Market Soapbox 04/08/08
MON, wavy gravy, DJIA +3 on lower volume with midlin internals.
The market gapped up with NDX hitting 1885.93 and SP500 rising to 1386.74, then fell.
Both our numbers have been hit, expect further downturn.
TUE, downturn, DJIA -36; SP500 -7 on tepid volume with dismal internals. All DOWN cept DJUA, XOI.
Short term bonds up 10 yr yield +2bps 3.56. $ up vs 1.571€ & vs 102.57y, WTI down $108.86, gold down $918. TED spread down -3bps 1.33%
SUN: BOE & ECB rate cuts with rosy report from GE could send us back to test 1400.
However, we sense something very nasty coming out of the woodshed, and it could be a major name brand.
SP500 open 1370, fall to 1360, rise to 1365. NDX 1865 gap down to open 1853, rise to 1858, fall to 1837, close 1846.
Alcoa missed, AMD warns Q1 rev to be short, due to lower sales across all business segments and will lay off 10% of workforce.
FOMC sez contraction "likely" with little indication that housing has begun to stabilize.
Goldman Sachs reiterated its SELL your Fannie & Freddie ratings.
For everyone cept the Naybob faithful, WaMu seemingly fell from the sky. Will a Northern Rock like run on WaMu deposits ensue?
Often wrong, but never in doubt, this is the Nattering Naybob and you're not
The market gapped up with NDX hitting 1885.93 and SP500 rising to 1386.74, then fell.
Both our numbers have been hit, expect further downturn.
TUE, downturn, DJIA -36; SP500 -7 on tepid volume with dismal internals. All DOWN cept DJUA, XOI.
Short term bonds up 10 yr yield +2bps 3.56. $ up vs 1.571€ & vs 102.57y, WTI down $108.86, gold down $918. TED spread down -3bps 1.33%
SUN: BOE & ECB rate cuts with rosy report from GE could send us back to test 1400.
However, we sense something very nasty coming out of the woodshed, and it could be a major name brand.
SP500 open 1370, fall to 1360, rise to 1365. NDX 1865 gap down to open 1853, rise to 1858, fall to 1837, close 1846.
Alcoa missed, AMD warns Q1 rev to be short, due to lower sales across all business segments and will lay off 10% of workforce.
FOMC sez contraction "likely" with little indication that housing has begun to stabilize.
Goldman Sachs reiterated its SELL your Fannie & Freddie ratings.
For everyone cept the Naybob faithful, WaMu seemingly fell from the sky. Will a Northern Rock like run on WaMu deposits ensue?
Often wrong, but never in doubt, this is the Nattering Naybob and you're not
Comments
"We often hear that these problems are caused by the sub-prime crisis in the US. But it's worth remembering that whilst overly loose lending practices in the US
pushed house prices to six-times the average salary, in the UK house prices are now nine-times the average salary.
Like we keep saying, when the prices get back down to what salary/rent's will support, prices will stabilize."
It begs a question: If six times is too many, what would be more reasonable?