Market Soapbox 06/05/07
TUE, broadbased consolidation, DJIA -81 on average volume with ugly internals. All DOWN, Bonds slammed...
10 yr yield +5 bps 4.98, $ down vs 1.352E & vs 121.37Y, WTI crude down $65.61, gold down $675.1
Scooter Libby got 30 months in Leisure World for lying in the Plame CIA outing, too bad it wasn't death by firing squad for treason...
then he would have sung like a canary and taken down Chaney et al... Bernanke was somewhat frank today, his comments along with rising rates helped push down equities.
DJIA up 35 for 48; 48 record closes since Oct.; 26 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 42 for 59.
Over the last 3 weeks, some magic numbers with strong resistance... SOXX 500-505. it still stands as the Semis have repelled from 495 3 trading days ago.
Last week: "Another "shanghai surprise" and the market might notice.". Shanghai has now pulled back 16% in 4 trading days and finally the DJIA took notice.
Last week, "retest of 1520-1525 to come". Today, triple digit decline with a bounce into the close at 1530.
SP500 fell from 1540 to hit our target of 1525 intraday, a side of options unwind anyone? FYI Max pain is at 1515-1520.
Friday: "10 year yield at 4.90 highest since Aug 06... somethings gonna give if it heads for 5..."
Yesterday: "China & Japan have cut back bond purchases, the Yuan $ band was loosened, then Kuwait & Syria cut their $ pegs. This all points to less dollar buying, and that means less bond purchases and higher interest rates."
Today, 10 yr hit 4.99 closing at 4.98. Higher rates mean less money for non productive M&A and overleveraged smoke n mirrors LBO's.
This "cheap money" shuffling, along with $140 Billion in handouts from the Treasury over the last 9 months (vis a vis the increase in repos, Thank Hank Paulson).....
have been providing life support for this "dead man walking" stock market and keeping the bond market afloat.
We are playing it accordingly and patiently awaiting the "big squeeze" later this summer or early fall.
Meanwhile, barring more "Shang-hai" on the down lo mein, we should bounce to test 1545-1550 area by options expiration next Friday.
Often wrong, but never in doubt, this is the Nattering Naybob and your not!
10 yr yield +5 bps 4.98, $ down vs 1.352E & vs 121.37Y, WTI crude down $65.61, gold down $675.1
Scooter Libby got 30 months in Leisure World for lying in the Plame CIA outing, too bad it wasn't death by firing squad for treason...
then he would have sung like a canary and taken down Chaney et al... Bernanke was somewhat frank today, his comments along with rising rates helped push down equities.
DJIA up 35 for 48; 48 record closes since Oct.; 26 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 42 for 59.
Over the last 3 weeks, some magic numbers with strong resistance... SOXX 500-505. it still stands as the Semis have repelled from 495 3 trading days ago.
Last week: "Another "shanghai surprise" and the market might notice.". Shanghai has now pulled back 16% in 4 trading days and finally the DJIA took notice.
Last week, "retest of 1520-1525 to come". Today, triple digit decline with a bounce into the close at 1530.
SP500 fell from 1540 to hit our target of 1525 intraday, a side of options unwind anyone? FYI Max pain is at 1515-1520.
Friday: "10 year yield at 4.90 highest since Aug 06... somethings gonna give if it heads for 5..."
Yesterday: "China & Japan have cut back bond purchases, the Yuan $ band was loosened, then Kuwait & Syria cut their $ pegs. This all points to less dollar buying, and that means less bond purchases and higher interest rates."
Today, 10 yr hit 4.99 closing at 4.98. Higher rates mean less money for non productive M&A and overleveraged smoke n mirrors LBO's.
This "cheap money" shuffling, along with $140 Billion in handouts from the Treasury over the last 9 months (vis a vis the increase in repos, Thank Hank Paulson).....
have been providing life support for this "dead man walking" stock market and keeping the bond market afloat.
We are playing it accordingly and patiently awaiting the "big squeeze" later this summer or early fall.
Meanwhile, barring more "Shang-hai" on the down lo mein, we should bounce to test 1545-1550 area by options expiration next Friday.
Often wrong, but never in doubt, this is the Nattering Naybob and your not!
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