Market Soapbox 01/22/08
MON, Martin Luther King Jr. Day, Market Closed
TUE, Mr Toad's Wild Ride, DJIA -128 on large volume with horrific internals. All DOWN cept XAU.
Bonds up BIG 10 yr yield -16bps 3.47, $ up vs 1.4618E & down vs 106.59y, WTI down $89.85, gold up 1% $890.6. TED spread up BIG +34bps 1.39%.
FRI: "Fitch's downgrade of #2 guarantor Ambac could trigger a dislocation in the municipal bond market and another chain reaction of write-downs in the financial sector... could be the straw that breaks the camels back."
FRI: "NDX (500 DMA) 1800 & SP500 (900 DMA) 1300 await." On the money, snap, crackle, pop!
SP500 gap down 1324 to 1312, plunge to 1274, bounce to 1322, close 1310. NDX gap down 1844 to 1740, rise to 1820, close 1795.
Down 460 at open, DJIA rallied 330, support DJIA 12K, SP500 1300, NDX 1800. A major dead cat bounce? Looked like alot of short covering...
as the laggards with further downside potential, suddenly became leaders (financials, Reits, regional banks & retail).
Do not be fooled, buyers played chicken till the last 20 minutes then let go.
Bill Gross, PIMCO: "It's a sad testament to think the Fed has to cut interest rates eight days in front of a meeting to salvage the equity markets.
The U.S. economy is in a rather sad state of affairs in that it depends on housing and stock prices to keep going."
Its a far sadder testament to the financial and economic trainwreck we are in. All the cuts, fund auctions and stimulus, yet, the TED Spread has jumped 57 points in less than 3 days.
Ironic Statement of the Century... Shrub Jr. after announcing the "Financial Literacy" panel:
"Sometimes people just don't know what their lookin at or readin." No kidding...
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
TUE, Mr Toad's Wild Ride, DJIA -128 on large volume with horrific internals. All DOWN cept XAU.
Bonds up BIG 10 yr yield -16bps 3.47, $ up vs 1.4618E & down vs 106.59y, WTI down $89.85, gold up 1% $890.6. TED spread up BIG +34bps 1.39%.
FRI: "Fitch's downgrade of #2 guarantor Ambac could trigger a dislocation in the municipal bond market and another chain reaction of write-downs in the financial sector... could be the straw that breaks the camels back."
FRI: "NDX (500 DMA) 1800 & SP500 (900 DMA) 1300 await." On the money, snap, crackle, pop!
SP500 gap down 1324 to 1312, plunge to 1274, bounce to 1322, close 1310. NDX gap down 1844 to 1740, rise to 1820, close 1795.
Down 460 at open, DJIA rallied 330, support DJIA 12K, SP500 1300, NDX 1800. A major dead cat bounce? Looked like alot of short covering...
as the laggards with further downside potential, suddenly became leaders (financials, Reits, regional banks & retail).
Do not be fooled, buyers played chicken till the last 20 minutes then let go.
Bill Gross, PIMCO: "It's a sad testament to think the Fed has to cut interest rates eight days in front of a meeting to salvage the equity markets.
The U.S. economy is in a rather sad state of affairs in that it depends on housing and stock prices to keep going."
Its a far sadder testament to the financial and economic trainwreck we are in. All the cuts, fund auctions and stimulus, yet, the TED Spread has jumped 57 points in less than 3 days.
Ironic Statement of the Century... Shrub Jr. after announcing the "Financial Literacy" panel:
"Sometimes people just don't know what their lookin at or readin." No kidding...
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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