Market Soapbox & Observations 03/26/07
MON, down & up, DJIA -12 on below average volume with midlin internals. All UP cept DJTA, MID, RUT, SOXX.
Bonds up 10 yr yield -1 bps 4.60, $ down vs 1.333E & up vs 118.141Y, WTI crude up 1% $62.91, gold up 1% $663.90.
Friday, DJUA at an all time high... today, crude oil at a high for 2007... then a real laugher, "unexpected" bad news in the housing market...
Homebuilders, financials and transports got sacked, DJIA down 100, then a rebound as investors continue to ignore the handwriting on the wall.
Subprime, no problem, just a blip, right??? According to Christopher Cagan, director of research for First American CoreLogic, a mortgage research firm in Sacramento:
13% of the owners who face a mortgage rate reset this year have less than 5% equity in their home, and therefore will not be able to refinance unless they have other assets...
If prices fall only 5%, the % with no equity would grow to 23%, And if prices fall 10%, it would jump to 35%...
Is the economic downturn here yet?? Just look at the price of lumber... Sawmills usually enter recession five to six months ahead of the rest of the economy.
Prices for green and finished lumber are falling at a faster rate than at any time since 1974. Wake up and smell the coffee, before its too late...
A drop from 1438 to 1423, then a bounce right back. Last week, NDX touched the bottom of the 02/27 gap down at 1808.
Today falling to 1774 and bouncing back to 1802.Interesting to say the least... If we are headed up the SP500 needs to break 1435-1440 with authority.
If we are headed down, 1395 needs to be violated with authority. My best guess...
Sideways & upward action till Friday's construction spending shows the housing market is STILL headed downhill and taking the rest of this soft service based economy with it.
Bonds up 10 yr yield -1 bps 4.60, $ down vs 1.333E & up vs 118.141Y, WTI crude up 1% $62.91, gold up 1% $663.90.
Friday, DJUA at an all time high... today, crude oil at a high for 2007... then a real laugher, "unexpected" bad news in the housing market...
Homebuilders, financials and transports got sacked, DJIA down 100, then a rebound as investors continue to ignore the handwriting on the wall.
Subprime, no problem, just a blip, right??? According to Christopher Cagan, director of research for First American CoreLogic, a mortgage research firm in Sacramento:
13% of the owners who face a mortgage rate reset this year have less than 5% equity in their home, and therefore will not be able to refinance unless they have other assets...
If prices fall only 5%, the % with no equity would grow to 23%, And if prices fall 10%, it would jump to 35%...
Is the economic downturn here yet?? Just look at the price of lumber... Sawmills usually enter recession five to six months ahead of the rest of the economy.
Prices for green and finished lumber are falling at a faster rate than at any time since 1974. Wake up and smell the coffee, before its too late...
A drop from 1438 to 1423, then a bounce right back. Last week, NDX touched the bottom of the 02/27 gap down at 1808.
Today falling to 1774 and bouncing back to 1802.Interesting to say the least... If we are headed up the SP500 needs to break 1435-1440 with authority.
If we are headed down, 1395 needs to be violated with authority. My best guess...
Sideways & upward action till Friday's construction spending shows the housing market is STILL headed downhill and taking the rest of this soft service based economy with it.
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