Market Soapbox 08/22/07
WEN, rise Lazarus and tell others, DJIA +145 on very low volume with pretty internals. All UP BIG.
Bonds down 10 yr yield +5bps 4.64, $ down vs 1.3537E & up BIG vs 115.185Y, WTI crude down $69.26, gold up $668.7
Sun: "Friday New Homes & Durable Goods will not be pretty." Tues: "Wait till Friday to see if anyone steps on a land mine.
BOJ will not raise. Closing above these levels SP500 1455 & NDX 1925 is key to rebound."
Lehman Brothers the biggest underwriter of U.S. bonds backed by mortgages, has shuttered its BNC Mortgage LLC unit, affecting 1200 jobs and resulting in a $25 M charge.
Europes largest lender HSBC is closing offices as well. We've commented before on how someone will make a bundle picking up some choice debt at fire sales...
Pimco's Bill Gross is uncertain whether financial markets are yet "out of the woods"; he also plans to look for bargains over the next three months.
Long (2 year+) bond yields finally rising as bonds got beat down (2yr +13bps) while stocks got rescued. SP500 open 1447, rising 17 to close 1464.
Today, the market ignored bad debt & real estate news and seems to be building a base.
Financials have been flat or down, banks getting slapped, insurance catching a bid along with the other 80% of the market.
Carry traders are back, China raised yesterday, we suspect this carry trade haircut is already built in.
VIX is down, Yen is weakening as many believe BOJ will not raise tomorrow or in mid Sept. and nor will the Fed. They won't.
If the market can survive more bad news and stay above 200DMA SP500 1455, we could see a slow grind up till October. Fri: New Housing Sales awaits.
We still maintain that the confluence of news on economic, housing, debt market & Q3 reporting will force a surprise cut by the Fed on Oct 31st.
Mark it and watch closely. Often wrong, but never in doubt, this is the Nattering Naybob and you're not!
Bonds down 10 yr yield +5bps 4.64, $ down vs 1.3537E & up BIG vs 115.185Y, WTI crude down $69.26, gold up $668.7
Sun: "Friday New Homes & Durable Goods will not be pretty." Tues: "Wait till Friday to see if anyone steps on a land mine.
BOJ will not raise. Closing above these levels SP500 1455 & NDX 1925 is key to rebound."
Lehman Brothers the biggest underwriter of U.S. bonds backed by mortgages, has shuttered its BNC Mortgage LLC unit, affecting 1200 jobs and resulting in a $25 M charge.
Europes largest lender HSBC is closing offices as well. We've commented before on how someone will make a bundle picking up some choice debt at fire sales...
Pimco's Bill Gross is uncertain whether financial markets are yet "out of the woods"; he also plans to look for bargains over the next three months.
Long (2 year+) bond yields finally rising as bonds got beat down (2yr +13bps) while stocks got rescued. SP500 open 1447, rising 17 to close 1464.
Today, the market ignored bad debt & real estate news and seems to be building a base.
Financials have been flat or down, banks getting slapped, insurance catching a bid along with the other 80% of the market.
Carry traders are back, China raised yesterday, we suspect this carry trade haircut is already built in.
VIX is down, Yen is weakening as many believe BOJ will not raise tomorrow or in mid Sept. and nor will the Fed. They won't.
If the market can survive more bad news and stay above 200DMA SP500 1455, we could see a slow grind up till October. Fri: New Housing Sales awaits.
We still maintain that the confluence of news on economic, housing, debt market & Q3 reporting will force a surprise cut by the Fed on Oct 31st.
Mark it and watch closely. Often wrong, but never in doubt, this is the Nattering Naybob and you're not!
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