Market Soapbox 03/14/07

WEN, a whipsaw day, DJIA +57 on higher volume with decent internals. All UP cept DJTA, AMEX. Bonds down 10yr yield +4 bps 4.53, $ up vs 117.04y & down vs 1.3224E, WTI crude up $58.27, gold down $645.40

Lehman posts record Q1 results, mgmt issues an understatement re: troubling subprime sector will "continue to face headwinds in the near term".

The VIX jumped 17% to 21.25 then fell to 17.27 as investors got whipsawed today while the DJIA spanned 194 points, dropping below 12K for the 1st time since early Nov 06.

SP500 up 7 early at 1384, then fell like a rock 21 to 1363, breeching the previous low of 1374, then rose from the ashes 24 to 1387. Puts and Calls alike made big money, then turned and got burned as the weak hands got shaken out.

A URL link was the big reason why all three major indices closed near session highs. Dow component Microsoft surged 2.5% on news Lenovo Group will make Microsoft's search technology the main portal on its PCs. Alrighty then...

We see perhaps more short covering to rise to 1392 or 1401, but then?? Something nasty is still lurking behind the woodshed door and the minute New Century files Ch 11 BK, is the minute it comes out large and in charge.

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