Market Soapbox 10/17/08
MON, followthrough DJIA -224 on average volume with dismal internals. All DOWN.
Bonds up 10 yr -8bps 3.65%. $ down vs E1.2643 & vs 96.395y, WTI down $55.19, gold down $737.6; TED Spread +1bps 2.12%; 3 mo Libor flat 2.24
SP500 869, rise 882, dive to close 850. NDX 1176, gap down 1157 rise 1187, dive to close 1150.
FRI: Business Sales Sep -2%; Retail Sales Oct -1.3%; ex-auto -2.2%; the longest string of declines since records began in 1992.
Today, Sillybank cutting 52K jobs or 14%; Lowes warns; Target suspends share buybacks and cuts capital spending by $1 billion.
Let the good times roll... Japan joined the Eurozone in an official recession. US still in denial.
Industrial Production Oct +1.3% vs -3.7% on a resumption of output after hurricanes. NY Empire State Index Nov -25.4 vs -24.6.
Starbucks credit rating on $550 million of senior unsecured notes was downgraded to Baa2 from Baa1 at Moody's.
Shhhh... The 30 biggest U.S. banks hold about $1 of capital for every $11 of risk weighted assets...
a figure that encompasses assets both on and OFF the balance sheet.
On balance sheet FASB rules regarding trusts used to package credit card loans into securities; delayed until 2010.
Hidden... Citigroup, JPMorgan & BofA alone have about $300 billion of these combined; OFF sheet.
Time to sell... CEOs, directors and senior officers at NYSE companies snapped up $1.37 billion worth of equities...
in October, as the SP500 Index fell 17%, the most since 1987.
Hubris and imagination... Insiders bought $57 worth of shares for every $100 sold in October, from a low of $21 bought in June.
During the last dead cat bounce in March, the executives bought $62 per $100 sold.
The SP500 gained 7.9% from the end of March to May 19th...
before giving up the entire advance the next month; and then dropped 44% through Nov. 14th.
Don't drink the MBA clown kool aid... If your not out yet, you should be, as we are just starting to scratch the surface of this shit storm.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Bonds up 10 yr -8bps 3.65%. $ down vs E1.2643 & vs 96.395y, WTI down $55.19, gold down $737.6; TED Spread +1bps 2.12%; 3 mo Libor flat 2.24
SP500 869, rise 882, dive to close 850. NDX 1176, gap down 1157 rise 1187, dive to close 1150.
FRI: Business Sales Sep -2%; Retail Sales Oct -1.3%; ex-auto -2.2%; the longest string of declines since records began in 1992.
Today, Sillybank cutting 52K jobs or 14%; Lowes warns; Target suspends share buybacks and cuts capital spending by $1 billion.
Let the good times roll... Japan joined the Eurozone in an official recession. US still in denial.
Industrial Production Oct +1.3% vs -3.7% on a resumption of output after hurricanes. NY Empire State Index Nov -25.4 vs -24.6.
Starbucks credit rating on $550 million of senior unsecured notes was downgraded to Baa2 from Baa1 at Moody's.
Shhhh... The 30 biggest U.S. banks hold about $1 of capital for every $11 of risk weighted assets...
a figure that encompasses assets both on and OFF the balance sheet.
On balance sheet FASB rules regarding trusts used to package credit card loans into securities; delayed until 2010.
Hidden... Citigroup, JPMorgan & BofA alone have about $300 billion of these combined; OFF sheet.
Time to sell... CEOs, directors and senior officers at NYSE companies snapped up $1.37 billion worth of equities...
in October, as the SP500 Index fell 17%, the most since 1987.
Hubris and imagination... Insiders bought $57 worth of shares for every $100 sold in October, from a low of $21 bought in June.
During the last dead cat bounce in March, the executives bought $62 per $100 sold.
The SP500 gained 7.9% from the end of March to May 19th...
before giving up the entire advance the next month; and then dropped 44% through Nov. 14th.
Don't drink the MBA clown kool aid... If your not out yet, you should be, as we are just starting to scratch the surface of this shit storm.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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