Market Soapbox 09/18/08

THU, lemming bounce, DJIA +410 on high volume with sterling internals. All UP BIG cept XAU.

Bonds down 10 yr +12bps 3.53. $ down vs 1.435€ & up vs 105.42y, WTI +2% $98.76, gold down $856.9; TED Spread up +11bps 3.13%

SP500 1155, fall to 1133, rally to 1211, close 1206. NDX 1632, gap up 1668, plunge to 1606, rally to 1704, close 1697.

FRI: The mother of all bailouts $5 Trillion for FNMA & FHLMC.

MON: BofA bails out Merrill Lynch and Lehman files the mother of all BK's. The 6th largest DJIA decline in history.

TUE: The mother of all insurance bailouts, the Fed taking an 80% interest in AIG with an $85 billion bridge loan.

WEN, the NDX hit a 2yr low & SP500 down 57 pts, hit a 3.5 year low... golds largest single day gain ever 10%... perhaps a bounce at NDX 1600?

Today, NDX hits 1606, then boing! In came the lemmings... buoyed by Treasury talk of a modernized RTC to buy all the bad debt...

Again, confirming the stagflation numbers: ConAgra Q1 net on continuing operations -25%; sales +17%; ; FedEx, #2 package shipper, net -22%; volume -5%; revenue +8%.

This week the Fed bailed $140 billion into repo, today, $180 billion on the dollar swap line.

Gold up 9% intraday... financials down 6%, closing up 11%, VIX multiyear high at 40

CALPERS no longer lending out shares of Goldman Sachs & Morgan Stanley. Many on the verge of insolvency, talking merger & looking for suckers, er, I mean buyers.

Taking a number, Morgan Stanley, Wachovia & WaMu, NEXT!

Often wrong, but never in doubt, this is the Nattering Naybob and you're not.

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