Up and down and back to near even on the day, such can be the nature of late August markets. Tens still sit a few large buy orders from making new lows on the year as has been the case for months.
Tomorrow brings us the second round of the recent Fed buybacks , this time targeting issues in the 2016 – 2020 maturity range. Very unscientifically the trend now being carried over from QE 1 is to actually get short going into the buybacks, as these events are surprising nobody.
In other events Greek CDS’s are trading back above 800 basispoints for the first time since may. Just like us the EU stimulus looks to be just a reprieve from massive stress, not a long term solution. And just like us how stimulus measures are used( bailing out banks ) needs to be looked at harder as across the pond the intended results have been illusive at best. Bigger storm rising?
It’s Thursday and time for our weekly reminder of how bad the job market is. The estimates from sell side houses have been missing big for months which is perplexing? The may be starting to get it with projections now running over 480K. It would seem any number that beats any projection would be a hit for the stock market. Facing a great sinker ball pitcher, swing a foot below where you think the pitch will be, it’s your best chance.
Releases include Initial Claims ( exp 470k – 480k) , LEI ( exp. +.1%) , and Philly Fed( exp. 7 – 8). Ten Year Futures support at 125-12, 125-06, and 124-31. Resistance at 125-26.5, 126-01.5 and 126-08. Yield range anticipated between 2.598% and 2.702%.