Banks, while off today, are still in the higher end of their trading range for the last 3 months. Below are charts for 3 major banks over the last 3 months.
S&P 500 FINANCIALS INDEX
| Value 163.42 | Change -1.31 | % Change -0.8% |
Value for S5FINL:IND
Bank of America --- 3 months
JPMorgan --- 3 months
Citigroup --- 3 months
Profit taking finally hit the MLPs, down 1 to 240. They benefit from the pursuit of risk for high yields. Meanwhile REITs can't break out of trench war, going nowhere. Junk bonds are finding new friends, as the Barclay High Yield Bond ETF reached another 2009 high, with a yield falling to 13½%. The VIX, volatility index, went just below 24, another 2009 low. Treasuries found buyers, the 10 year Treasury bond rose more than 1 point ($10.55 per $1000 bond) reducing the yield 11 basis points to 3.48%. This yield is at the low end of the trading range for last 2 months.
Alerian MLP Index --- YTD
Dow Jones REIT Index --- YTD
10-Year Treasury Index -- 2 months
Oil has been working its way higher for the last 6 trading days.
| CLQ09.NYM | ..Crude Oil Aug 09 | ..64.72 | .. 0.74......(1.2%) |
California worked out a tentative deal to close the whopping $26B gap in its budget. California would slash spending for schools, public works & welfare programs in the longest recession since the 1930s. The agreement will also siphon money from municipalities, force companies & individuals to pay income taxes sooner, making it more difficult to receive state aid. They expect to vote on the new budget by Thurs. However, cities & counties said they would sue to block any attempt to siphon local gas & redevelopment agencies’ monies. Consider this proposal a "work in progress."
California Budget Deal Reached By Legislators, Schwarzenegger
Investors pursue risk, pushing stocks higher & higher. Thoughts of the recession ending followed by a "V" shape recovery are bringing out buyers. Stocks are in overbought territory, a day of reckoning is approaching.
Dow Jones Industrials --- YTF
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