Market Soapbox Week Ending 09/07/07

MON, Labor Day Markets Closed

TUE, followthrough, DJIA +91 on below average volume with nice internals. All UP. Bonds down, 10 yr yield +2 bps 4.55, $ up vs 1.3606E & vs 116.29Y, WTI crude up 1.4% $75.08, gold up 1.5% $692.5.

WEN, down, DJIA -143 on lower volume with ugly internals. All DOWN. Bonds up BIG 10 yr yield -8 bps 4.47, $ down vs 1.3649E & down BIG vs 115.255Y, WTI crude up 1% $75.92, gold down $690.7

THU, tenative, DJIA +58 on low volume with OK internals. All UP cept OEX, RUT. Bonds down 10 yr yield +3bps 4.50, $ down vs 1.3686E & up vs 115.355Y, WTI crude up $76.3, gold up 2% $704.6

FRI, triple digit slapdown DJIA -250 on low volume with horrid internals. All DOWN BIG. Bonds up BIG 10 yr yield -13bps 4.37, $ down BIG vs 113.425y & down vs 1.3767E, gold up $709.7 WTI crude up $76.7

This week, DJIA -244, since 09/19/05 DJIA +2503. CRB commodities up 308.76 to 312.32

XAU up 140.77 to 151.61 & gold up $681.90 to 709.7 XOI up 1364.1 to 1378.92 & WTI crude up $74.04 to 76.7

Volatility VIX up 22.58 to 26.61. Dollar index down 80.80 to 79.96 $ down vs Yen 115.945 to 113.425 & vs Euro 1.363 to 1.3767

This week bonds up BIG. 30yr -14bps; 10yr -16bps, 5yr -21bps, 2yr -23bps, 6mo -3bps. 30 yr @ 4.69%; 10 yr @ 4.37; 5 yr @ 4.03; 2yr @ 3.90; 6 mo @ 4.19.

Resistance: DJIA 13400; SP500 1495; NAZ 2595; NDX 2000
Support: DJIA 13085; SP500 1455; NAZ 2535; NDX 1940

Adding to the Dead Pool... National City Corp., Ohio's biggest bank, said yesterday it would reduce staff by 1,300.

IndyMac Bancorp Inc., the second- biggest U.S. mortgage company, plans to cut 10% of its workforce and lower its dividend. IndyMac may post a loss for the 1st time in 8 years.

SP500 open 1478, falling 29 to 1449, bounce to close at 200 DMA 1453. NDX 1998 gap down 26 to 1972 plunging 21 to 1951, bouncing 7 at close 1958.

Yesterday: "Barring someone stepping on a landmine... The downside risk far outweighs the upside at this point." Negative non farms was the landmine.

The Yen rebounded on carry trade unwind, the dollar index below 80, gold over $700, crude heading for $80.

10 year note auction, options unwind & 9/11 anniversary await. Broadbased whuppin with 10 to 1 declining volume.

We sense a ricochet coming Monday, plus hopes for a Sept Fed Cut could start a small rally.

When the Fed refuses on the 19th, just before options expiration, pffffttttt. Often wrong, but never in doubt, this is the Nattering Naybob and you're not!

Comments