Market Soapbox 08/27/07
MON, downdraft, DJIA -57 on thin volume with lousy internals. All DOWN.
Short term bonds up BIG, 10 yr yield -4 bps 4.58, $ up vs 1.3648E & down vs 116.112Y, WTI crude up 1.3% $71.97, gold down $676.2
SP500 open 1479, bleeding into close down 11 to 1468. 1455 support below. NDX at 1950,1965 resistance above.
Last week: "existing home sales awaits, bad numbers could mean a downdraft till Labor Day." At least for today...
Existing home sales sent the market down, homebuilders and financials suffered, utilities punked -3.2%, VIX +7%.
Yield curve inversion: six month note 4.61 now above 10 year.
Repeat the mantra... no spillover... household investment in new homes and repairs: 1991 recession -10%; 1980 housing recession -17%.
Q405, peaking at an annual rate of $711.8 B, Q107: $549.3 billion for a decline of 23%.
Chinese Trim... In May, China invested $3 billion in the world's largest private-equity fund Blackstone. Since going public in June, Blackstone shares are down 28%.
What were they thinking? We've examined Countrywides REO holdings, grossly overvalued, large loans in horrible areas.
Someone was smokin crack when they made these loans. After backing away from Countrywide earlier this year, B of A takes non voting stock.
After geting $2 Billion bailout from B of A, Countrywide CEO Mozilo talks recession. All very curious indeed.
Remember... Last week: "August New & Existing Home Sales will yield a false positive for housing recovery.
Anyone locked in before Jumbo money went to 8% early Aug, panicked and pulled the trigger. Sept post 8% numbers will be a disaster."
The Nattering One muses... We sense another market inflection point coming Sept 4-5th. Will we downdraft till then, or rise?
Often wrong, but never in doubt, this is the Nattering Naybob and you're not!
Short term bonds up BIG, 10 yr yield -4 bps 4.58, $ up vs 1.3648E & down vs 116.112Y, WTI crude up 1.3% $71.97, gold down $676.2
SP500 open 1479, bleeding into close down 11 to 1468. 1455 support below. NDX at 1950,1965 resistance above.
Last week: "existing home sales awaits, bad numbers could mean a downdraft till Labor Day." At least for today...
Existing home sales sent the market down, homebuilders and financials suffered, utilities punked -3.2%, VIX +7%.
Yield curve inversion: six month note 4.61 now above 10 year.
Repeat the mantra... no spillover... household investment in new homes and repairs: 1991 recession -10%; 1980 housing recession -17%.
Q405, peaking at an annual rate of $711.8 B, Q107: $549.3 billion for a decline of 23%.
Chinese Trim... In May, China invested $3 billion in the world's largest private-equity fund Blackstone. Since going public in June, Blackstone shares are down 28%.
What were they thinking? We've examined Countrywides REO holdings, grossly overvalued, large loans in horrible areas.
Someone was smokin crack when they made these loans. After backing away from Countrywide earlier this year, B of A takes non voting stock.
After geting $2 Billion bailout from B of A, Countrywide CEO Mozilo talks recession. All very curious indeed.
Remember... Last week: "August New & Existing Home Sales will yield a false positive for housing recovery.
Anyone locked in before Jumbo money went to 8% early Aug, panicked and pulled the trigger. Sept post 8% numbers will be a disaster."
The Nattering One muses... We sense another market inflection point coming Sept 4-5th. Will we downdraft till then, or rise?
Often wrong, but never in doubt, this is the Nattering Naybob and you're not!
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