Market Soapbox 03/28/07
WEN, triple digit followthrough, DJIA -102 on below average volume with fugly internals. All DOWN.
Bonds down 10yr yield +1 bps 4.62, $ down BIG vs 116.99y & up vs 1.3313E, WTI crude up 1.8% $64.08, gold up $672.90
The hook in mouth media tried to blame it on Bernanke and Iran... when the real culprits were durable goods and the yen carry trade unwinding...
Durable goods showed the economy skidding off the tracks as nondefense capital goods orders, ex-transportation - a proxy for business investment - declining 1.2% after a 7.4% decline in January.
Oil jumping BIG to the Beach Boys Barbra Ann "bomb, bomb, Iran"... the yen rallied BIG as more assets got dumped to pay off those carry trade loans... and equities suffered as a result.
OEX, NDX, NAZ, AMEX, XAU, DJTA, RUT and DJIA all caught support at 25 DMA after taking out 75 & 50 DMA. DJCOMP resting on 25 & 75 after taking out 50 DMA. MID all alone above all support levels.
SP500 fell from 1428 to 1418, slicing through 50 & 75 DMA, support is 15 & 25DMA at 1410, a close below this level with authority probably signals that we are headed for 1395, 1375, 1350 & 1325.
Iraq, $64 oil, sub prime, housing, carry trade unwind, economy. This market is punch drunk worse than Rocky Balboa, all it needs is just one more good left cross...
Bonds down 10yr yield +1 bps 4.62, $ down BIG vs 116.99y & up vs 1.3313E, WTI crude up 1.8% $64.08, gold up $672.90
The hook in mouth media tried to blame it on Bernanke and Iran... when the real culprits were durable goods and the yen carry trade unwinding...
Durable goods showed the economy skidding off the tracks as nondefense capital goods orders, ex-transportation - a proxy for business investment - declining 1.2% after a 7.4% decline in January.
Oil jumping BIG to the Beach Boys Barbra Ann "bomb, bomb, Iran"... the yen rallied BIG as more assets got dumped to pay off those carry trade loans... and equities suffered as a result.
OEX, NDX, NAZ, AMEX, XAU, DJTA, RUT and DJIA all caught support at 25 DMA after taking out 75 & 50 DMA. DJCOMP resting on 25 & 75 after taking out 50 DMA. MID all alone above all support levels.
SP500 fell from 1428 to 1418, slicing through 50 & 75 DMA, support is 15 & 25DMA at 1410, a close below this level with authority probably signals that we are headed for 1395, 1375, 1350 & 1325.
Iraq, $64 oil, sub prime, housing, carry trade unwind, economy. This market is punch drunk worse than Rocky Balboa, all it needs is just one more good left cross...
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