Market Observations 12/14/06
In our top story tonight, the leader of al-Qaida in Iraq, Abu Musab al-Zarqawi, is STILL dead and someone else has taken his place.
Oil rising, the dollar rebounding as bonds (TNX, TYX)and gold continue their pullback with stocks rising.
A broadbased short covering surge to all time closing high for DJIA 12416 & NYA; 6 year high TMWX, SP500, OEX.
Still lagging on intraday & closing highs DJ COMP, NDX, NAZ, RUT & MID.
NDX touched 1811 then fell to 1805. Followthrough to 1828 is critical to get to 1861. SP500 blew through 1415 to acheive 1425, are we over the hump?
Some more upwards grind on year end window dressing, then a small pullback to 1397-1405 area before the next ramp up to 1440 seems in order, BUT...
today the VIX hit an all time intraday low at 9.64. Should VIX break down close to 9 or below on an SP500 run to 1440, this could form a nasty spiking top.
Not to be discounted.... over the last 9 days, bonds broke down BIG, the 30 yr fell through 112.5 pushing yields up.
Should the 30 yr fall through 111, the resulting rise in rates and further rise in crude could become a catalyst for a reversal of the current stock market uptrend.
Keep it tween da ditches, we take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong, this is The Nattering Naybob and your NOT!
Oil rising, the dollar rebounding as bonds (TNX, TYX)and gold continue their pullback with stocks rising.
A broadbased short covering surge to all time closing high for DJIA 12416 & NYA; 6 year high TMWX, SP500, OEX.
Still lagging on intraday & closing highs DJ COMP, NDX, NAZ, RUT & MID.
NDX touched 1811 then fell to 1805. Followthrough to 1828 is critical to get to 1861. SP500 blew through 1415 to acheive 1425, are we over the hump?
Some more upwards grind on year end window dressing, then a small pullback to 1397-1405 area before the next ramp up to 1440 seems in order, BUT...
today the VIX hit an all time intraday low at 9.64. Should VIX break down close to 9 or below on an SP500 run to 1440, this could form a nasty spiking top.
Not to be discounted.... over the last 9 days, bonds broke down BIG, the 30 yr fell through 112.5 pushing yields up.
Should the 30 yr fall through 111, the resulting rise in rates and further rise in crude could become a catalyst for a reversal of the current stock market uptrend.
Keep it tween da ditches, we take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong, this is The Nattering Naybob and your NOT!
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