4 replies to this topic

[BearItch]

With the SPX futures 9 points below fair value, Dow down 40 points below fair value and the NDX is down only 6 points belwo fair value. Dow and especially the NDX are not as down as much as one might think given the SPX situation. Morning is still young, but that is odd. Whatz up with dat?

[OEXCHAOS]

My read is that folks did what I was planning on doing. They got up, saw that the S&P had been down much more and knew that it would at least test there in a weak market, so they shorted it. Others woke up (or were already watching since they'd bought overnight for the "gap") and saw it down and falling and dumped. Hard to trade obvious patterns these days. Hirsch (stock traders almanac) is all Beared up, this morning I see. I advised folks that my Seasonal Model, to went unambiguously negative as well. That ought to bring a down-up sequence. Mark

[Swiss Trader]

With the SPX futures 9 points below fair value, Dow down 40 points below fair value and the NDX is down only 6 points belwo fair value. Dow and especially the NDX are not as down as much as one might think given the SPX situation. Morning is still young, but that is odd. Whatz up with dat?

U.S. futures lower as bond yields approach 5.25%

By Steve Goldstein, MarketWatch
Last Update: 6:13 AM ET Jun 8, 2007


LONDON (MarketWatch) -- U.S. stock futures dropped on Friday as bond yields on 10-year Treasury notes approached 5.25% -- only a day after breaking 5% for the first time since August.
September-dated S&P 500 futures dropped 5.4 points at 1,498.30 and Nasdaq 100 futures fell 5.25 points at 1,902.00. Dow industrial futures fell 33 points.
U.S. stocks dropped on Thursday, taking losses on the Dow industrials to nearly 400 points over three sessions, on worries about rising bond yields, global interest rates and rising oil futures. The yield on the 10-year Treasury surged well past 5%, and in electronic trading on Friday, advanced further to 5.22%.
The higher bond yields rise, the less attractive by comparison stocks are.
America's burgeoning trade deficit will be back in focus on Friday with the release of April trade data, which is expected to show a $63.9 billion deficit.
The dollar rose sharply against the euro, with one euro fetching $1.3338, and rose 0.3% at 121.39 yen.
Crude oil futures dropped 70 cents to $66.23 a barrel. Gold futures dropped $5.80 to $659.40 an ounce.
The Nikkei 225 dropped 1.5% in Tokyo, and the FTSE 100 slipped 0.5% in London

[BearItch]

My read is that folks did what I was planning on doing. They got up, saw that the S&P had been down much more and knew that it would at least test there in a weak market, so they shorted it.

Others woke up (or were already watching since they'd bought overnight for the "gap") and saw it down and falling and dumped.

Hard to trade obvious patterns these days.

Hirsch (stock traders almanac) is all Beared up, this morning I see. I advised folks that my Seasonal Model, to went unambiguously negative as well. That ought to bring a down-up sequence.

Mark

Keeep in mind though that yesterday was a 90% down day on the NYSE.

NDX futures just caught up on the downside and SPX futures then popped up and NDX futures followed. Erratic and volatile this morning....

[OEXCHAOS]

Yeah. All over the map. The 24-hour chart on the ES is wild. Mark