Market Soapbox 11/20/08

THU, crash, DJIA -445 on very high volume with disasterous internals. All DOWN 6%+.

Bonds up HUGE 10 yr -31bps 3.01. $ up vs E1.2472 & down BIG vs 94.04y, WTI -10% $48.69, gold +1% $745.7; TED Spread +1bps 2.12%; 3mo Libor flat 2.15

SP500 806, rise to 820, crash to 747, close 752. NDX 1087, gap down 1076, bounce to 1115, crash to close 1036.

FRI: Business Sales Sep -2%; Retail Sales Oct -1.3%; ex-auto -2.2%; the longest string of declines since records began in 1992.

MON: Sillybank cutting 52K jobs or 14%; Lowes warned; Target cut capital spending by $1 billion. Japan -0.4% GDP; joins Eurozone in official recession.

TUE: Oct Core PPI +0.4%. Semiconductor market to shrink by 2.2% in 2009. Treasury bought $33.6 billion in preferred stock from 21 banks, total at $158 billion.

WEN: Oct NAHB/WF Housing Index at 9; Housing Starts -4.5% at 791K; Building Permits -12% at 708K; all three at the lowest levels on record. CPI Oct -1%; the largest decline since 1947.

Today, Dell Q3 net -5%; Initial Claims +27K at 542K; continuing claims +4 million; both at 26 yr highs. Philadelphia Fed Nov -39.3 vs -37.5 an 18 yr low.

VIX hits all time high 80; SP500 hits 11 yr low, YTD -49%; a record drop in its 80 year history. GE yield now at 10%.

Whats that brand name? GE? Sillybank? Jefferson County? California? Argentina? Fed funds at zero? crude at $35? and the Dow at 4K? How bout all of the above?

As Gov. Palin would say, you betcha! And maybe sooner than even I think. A bounce? perhaps. Options expire tomorrow, where is the short covering? Doh!

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

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