Market Soapbox 08/21/07
TUE, more chop & drop, DJIA -30 on low volume with so-so internals. All UP cept XOI, XMI, OEX, DJTA.
Bonds up 10 yr yield -5 bps 4.59, $ up vs 1.347E & down vs 114.47Y, WTI crude down 2.3% $69.47, gold down $666.2
Helicopter drop?? Federal Reserve Bank of New York lowered the fee bond dealers pay to borrow its Treasuries by 50bps to 0.50%, in a bid to ease a shortage in the market for loans backed by the securities.
The New York Fed last lowered the fee rate on June 26, 2003, the day after policy makers cut their target overnight rate to a 40 year low of 1%.
3 & 6 month yields rose for the first time in 6 days, 3 month yield +43 bps to 3.61%. Demand at the the Treasury's sale of $32B in four-week bills was the weakest since July 2001.
Long (2 year+) bond yields still falling. Commodities still getting creamed as leverage playas unwind crude under 70. SP500 open 1445, rising 10 to 1455, bleed to close 1447.
Sunday: "We still see instability in the markets and sense that further bad housing & debt market news will have this market back on its knees in the near future. Friday New Homes & Durable Goods will not be pretty. "
Yesterday: "Watch resistance 1455 and wait till Friday to see if anyone steps on a land mine. BOJ will not raise."
Ebullient tech: Watch NDX 1925 resistance as well, closing above these levels is key to building a firm rebound.
Repelling rapidly from these levels could mean the frazzled rope breaks with 1370 & 1320 SP500 in full view and fast.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not!
Bonds up 10 yr yield -5 bps 4.59, $ up vs 1.347E & down vs 114.47Y, WTI crude down 2.3% $69.47, gold down $666.2
Helicopter drop?? Federal Reserve Bank of New York lowered the fee bond dealers pay to borrow its Treasuries by 50bps to 0.50%, in a bid to ease a shortage in the market for loans backed by the securities.
The New York Fed last lowered the fee rate on June 26, 2003, the day after policy makers cut their target overnight rate to a 40 year low of 1%.
3 & 6 month yields rose for the first time in 6 days, 3 month yield +43 bps to 3.61%. Demand at the the Treasury's sale of $32B in four-week bills was the weakest since July 2001.
Long (2 year+) bond yields still falling. Commodities still getting creamed as leverage playas unwind crude under 70. SP500 open 1445, rising 10 to 1455, bleed to close 1447.
Sunday: "We still see instability in the markets and sense that further bad housing & debt market news will have this market back on its knees in the near future. Friday New Homes & Durable Goods will not be pretty. "
Yesterday: "Watch resistance 1455 and wait till Friday to see if anyone steps on a land mine. BOJ will not raise."
Ebullient tech: Watch NDX 1925 resistance as well, closing above these levels is key to building a firm rebound.
Repelling rapidly from these levels could mean the frazzled rope breaks with 1370 & 1320 SP500 in full view and fast.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not!
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