The Alerian MLP Index is up 5 (3% is modest all considered), the Dow Jones REIT Index is up a more impressive 7 & Lehman High Yield Bond ETF (JNK) is up only pennies. VIX pulled back only 1, it should have down more given the size of the rally.
The proposed stimulus package brought back buyers to depressed oil (but still down 100 from the peak set a few months ago):
| CLF09.NYM | ..Crude Oil Jan 09 | ...43.87 | .. 3.06.......(7.5%) |
Over half the mortgages modified to help borrowers are back in receivership as the mortgage & housing crisis shows no sign of letting up.
•Majority of Modified U.S. Mortgages Fail Within Six Months, Regulator Says
Citadel, a major hedge fund manager, is pulling back sharply. I know it's hard to feel sorry for hedge fund guys, but this does not sound good for managers of huge amounts of money in the stock market. Hedge funds are selling into these recent rallies.
•Citadel to Shut Tokyo Office, Cut Asian Investments, Eliminate 50% of Jobs
Any stimulus package will take time to work its way into the economy. Just passing a package won't happen until Feb at the earliest. Spending & hiring will take additional time. Last year reminded us the tax refunds take 3 months (at best) to work their way into the system. Meanwhile, the Tribune company, an enormous media player, is on the brink of bankruptcy. They were hurt by declining readers & a big reduction in advertising. Let's see if the rally holds in the PM.
1 comment:
Last week was a rally. However, stock market opened lower today, headed lower. We have a minor correction today.
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