Market Soapbox 03/19/08

WEN, pfttt, DJIA -293 on higher volume with ugly internals. All DOWN BIG.

Bonds up BIG 10 yr yield +12bps 3.34, $ up vs 1.5616€ & down vs 98.926y, WTI -4.5% $104.48, gold -6% $945.3 TED spread surged +37bps 2.03%

Yesterday, a 400 pt redux of last Tues 400 pt Fed induced headfake, 3 month went to 0.88, TED spread jumped to 1.66%.

Today, Fannie reserves slashed, means more bad loans, MBS & financials holders dump, oil & gold get punked, 3 month sinks 0.57%; TED spread surges to 2.03.

SP500 open 1330, rise to 1341, tank to close 1298. NDX 1761 gap up open 1765, pop to 1772, tank to close 1715.

Merrill Lynch has taken $24.5 billion in writedowns. ML is now suing XL Capital Assurance over

default protection on $3 billion in CDO obligations that the literally bankrupt bond insurer is seeking to void.

For every safety net the government tries to throw under this circus highwire act, the more they f*ck it up.

We hope keen observers took yesterdays headfake as an opportunity to sell. Nothings changed and this fall will not be pretty.

We still suspect 1200 is coming, and fast. Often wrong, but never in doubt, this is the Nattering Naybob and you're not.

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