Market Soapbox 12/17/08

WEN, triple down, DJIA -100 on average volume with ugly internals. All DOWN cept DJTA, MID, XOI, RUT.

Bonds up 10 yr -8bps 2.19, $ down vs E1.4422 & vs 87.785y, WTI -9% $40.11, gold +1% $864.9, TED spread -25bps 1.57%.; 3 mo Libor -27bps 1.58%

SP500 913, gap down 908, dip 895, rise 918, close 904. NDX 1244, gap down 1225, dip 1211, rise 1242, close 1225.

FRI: Senate rejects automotive bailout; Fed may throw TARP over automakers. Fed purchases another $3 billion of debt from Freddie; Fannie & FHLB.

MON: NY Empire State Index Dec -25.8 vs -25.4; NAHB/WF Housing Index 9 vs 9; Industrial Production Nov -0.8% vs +1.3%; assembly rates lowest level in 18 yrs.

TUE: Fed funds cut 75 bps to 0.25%; Goldman Sachs principal investments net loss Q4 $3.6 billion. Record declines Building Permits -15.6%; Housing Starts -19%.

Today, Morgan Stanley -$2.2 billion Q4 loss; Regulators increase oversight of Citigroup due to financial status concerns.

Libor & Ted Spread shrinking; SP500 over 50 DMA; 1st time since 09/03; major test at 1000; failure plunges market below 11 yr low at 740.

Often wrong, but never in doubt, this is the Nattering Naybob and you're not.

Comments