Market Soapbox 07/30/07
MON, bounce, DJIA +93 on average volume with nice internals. All UP cept MID, SOXX, XAU, RUT.
Bonds down, 10 yr yield +3 bps 4.81, $ down vs 1.3693E & up vs 118.995Y, WTI crude down $76.83, gold up $677.8
Radio Shack #3 US electronic retailer, Q2 sales -15% declining for the 4th straight quarter. Sales in stores open more than 12 months fell 8.9%.
Today, $6.75B in Fed Open Market Reanimation. Friday: "Is this a buying opportunity? For sure, but not yet."
Last Monday DJIA 92 point bounce up, then the largest selloff in 4 years.
Today, DJIA +93, SP500 from 1454 rising above 150 DMA 1465 to rest at 100 DMA 1474. Is it another headfake? Perhaps month end window dressing?
Sowood Capital a Boston-based hedge fund said Friday its bonds lost value as investors fled riskier debt used to fund LBOs. Sowood borrowed to make investments, and owned about $6.4 B in stocks.
Sowood didn't own subprime loans made to borrowers with poor credit histories or mortgage-backed securities.
Today, Citadel Investment Group bought Sowood's corporate bond and loan holdings. Terms were not disclosed.
Bradley Alford of Alpha Capital Mgmt: "1st you had the low end of the food chain in trouble, subprime, and then it moved up, and now it's like dominoes falling.
This is rewriting the way you analyze risk every day." Often wrong, but never in doubt, this is the Nattering Naybob and your not!
Bonds down, 10 yr yield +3 bps 4.81, $ down vs 1.3693E & up vs 118.995Y, WTI crude down $76.83, gold up $677.8
Radio Shack #3 US electronic retailer, Q2 sales -15% declining for the 4th straight quarter. Sales in stores open more than 12 months fell 8.9%.
Today, $6.75B in Fed Open Market Reanimation. Friday: "Is this a buying opportunity? For sure, but not yet."
Last Monday DJIA 92 point bounce up, then the largest selloff in 4 years.
Today, DJIA +93, SP500 from 1454 rising above 150 DMA 1465 to rest at 100 DMA 1474. Is it another headfake? Perhaps month end window dressing?
Sowood Capital a Boston-based hedge fund said Friday its bonds lost value as investors fled riskier debt used to fund LBOs. Sowood borrowed to make investments, and owned about $6.4 B in stocks.
Sowood didn't own subprime loans made to borrowers with poor credit histories or mortgage-backed securities.
Today, Citadel Investment Group bought Sowood's corporate bond and loan holdings. Terms were not disclosed.
Bradley Alford of Alpha Capital Mgmt: "1st you had the low end of the food chain in trouble, subprime, and then it moved up, and now it's like dominoes falling.
This is rewriting the way you analyze risk every day." Often wrong, but never in doubt, this is the Nattering Naybob and your not!
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