Friday, June 08, 2007
Freefall?
We got filled on our put play for $0.75. After today we'll have a better idea if this was a good thing or not.
Heavy selling continued Thursday sending stocks down for a third straight session. The Dow fell 198.94 points to close at 13,266.73. The SPX gave up 26.64 points to end on 1,490.72. We are in green and ok for now provided the markets don't fall too much further.
Reasons for the fall:
The 10-year bond rate moved above the psychological 5.0 percent level today,sending stocks sharply lower. The reason for this is that Bonds are now attractive and low risk compared to shares. Bond yields haven't risen to this level since last August and the event convinced traders to continue to sell.
Oil prices rose Thursday again to a price of $66.94 a barrel, a gain of 1.5percent. Weather related problems in the Persian Gulf have pushed prices higher with concerns about supply continuing to keep retail prices at the pumps elevated. Because high energy prices act like a tax on consumers, there therefore remain concerns about spending going forward.
Finally retail sales figures for May were not as good as expected which was the icing on the cake for the Bears. The next two days for us will be key. Let's hope those Bulls are still out there.
Until next time.
Heavy selling continued Thursday sending stocks down for a third straight session. The Dow fell 198.94 points to close at 13,266.73. The SPX gave up 26.64 points to end on 1,490.72. We are in green and ok for now provided the markets don't fall too much further.
Reasons for the fall:
The 10-year bond rate moved above the psychological 5.0 percent level today,sending stocks sharply lower. The reason for this is that Bonds are now attractive and low risk compared to shares. Bond yields haven't risen to this level since last August and the event convinced traders to continue to sell.
Oil prices rose Thursday again to a price of $66.94 a barrel, a gain of 1.5percent. Weather related problems in the Persian Gulf have pushed prices higher with concerns about supply continuing to keep retail prices at the pumps elevated. Because high energy prices act like a tax on consumers, there therefore remain concerns about spending going forward.
Finally retail sales figures for May were not as good as expected which was the icing on the cake for the Bears. The next two days for us will be key. Let's hope those Bulls are still out there.
Until next time.
# posted by Paul @ 5:42 AM 
