PPT bounce leaping back to 1417-1428 area over the next 3 days, then a fall from grace.

Or something really nasty comes out of the woodshed, right here and right now, and we breech SP500 1374 & DJIA 12K in the AM, seeing SP500 1340 by the afternoon and 1325 in a few days.

Comments