Market Soapbox 05/01/08
THU, triple digit May Day surge, DJIA +190 on lower volume with pretty internals. All UP BIG cept XOI, XAU.
Bonds down 10yr +1bps 3.76, $ up HUGE vs 1.547€ & vs 104.387y, WTI -1% $112.52, gold -1.5% $850.9, TED spread down BIG -9bps 1.37%.
SP500 open 1385, drop to 1383, rocket to close 1409. NDX 1917, gap up to open 1921, rocket to close 1980.
MON: Range bound: magic line resistance at SP500 1400; NDX 1950. Penetrated with authority.
FRI: I smell consolidation on a Fed pause or 25 bps cut. The pullback was short lived as the DJIA cracked 13K.
WEN: Tomorrow start of month fund flows stem the tide? Maybe, maybe not. They did.
Yesterday, the Fed indicated its recent rate cutting cycle is over. Dollar Index spiking 1.16%, marking its largest single day % gain in more than three years.
We are suspicious as the market has swallowed the media spin hook on a dearth of good news and shows little conviction with low volume.
Should non farms fall short, expect a backlash to this sucker rally. If not, then SP500 1455 and NDX 2020 could be in sight.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Bonds down 10yr +1bps 3.76, $ up HUGE vs 1.547€ & vs 104.387y, WTI -1% $112.52, gold -1.5% $850.9, TED spread down BIG -9bps 1.37%.
SP500 open 1385, drop to 1383, rocket to close 1409. NDX 1917, gap up to open 1921, rocket to close 1980.
MON: Range bound: magic line resistance at SP500 1400; NDX 1950. Penetrated with authority.
FRI: I smell consolidation on a Fed pause or 25 bps cut. The pullback was short lived as the DJIA cracked 13K.
WEN: Tomorrow start of month fund flows stem the tide? Maybe, maybe not. They did.
Yesterday, the Fed indicated its recent rate cutting cycle is over. Dollar Index spiking 1.16%, marking its largest single day % gain in more than three years.
We are suspicious as the market has swallowed the media spin hook on a dearth of good news and shows little conviction with low volume.
Should non farms fall short, expect a backlash to this sucker rally. If not, then SP500 1455 and NDX 2020 could be in sight.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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