Tuesday, April 22, 2008
ES Daily april 22 after hours
Looks like we have a channel.
Watch out for Rice prices
Watch out for Wheat prices
Oil to break $120
Banks and Financials need a higher market to keep the creditors at bay and to keep the expected 250,000 homes that haven't recieved their Notice of Defaults off their books.
Although we are seeing a slight uptick in home purchases compared to last month, the numbers of foreclosures are up 57% over last year and expecting bigger numbers in the months ahead.
Dollar also looks like it might get a bit of a break as the Bank of England is stepping in to help out with the Financial companies that have big losses in subprime. Holland, Belgium and England are also entering their first rounds of Foreclosures as overpriced properties have hit their highs and starting to plummet.
China's economy is the strongest it has ever been expecting the largest GDP % move ever......
Friday, April 18, 2008
Thursday, April 17, 2008
Google lights the fire SP 500 to 1410
Google lights a fire under S&P 500. Next area of resistance is 1410. Bringing it up so the investors get in.
This is the dynamic area where Market Makers and Money Makers are taking advantage of the short term direction pushing the market so Investors will get back in. How long will this last, I don't know, but once the sentiment changes a little about stocks, the Market Makers will strip the profit out.
I am looking for an increase in volume to add to this volatitlity.
Big gap up on the open tomorrow.
Trade what you see.
This is the dynamic area where Market Makers and Money Makers are taking advantage of the short term direction pushing the market so Investors will get back in. How long will this last, I don't know, but once the sentiment changes a little about stocks, the Market Makers will strip the profit out.
I am looking for an increase in volume to add to this volatitlity.
Big gap up on the open tomorrow.
Trade what you see.
Fear is resceding is the bull back?
U.S. Treasury notes fell, pushing yields to the highest since February, as traders speculated the Federal Reserve will stop cutting interest rates after this month.
Fear is receding. People are looking at where fed funds is going to be, maybe settling in at 2 percent, and saying do we really want to own two-year notes at 1.5 percent if things are settling, if there's less risk to the system. Traders added to bets the Fed will cut its target rate by just a quarter-point to 2 percent on April 30. Futures on the Chicago Board of Trade show a 76 percent chance of that size reduction, up from 58 percent a week ago. The rest of the bets are on a half-point cut. Traders now see a better-than-even chance the rate will stay at 2 percent through next quarter.
Swap spreads widened amid the increase in Libor rates, which typically signals a decline in risk appetite. The spread between Treasury yields and the rate on a two-year interest-rate swap, used to hedge against interest-rate swings, reached as wide as 101.88 basis points, from 96.25 yesterday. Rising swap rates can lead investors who are receiving fixed payments to sell Treasuries to hedge the risk that rates will rise.
Fear is receding. People are looking at where fed funds is going to be, maybe settling in at 2 percent, and saying do we really want to own two-year notes at 1.5 percent if things are settling, if there's less risk to the system. Traders added to bets the Fed will cut its target rate by just a quarter-point to 2 percent on April 30. Futures on the Chicago Board of Trade show a 76 percent chance of that size reduction, up from 58 percent a week ago. The rest of the bets are on a half-point cut. Traders now see a better-than-even chance the rate will stay at 2 percent through next quarter.
Swap spreads widened amid the increase in Libor rates, which typically signals a decline in risk appetite. The spread between Treasury yields and the rate on a two-year interest-rate swap, used to hedge against interest-rate swings, reached as wide as 101.88 basis points, from 96.25 yesterday. Rising swap rates can lead investors who are receiving fixed payments to sell Treasuries to hedge the risk that rates will rise.
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