Market Observations 12/27/06
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.
$20B 2 year Treasury note auction, indirect bidder participation of only 34.7%. Well below the 56% in November, bid to cover of 2.46 was the lowest since August. Tomorrow 5 yr T note auction.
$ down slightly vs Yen 118.78, Euro 1.3121, Bonds down BIG with the 10 yr hitting a 5 week high of 4.65%, 30 yr @ 4.78, crude hammered over 2 days to about $60.38, natural gas getting punked $5.83, gold rising back to $630 level.
Two pullbacks to SP500 1415 and a touch at 1410 have given enough energy to spurt to 1427 this week. The pullback in crude has given new hope for housing (HGX), transports (DJTA) & retail (RTH).
Short covering from two weeks ago has been replaced with year end portfolio window dressing. Since Fri a nice bounce, today DJIA up above 12500 all time high.
We see 1432-1435 sometime tomorrow, then perhaps a small pullback starting in the afternoon continuing on Friday? Tomorrow, Chicago PMI & more important Existing homesales await.
What the New Year brings with full participation and increased volume is anyone's guess.
A rapid pullback, descent and overdue correction or a boost to the 1440 SP500 and 830 RUT area continuing the rally until mid Jan when BOJ raises, affecting the carry trade?
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!
$20B 2 year Treasury note auction, indirect bidder participation of only 34.7%. Well below the 56% in November, bid to cover of 2.46 was the lowest since August. Tomorrow 5 yr T note auction.
$ down slightly vs Yen 118.78, Euro 1.3121, Bonds down BIG with the 10 yr hitting a 5 week high of 4.65%, 30 yr @ 4.78, crude hammered over 2 days to about $60.38, natural gas getting punked $5.83, gold rising back to $630 level.
Two pullbacks to SP500 1415 and a touch at 1410 have given enough energy to spurt to 1427 this week. The pullback in crude has given new hope for housing (HGX), transports (DJTA) & retail (RTH).
Short covering from two weeks ago has been replaced with year end portfolio window dressing. Since Fri a nice bounce, today DJIA up above 12500 all time high.
We see 1432-1435 sometime tomorrow, then perhaps a small pullback starting in the afternoon continuing on Friday? Tomorrow, Chicago PMI & more important Existing homesales await.
What the New Year brings with full participation and increased volume is anyone's guess.
A rapid pullback, descent and overdue correction or a boost to the 1440 SP500 and 830 RUT area continuing the rally until mid Jan when BOJ raises, affecting the carry trade?
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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