Buzz Bits: Dow, Nasdaq Continue Slide
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Earnings Report - MV News
- Martek Biosciences (MATK) reports 2Q EPS in-line of $0.15 on revs of $76.7 mln vs. $76.27 mln cons.
- Shuffle Master (SHFL) reports 2Q EPS of $0.10 may not be comparable to $0.13 cons on revs of $44.6 mln vs. $43.3 mln cons.
Bell Buzz - Todd Harrison - 3:57 PM
- Will Hoofy be able to turn on his lovelight tomorrow? Google, Apple and the late-day try in the brokers (not to mention the BKX 200-day) support the effort while the nosty breadth, broken S&P levels and BKX 116 imply further supply.
- With tight and defined risk (as shaped by the above mentioned technicals), you can shape a noice risk/reward profile either way. Know this, an uptick in volatility is good news for the disciplined trader.
- Hedgy you say? Fair enough, I'll counter, but the tape is A.D.D. and with the exception of a handful of cores, I've tightened up on the risk bat.
- Snoop Tony Dwyer will swing by the 'Ville tomorrow for an ol' fashioned Sushifest. Minyan Instant Messangers be warned (nobody has ever seen Snoop and the AOL happy face in the same room at the same time).
- With that, I'm gonna jump and juggle as we set MinyanStage '07. I hope ye faithful had a good session and your night slaps it to shame.
Inflation Station - Sally Limantour - 1:35 PM
- Low labor prices from Asia, India and Eastern Europe has lulled many into believing we would have a deflationary environment. Now this process seems to be going in reverse as companies face shortages while operating at full capacity. The WSJ today reports that western workers and their low cost rivals are "winning higher pay, thanks to rising demand." The ironic twist with globalization is that costs are increasing as businesses compete for resources.
- In other news China's wholesale pig prices are up 43% y/y and Governor Zhou said that the recent rise in food prices meant that the PBoC would pay very close attention to inflation. That's comforting.
- Malaysian palm oil surged yesterday to all time highs and drier weather pushed soybeans yesterday to the highest level since July of 2004. Soybean oil (think biodiesel) was at the highest level in 23 years!
- Wheat has rallied these past few weeks and also made a new contract high.
- In the last three months the gold market has absorbed 170 tonnes of gold sales from ECB banks.
- Over the past 12 months copper, lead, nickel, zinc, crude oil, gasoline, gold and platinum have hit record highs for monthly average prices in nominal terms. According to Barclays Capital nickel so far is the only market that has set an all time inflation high at $52,108.
Positions in gold, soybeans, wheat
Critical Support Check - Tom Alexander - 12:41 PM
Today or very soon is the next "unless it is different this time" buying opportunity in the major trading indices.
The indices are getting crushed accompanied by deeply oversold breadth readings. Breadth is near levels that has marked almost every pivot low in the bull trend that been last summer. Note the accompanying charts.
Click to see larger image
Click to see larger image
On the bullish side of the ledger is the fact that, so far, the Russell and Naz are showing a lot of relative strength. Critical support in the indices (if this view is correct) is:
June S&P Mini: 1507.75
S&P 500 SPYDERS: 150.74
S&P Cash: 1505.18
June Dow Mini: 134.49
Dow cash: 13423.90
June Russell: 830.60
Russell 2000 cash: 807.69
June Naz: 1868
Naz Cash: 1857.33
Now this is a top... - Bennet Sedacca - 9:33 AM
Yesterday, I highlighted the break in Canadian Government bonds.
But get a load of the chart below of the last 22 years of action in Japanese bond futures. Now that's a big top building. Note that yields peaked/prices bottomed as the bubble in Japanese equities ended in 1989.
Click to see larger image
That is one ugly chart. Over the next few days, I will be focusing on other countries as well.
It surely seems that the correlation in markets isn't only in equities. It exists across the board.
Same deal with credit spreads IMO. When they blow, it'll be a doozy.
And this guy won't be near it.
FWIW, I still think utes and REIT's and homies are a 'sell strength' story.
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