Market Soapbox 02/05/08
TUE, massive followthrough, DJIA -370 on average volume with horrible internals. All DOWN BIG.
Bonds up 10 yr yield -8bps 3.57, $ up BIG vs 1.4638E & vs 106.83y, WTI -2% 88.17, gold -2% $892.1. TED spread up +7bps 0.98%.
As per our comments earlier today, the dollar got massive support.
Last THU: "NDX 1850 & SP500 1375 will provide a stearn test." And they did...
SP500 open 1380, collapse to close 1336. NDX gap down 1828 to 1798, rise to 1813, collapse to close 1773.
Does anyone really think rate cuts and free money, can solve the deep rooted systemic problems, in this globalized economic house of cards?
Last week: the largest weekly gain in 5 years on 125 bps in cuts. This week: SP500 126 points up since 01/23 surprise cut; gave back 61 in last 2 days.
European banks start reporting tomorrow, better pray the news is good, and the BOE & ECB cut, otherwise NDX 1620 coming into view soon.
Can't ya smell that smell? Fear and the odor of a major guarantor downgrade is in the air.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Bonds up 10 yr yield -8bps 3.57, $ up BIG vs 1.4638E & vs 106.83y, WTI -2% 88.17, gold -2% $892.1. TED spread up +7bps 0.98%.
As per our comments earlier today, the dollar got massive support.
Last THU: "NDX 1850 & SP500 1375 will provide a stearn test." And they did...
SP500 open 1380, collapse to close 1336. NDX gap down 1828 to 1798, rise to 1813, collapse to close 1773.
Does anyone really think rate cuts and free money, can solve the deep rooted systemic problems, in this globalized economic house of cards?
Last week: the largest weekly gain in 5 years on 125 bps in cuts. This week: SP500 126 points up since 01/23 surprise cut; gave back 61 in last 2 days.
European banks start reporting tomorrow, better pray the news is good, and the BOE & ECB cut, otherwise NDX 1620 coming into view soon.
Can't ya smell that smell? Fear and the odor of a major guarantor downgrade is in the air.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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