Market Soapbox & Observations 01/23/07
Resistance: DJIA 12555; SP500 1431; Nasdaq 2445; NDX 1790; RUT 790
Support: DJIA 12475, SP500 1420, Nasdaq 2405; NDX 1765; RUT 775
MON, a broadbased downsurge, DJIA -88 on average volume with ugly internals. All DOWN. Bonds up 10 yr 4.76, $ up vs 121.65y & 1.2948E, crude down -1.6% $51.13, gold down $632.80
TUE, commodities led split tape rebound, DJIA +57 on average volume with nice internals. All UP cept NDX & Tech. Bonds down 10yr 4.81, $ up vs 121.66y & down vs 1.3016E, crude up 4.5% $54.94, gold up 2% $646.60
Today, no need to trot out the peak oil shills or Nigerian rebels. U.S. Energy Secretary Samuel Bodman's announcement that the government will boost the size of the nation's emergency oil reserve had crude jumping up to a two week high.
From Jubak: In 2000, the government's liabilities were just $20 trillion or two times the size of the economy. Today they are a staggering $50 trillion, a $30 trillion increase in only 7 years.
On Jan 11, David Walker, comptroller general, testified that by 2030, assuming that discretionary spending grows at the same rate as the economy and the Bush tax cuts are made permanent...
government spending on interest on the national debt, Social Security, Medicare and Medicaid would eat up 100% of government revenues.
Thanks Dubya, maybe the oil companies, big business, christian coalition or church can bail us out? Do ya think?
Xerox beat the number, but revenue woes hurt the stock. B of A & Wachovia posted large profits on merger revenues. Yahoo profits dropped and AMD posted a loss
From Fleck: The risky BBB-minus tranche of the June 2002 ABX.HE (a synthetic version of assets backed by U.S. home loans) just traded at a new low.
Its down more than eight points from early September and the credit default swap has now blown out to 477 basis points.
As a result, sub prime lenders such as New Century Financial, Accredited Home Lenders and NovaStar Financial all seem primed to hit the wall this year.
Gold soaring as the dollar got pounded to a 14 year low vs British Sterling Pound and Bonds were thrashed as the 10 yr yield hit 4.81 again.
The XBD (Broker/Dealer), BKX (Banker) & RTH (Retail) have all slipped from highs. But the market still seems to be on solid footing.
The NDX, SOXX & NAZ continue their pullback to under 50 DMA, albeit on lower volume. A break below 1765 NDX and or 1420 SP500 with a marked rise in the VIX could signal more downside.
Support: DJIA 12475, SP500 1420, Nasdaq 2405; NDX 1765; RUT 775
MON, a broadbased downsurge, DJIA -88 on average volume with ugly internals. All DOWN. Bonds up 10 yr 4.76, $ up vs 121.65y & 1.2948E, crude down -1.6% $51.13, gold down $632.80
TUE, commodities led split tape rebound, DJIA +57 on average volume with nice internals. All UP cept NDX & Tech. Bonds down 10yr 4.81, $ up vs 121.66y & down vs 1.3016E, crude up 4.5% $54.94, gold up 2% $646.60
Today, no need to trot out the peak oil shills or Nigerian rebels. U.S. Energy Secretary Samuel Bodman's announcement that the government will boost the size of the nation's emergency oil reserve had crude jumping up to a two week high.
From Jubak: In 2000, the government's liabilities were just $20 trillion or two times the size of the economy. Today they are a staggering $50 trillion, a $30 trillion increase in only 7 years.
On Jan 11, David Walker, comptroller general, testified that by 2030, assuming that discretionary spending grows at the same rate as the economy and the Bush tax cuts are made permanent...
government spending on interest on the national debt, Social Security, Medicare and Medicaid would eat up 100% of government revenues.
Thanks Dubya, maybe the oil companies, big business, christian coalition or church can bail us out? Do ya think?
Xerox beat the number, but revenue woes hurt the stock. B of A & Wachovia posted large profits on merger revenues. Yahoo profits dropped and AMD posted a loss
From Fleck: The risky BBB-minus tranche of the June 2002 ABX.HE (a synthetic version of assets backed by U.S. home loans) just traded at a new low.
Its down more than eight points from early September and the credit default swap has now blown out to 477 basis points.
As a result, sub prime lenders such as New Century Financial, Accredited Home Lenders and NovaStar Financial all seem primed to hit the wall this year.
Gold soaring as the dollar got pounded to a 14 year low vs British Sterling Pound and Bonds were thrashed as the 10 yr yield hit 4.81 again.
The XBD (Broker/Dealer), BKX (Banker) & RTH (Retail) have all slipped from highs. But the market still seems to be on solid footing.
The NDX, SOXX & NAZ continue their pullback to under 50 DMA, albeit on lower volume. A break below 1765 NDX and or 1420 SP500 with a marked rise in the VIX could signal more downside.
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