Market Soapbox 09/19/07
WEN, followthrough, DJIA +76 on average volume with nice internals. All UP cept DJTA.
Bonds down 10 yr yield +5 bps 4.52, $ up vs 1.3958E & down vs 116.05Y, WTI crude down $81.93, gold down $729.5
SP500, open 1519, rise to 1538, dip to 1523, rise to close 1529. NDX open 2035, gap up to 2047, dip to 2032, then rise into close 2041.
Transport down on all time high oil, RUT small cap & DJUA utilities +1.3% saw benefit from rate cut, NDX tech & SOXX semis curiously weak.
Nikkei 225 up 3%, most in 7 months, BOJ 10 year bonds fell the most in 8 months. BOJ holding rate at 0.5%, one dissenting vote & central bank governor Fukui "jawboning" for a rate hike.
Fukui cited the yen carry trade, where investors borrow money in Japan to purchase higher yielding assets outside the country, as an example of how resources can be misallocated as a result of cheap credit.
US 10 year bond retracing from Sept 10 high. 4.32% to 4.52%. The 3 month London Inter Bank Offered Rate, an indicator of bank's willingness to lend dollars, fell to 5.59% from a 7 year high of 5.73% on Sept. 7.
If they have not already done so in anticipation, we smell a possible Yen carry trade unwind coming from the 50 bps cut & Fukui's jawboning. It could hit late Fri or Mon or when the NDX hits 2082 area.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not!
Bonds down 10 yr yield +5 bps 4.52, $ up vs 1.3958E & down vs 116.05Y, WTI crude down $81.93, gold down $729.5
SP500, open 1519, rise to 1538, dip to 1523, rise to close 1529. NDX open 2035, gap up to 2047, dip to 2032, then rise into close 2041.
Transport down on all time high oil, RUT small cap & DJUA utilities +1.3% saw benefit from rate cut, NDX tech & SOXX semis curiously weak.
Nikkei 225 up 3%, most in 7 months, BOJ 10 year bonds fell the most in 8 months. BOJ holding rate at 0.5%, one dissenting vote & central bank governor Fukui "jawboning" for a rate hike.
Fukui cited the yen carry trade, where investors borrow money in Japan to purchase higher yielding assets outside the country, as an example of how resources can be misallocated as a result of cheap credit.
US 10 year bond retracing from Sept 10 high. 4.32% to 4.52%. The 3 month London Inter Bank Offered Rate, an indicator of bank's willingness to lend dollars, fell to 5.59% from a 7 year high of 5.73% on Sept. 7.
If they have not already done so in anticipation, we smell a possible Yen carry trade unwind coming from the 50 bps cut & Fukui's jawboning. It could hit late Fri or Mon or when the NDX hits 2082 area.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not!
Comments