S&P 500 FINANCIALS INDEX
| Value 195.09 | Change -1.62 | % Change -0.8% |
The Alerian MLP Index was up 2¼ into the 245s, still under its 252 yearly high but getting closer. Their 6 month chart is very impressive as is the case for most charts. The Dow Jones REIT Index slipped a fraction remaining within a couple of its recent high. Junk bond funds were higher, reducing their yield spreads over the 10-year Treasury bond (most premiums are well below 1000 basis points). The yield on the 10-year Treasury bond bounced back to even for the day at 3.34%.
Alerian MLP index --- 6 months
Dow Jones REIT Index --- 6 months
Oil stalled out after having a nice week, it's back below 70 again. Gold however wants to move higher to new peaks. The chart for its ETF is shown below & the bulls are in charge of this market. Inflation fears & the weak dollar are behind is rise, neither factor is expected to weaken soon.
| CLV09.NYM | ..Crude Oil Oct 09 | ..69.31 | .. 2.63 .......(3.7%) |
| GCU09.CMX | ..Gold Sep 09 | ..1,007.20 | .. 11.80 .......(1.2%) |
GLD (ETF) --- 2 years
The federal deficit hit a record $1.38T (that's T as in trillion) in the first 11 months ending Aug 31 of the current fiscal year. The gov is forecasting the deficit for the entire fiscal year will be $1.58T, down from an earlier estimate of $1.84T. China has become the biggest creditor to the US, have to hope they keep buying Treasury debt. They have expressed concerns about big deficits. Hmmm!
The 6 month chart for the Dow is about the best it has ever looked for that period. In its latest streak (5 days) it advanced another 350 (4%). A lousy housing markets, weak dollar, gold hitting new highs & unemployment going from bad to worse have not hurt this market. We're almost ½ way thru terrible Sep. Let's see what next week brings.
Dow Jones Industrials --- 6 months
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