Abnormal Trading Markets
September 10th 2008 01:17
I still think we have a very troubled market. They just don't normally trade the way this one has been trading.
Yesterday, the DJIA was up almost 300 points, today it gave almost all of it back. For this week it is up 9.77 points and holding above its July 28th low. The DJTA didn't have much of a day yesterday, like the DJIA and today suffered a big loss of 180 points. It is down over 122 for the week and this is the lowest since July 15th. Clearly, the DJTA is acting worse than the DJIA.
Look at the Utilities (DJUA). I have been pointing out the weakness here for some time. Today, it took a big 3.58% loss and the average has not been this low since late 2006. I still think we are looking at another 10% loss from the 445 level.
The NASDAQ looks sick as does the S&P.
The good thing I see, for those of us with a mortgage, is the diving 10 year Treasury! Rates have dropped here from 4.27% to 3.62%. Won't be long and maybe I'll be able to refinance that 5.3/4 30 year mortgage for a 4% 30 year mortgage and take out some money.
This market reminds me of the stock market in 1972. I was on active duty, summer camp, at Ft. Lewis. The market had a huge upside close. I felt something big was up and drove to my office in Lake Oswego from Tacoma, talked to my customers, placed some orders to take advantage of the strength, and drove back that night to Ft. Lewis. That day turned out to be the top of the market.
What happened yesterday to rocket the market? Our socialized system of funding mortgages, FNM and FRE, were finally called failures and nationalized. The market went nuts on the upside. What did it really accomplish? Nothing! We taxpayers just explicitly went billions maybe trillions more in debt, we created $200 billion out of thin air for these two disasters and the USD went up. This is not a healthy development for the economy or the market or the USD or interest rates. Maybe, investors smartened up, today!
Yesterday, the DJIA was up almost 300 points, today it gave almost all of it back. For this week it is up 9.77 points and holding above its July 28th low. The DJTA didn't have much of a day yesterday, like the DJIA and today suffered a big loss of 180 points. It is down over 122 for the week and this is the lowest since July 15th. Clearly, the DJTA is acting worse than the DJIA.
Look at the Utilities (DJUA). I have been pointing out the weakness here for some time. Today, it took a big 3.58% loss and the average has not been this low since late 2006. I still think we are looking at another 10% loss from the 445 level.
The NASDAQ looks sick as does the S&P.
The good thing I see, for those of us with a mortgage, is the diving 10 year Treasury! Rates have dropped here from 4.27% to 3.62%. Won't be long and maybe I'll be able to refinance that 5.3/4 30 year mortgage for a 4% 30 year mortgage and take out some money.
This market reminds me of the stock market in 1972. I was on active duty, summer camp, at Ft. Lewis. The market had a huge upside close. I felt something big was up and drove to my office in Lake Oswego from Tacoma, talked to my customers, placed some orders to take advantage of the strength, and drove back that night to Ft. Lewis. That day turned out to be the top of the market.
What happened yesterday to rocket the market? Our socialized system of funding mortgages, FNM and FRE, were finally called failures and nationalized. The market went nuts on the upside. What did it really accomplish? Nothing! We taxpayers just explicitly went billions maybe trillions more in debt, we created $200 billion out of thin air for these two disasters and the USD went up. This is not a healthy development for the economy or the market or the USD or interest rates. Maybe, investors smartened up, today!
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