June 8, 2007
Stock Du Jour (TLT) & Random Observations
Mixed morning but then the selling kicked in around 11 AM and continued all day, an uglier day than yesterday (which was uglier than the day before). That reversal that I pointed out in the Utilities turned out to be significant after all, foreshadowing this broad market crunch. (The XLU was unusually active again today closing down over 3%.)
Notable New Lows: Starbucks (SBUX), Genentech (DNA), KongZhong (KONG), a ton of financials and several homebuilders (PHM, HOV, SPF).
Notable New Highs: Apple (AAPL) and Crocs (CROX) — both formed “shooting stars” though.
It’s all about the bonds so I’m featuring the 20+ Year Treasury Bond ETF (TLT) as the “stock” du jour.
Taking a long view: Ten-Year Treasury Note Yield Since 1980.
Cat: | Time: 9:00 am (utc+8)
June 8th, 2007 at 2:56 pm
Yield is still in a downtrend for about a quarter of century, but perhaps we are at a turning point. But before that we have a good chance to see a test in direction of the lows again - imo.
June 8th, 2007 at 6:07 pm
[…] My wife bought a pair of Crocs while I was gone and she loves them! Based on her purchase and the shooting star it formed yesterday, I have to say that the top is in for Crocs Inc! […]
June 8th, 2007 at 10:42 pm
Markus I don’t think that’s a possibility any more, seeing a retest that is. Another huge down day today although it is bouncing finally. Interesting to note that the two crash days (today and yesterday) began in overnight trading…those nasty Europeans.
June 9th, 2007 at 4:47 am
Chimpy, for me as a trader there is always a possibilty. And everything depends on your timeframe. By the way, do you really think the last days in the notes and bonds were crash days???
June 12th, 2007 at 8:14 am
Markus, I’ve been trading the 30 yr TBond futures listed at the CBOT for about 8 years now and the size of those bars doesn’t compare to anything I’ve seen in years. I follow the 30 yr yield chart for a long term perspective, and the retest you speak of already happened in ‘05 against the all time low set in ‘03. It’s now starting to move back up.