Market Soapbox 09/04/08
THU, wide & deep, DJIA -345 on average volume with devastating internals. All DOWN 3%.
Bonds up 10 yr -8bps 3.62. $ UP BIG vs 1.4229€ & down HUGE vs 106.305y, WTI -2% $107.46, gold down $798.2; TED Spread up +1bps 1.14%
SP500 1275, gap down 1271, dive to 1232, close 1237. NDX 1833, gap down 1819, dive to close 1775.
FRI: Personal Income & Spending shows: incomes declined; largest spending drop in 4 years; largest price inflation in 17 years.
TUE: manufacturing in contraction for the 9th straight month, 16th straight decline in private residential construction spending as the main economic engine is off 40% Yoy.
WEN: double digit Yoy auto sales declines. Fed Beige Book references slowing economy & weakening mortgage demand.
Today, Merrill Lynch having trouble liquidating assets, AIG trying to get troubled debt off the books...
Lehman may shift $32 billion in troubled assets to a "bad bank"; Atticus Capital may be quietly liquidating.
Unemployment rising, durable productivity falling, under the covers, ISM services still contracting.
In the face of bad macro & micro news on all fronts, despite the Yen carry trade unwinding, the Dollar advancing vs Euro & other currencies...
commodities plunging, oil -6.5% this week under $107, all to no avail, the worst losing streak since January.
facing a debt deleveraging Tsunami, Gross cries for a bailout of the failed bailouts, but no one can stop this trainwreck...
What goes up in a highly leveraged manner, to artificial, unrealistic and unsupportable heights, must come crashing down.
Tomorrow non farms payroll... Can you say negative job growth in this emasculated economy for the 8th straight month? I can.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Bonds up 10 yr -8bps 3.62. $ UP BIG vs 1.4229€ & down HUGE vs 106.305y, WTI -2% $107.46, gold down $798.2; TED Spread up +1bps 1.14%
SP500 1275, gap down 1271, dive to 1232, close 1237. NDX 1833, gap down 1819, dive to close 1775.
FRI: Personal Income & Spending shows: incomes declined; largest spending drop in 4 years; largest price inflation in 17 years.
TUE: manufacturing in contraction for the 9th straight month, 16th straight decline in private residential construction spending as the main economic engine is off 40% Yoy.
WEN: double digit Yoy auto sales declines. Fed Beige Book references slowing economy & weakening mortgage demand.
Today, Merrill Lynch having trouble liquidating assets, AIG trying to get troubled debt off the books...
Lehman may shift $32 billion in troubled assets to a "bad bank"; Atticus Capital may be quietly liquidating.
Unemployment rising, durable productivity falling, under the covers, ISM services still contracting.
In the face of bad macro & micro news on all fronts, despite the Yen carry trade unwinding, the Dollar advancing vs Euro & other currencies...
commodities plunging, oil -6.5% this week under $107, all to no avail, the worst losing streak since January.
facing a debt deleveraging Tsunami, Gross cries for a bailout of the failed bailouts, but no one can stop this trainwreck...
What goes up in a highly leveraged manner, to artificial, unrealistic and unsupportable heights, must come crashing down.
Tomorrow non farms payroll... Can you say negative job growth in this emasculated economy for the 8th straight month? I can.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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