Monday, July 11, 2005

MARKET COMMENTS MONDAY JULY 11TH

Though the market rally continues, the volume suggests less than a stamp of approval pace and less than full participation. Institutions may not be along for the ride.

Into month 7 in 2005 and and we have a very mixed market performance with flat as good to down for tech.

The rally on "bad news" is something to watch out for (London terrorist act) but I feel the SPX manipulations prior to open take some OOMPH out of it.

We are in nothing more than a trading range environment.

The rallies come on weakish volume, but new highs are perking up, but are these bond funds and energy stocks mostly? REG $2.31/gal in B'more

Aren't ENERGY STOCKS skewing SPX 500 earnings data? I fell the earnings coming from the SPX sectors are not balanced, do not present a fair and correct economic picture.

Haven't we seen the TOP in earnings momentum? WHAT will drive it in the near future?

Housing prices have rose in a PARABOLIC fashion, now making it tough even on the middle class to afford a home, granted with low rates. If a rise in tax property asessments puts a hurting on home owners, that is a source of worry given punkerish wage growth.....and a rise in cost of the things we need, deflatoin in much else.

LOW LOW Treasury yields are a function IMHO of a weak economic environment, LAST time yields flattened like this we had an economic crash ( just prior to OCT 1987) SOMETHING is wrong, others delight in such a setup, and find it bullish.

SO, markets seem pretty bullish and fun to be long, and even terorist action is nothing to worry about, as a CONTRARIAN, this lack of fear and total complacency I find BEARISH (surprised? LOL)

In IRAQ, support is growing for US TROOPS to leave, and fight the war on terror somwhere else. WILL we abide by the will of the new Gov. like it or not?

Isn't the reason so many are dying and terrorists are being drawn to Iraq ONLY because we are there?

10 YR DOW SEE how MACD AND RSI have been falling since 2004? showing weak momentum? DOW gone nowhere since 1998. I see 2 things, potential multi year reverse Head and SHoulders a break of 2005 highs could lead to charge at all time highs. OR 10,940 is the HEAD and we are putting in right shoulder here! NOT much support BELOW 10K (is why the PPT protect it so!)

SPX/VIX RATIO hits new highs ands hows NO sign of weakening yet. But also take note of awesome triple top here. SHOULD PUT CAP ON RALLY.

VXO (old VIX formula) Hitting LOWS NOT seen since 1995 or before? That was during 20 year bull mkt, yet we make these kinds of moves, and we are WAY below the highs made??!!!

As it the many EXTREMES we are hitting in this "echo bull" which we have now MULTIPLE BUBBLES instead of just one (NAZ) we have CREDIT, HOUSING, BONDS, and DEBT bubbles.

Opinion or fact. I am as cautious as ever, standing my ground, it's a traders market, that's all.

Tune into CNBC for the blather or that ass's show loudmouth obnoxious Cramer, how weak is that?

SHould WE be allowed to HYPE the stocks we own? on TV? woof

Duratek

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