Market Soapbox 06/11/07
MON, wavy gravy DJIA +1 on lower volume with midlin internals. All DOWN cept DJUA, SP500, XAU, XOI.
Bonds down, 10 yr yield +2 bps 5.14, $ up vs 1.3354E & vs 121.795Y, WTI crude up 2% $65.97, gold up 1% $659
DJIA up 37 for 52; 48 record closes since Oct.; 26 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 44 for 63.
Over the last 3 weeks, some mighty magnetic numbers... SOXX 490-500, RUT 835, NDX 1905, MID 900 and SP500 1505. They still hold this market captive...
Friday: "Pimco's Bill Gross said he is now a bear market manager after 25 years of being a bond bull."
Bonds continue to slip, watch tomorrows 10 yr auction for indirect bidder participation.
Friday: "We lean towards another run up as yesterday the Fed injected another $14B in temporary open market operations."
SP500 has bounced from 1488 to 1515, bleeding into the close at 1509. Is it a dead cat?
Looking at the DJUA since 05/21, and SOXX since 05/09, a case could be made for further downside.
Fri & today another $13.75 Billion... expect another $25-30B by Wen... combine this with short covering and perhaps this dead man walking keeps hobbling along.
Although Asian & Euro markets have rebounded, there is true danger with bonds getting clubbed.
If SP500 jumps to close over 1522 while bonds attempt at rally, this storm may pass. Often wrong, but never in doubt, this is the Nattering Naybob and your not!
Bonds down, 10 yr yield +2 bps 5.14, $ up vs 1.3354E & vs 121.795Y, WTI crude up 2% $65.97, gold up 1% $659
DJIA up 37 for 52; 48 record closes since Oct.; 26 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 44 for 63.
Over the last 3 weeks, some mighty magnetic numbers... SOXX 490-500, RUT 835, NDX 1905, MID 900 and SP500 1505. They still hold this market captive...
Friday: "Pimco's Bill Gross said he is now a bear market manager after 25 years of being a bond bull."
Bonds continue to slip, watch tomorrows 10 yr auction for indirect bidder participation.
Friday: "We lean towards another run up as yesterday the Fed injected another $14B in temporary open market operations."
SP500 has bounced from 1488 to 1515, bleeding into the close at 1509. Is it a dead cat?
Looking at the DJUA since 05/21, and SOXX since 05/09, a case could be made for further downside.
Fri & today another $13.75 Billion... expect another $25-30B by Wen... combine this with short covering and perhaps this dead man walking keeps hobbling along.
Although Asian & Euro markets have rebounded, there is true danger with bonds getting clubbed.
If SP500 jumps to close over 1522 while bonds attempt at rally, this storm may pass. Often wrong, but never in doubt, this is the Nattering Naybob and your not!
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