Market Observations 06/27/08
Resistance: DJIA 11935 (800DMA); SP500 1330 (900DMA); NAZ 2420 (600DMA); NDX 1950 (300DMA)
Support: DJIA 11300 (1250DMA); SP500 1275 (1200DMA); NAZ 2300 (950DMA); NDX 1830 (550DMA)
SP500 open 1283, touch 1289, dip to 1272, close 1278. NDX open 1854, rise to 1865, dive to 1829, bounce to close 1855.
WEN: Despite tech head fake in progress SOXX +2.5%; NDX +1.4%, we are just one straw from breaking the camels back and heading for March lows.
If you didn't get out of this suckers rally yet, double check your parachute and floatation device, we sense something wicked this way comes.
THU: Deja Vu all over again? This month the DJIA -9.4%, its worst June since an 18% tumble in 1930 during the Great Depression.
This weeks lowlights: Oil hit $142; +45% YTD; PG sank to a 52 week low at $60.49, DJIA hit 11,297.
Carry trade unwind: $ clubbed back to 106 yen. Credit contraction: TED spread widened 25% in a week to 1.14%
This week: SP500 -3%; DJIA -4%; NAZ -3.8%; YTD: SP500 -13%; DJIA -14%; NAZ -13%.
How low can it go? NDX, MID & RUT still have a ways to go before hitting their March lows.
Fitch Ratings put Wachovia on rating watch negative in light of...
"continued headwinds facing U.S. consumer asset quality and indications of further meaningful home price deterioration in certain markets".
More name brands... The MBIA & Ambac downgrade fallout is getting worse by the day.
MBIA: "We have more than sufficient liquid assets to meet any additional requirements arising from any terminations or collateral posting requirements."
Translated: MBIA will have to tap assets pledged to back other commitments, which will lead to further downgrades.
We suspect an MBIA default to come as they are woefully short operating capital.
Another headfake before new depths? Perhaps, but not a spirited one, this dead man walking is ready to lay down in the casket for the big sleep.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Support: DJIA 11300 (1250DMA); SP500 1275 (1200DMA); NAZ 2300 (950DMA); NDX 1830 (550DMA)
SP500 open 1283, touch 1289, dip to 1272, close 1278. NDX open 1854, rise to 1865, dive to 1829, bounce to close 1855.
WEN: Despite tech head fake in progress SOXX +2.5%; NDX +1.4%, we are just one straw from breaking the camels back and heading for March lows.
If you didn't get out of this suckers rally yet, double check your parachute and floatation device, we sense something wicked this way comes.
THU: Deja Vu all over again? This month the DJIA -9.4%, its worst June since an 18% tumble in 1930 during the Great Depression.
This weeks lowlights: Oil hit $142; +45% YTD; PG sank to a 52 week low at $60.49, DJIA hit 11,297.
Carry trade unwind: $ clubbed back to 106 yen. Credit contraction: TED spread widened 25% in a week to 1.14%
This week: SP500 -3%; DJIA -4%; NAZ -3.8%; YTD: SP500 -13%; DJIA -14%; NAZ -13%.
How low can it go? NDX, MID & RUT still have a ways to go before hitting their March lows.
Fitch Ratings put Wachovia on rating watch negative in light of...
"continued headwinds facing U.S. consumer asset quality and indications of further meaningful home price deterioration in certain markets".
More name brands... The MBIA & Ambac downgrade fallout is getting worse by the day.
MBIA: "We have more than sufficient liquid assets to meet any additional requirements arising from any terminations or collateral posting requirements."
Translated: MBIA will have to tap assets pledged to back other commitments, which will lead to further downgrades.
We suspect an MBIA default to come as they are woefully short operating capital.
Another headfake before new depths? Perhaps, but not a spirited one, this dead man walking is ready to lay down in the casket for the big sleep.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Comments