Noon update:
No real progress as ES finds continued resistance at 1393.
I am trying very hard to look at the bright side. Let me see, oil has "fallen" to 125, great the consumer is going to be ok. Semi-conductors orders are flat, heck, it's better than down. The rebate checks are coming and will be spent at BestBuy. Consumer sentiment at a 26 year low, that means we have hit bottom etc... I don't want to be a cynic, it's no fun, but there is nothing, other than short covering rallies, that justifies further gains at this point.
As mentioned over the weekend, bonds have limited downside because the Feds aren't going to do anything for some time. So bagging 2% above the fed fund rate on the ten year is attracting buyers. The only piece of news that can truly alter this equation would be a jobs report that is positive. So for now, trade the range, don't expect breakouts/breakdowns until then (Thursday and Friday). We do have oil inventories tomorrow, the one wild card.
No real progress as ES finds continued resistance at 1393.
I am trying very hard to look at the bright side. Let me see, oil has "fallen" to 125, great the consumer is going to be ok. Semi-conductors orders are flat, heck, it's better than down. The rebate checks are coming and will be spent at BestBuy. Consumer sentiment at a 26 year low, that means we have hit bottom etc... I don't want to be a cynic, it's no fun, but there is nothing, other than short covering rallies, that justifies further gains at this point.
As mentioned over the weekend, bonds have limited downside because the Feds aren't going to do anything for some time. So bagging 2% above the fed fund rate on the ten year is attracting buyers. The only piece of news that can truly alter this equation would be a jobs report that is positive. So for now, trade the range, don't expect breakouts/breakdowns until then (Thursday and Friday). We do have oil inventories tomorrow, the one wild card.
This entry was posted
on Tuesday, June 03, 2008 at 6/03/2008 12:06:00 PM.
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