Friday, August 20, 2010

Markets continue sliding on fears about a recovery

Stocks began the day under water & continued to sell off. Dow is off 87, decliners over advancers almost 4-1 while NAZ dropped 11. Bank stocks fell taking the Financial Index closer to the yearly lows in the 182s.


Value 185.68 One-Year Chart for S&P 500 FINANCIALS INDEX (S5FINL:IND)
Change -0.58 (-0.3%)

The Alerian MLP Index dropped almost 3 to the 219s & down 16 from its recent highs. The REIT index fell 1 to the 198s. Junk bond funds were flat to lower. But the VIX was down only a smidgen in the 26s. The € fell more than a penny, going below $1.27, on weak US economic data.

Alerian MLP Index --- 2 weeks

Dow Jones REIT Index --- 2 weeks

VIX --- 2 weeks

10-Year Treasury Yld Index --- 2 weeks

Oil dropped below 74 on mounting concerns over the pace of the US economic recovery, following more downbeat economic data. But it remains in the middle of its longer term trading range where it's expected to remain until the heating season begins in the fall. Gold fell the most in 3 weeks on mounting fears of an economic slowdown.

CLU10.NYM...Crude Oil Sep 10...73.60 ...Down 0.83

GCQ10.CMX...Gold Aug 10...1,223.00T...Down 10.80

Gold Super Cycle!!! Click Here

The 10-year treasury bond is heading for a 4th weekly gain, the longest run since Feb. Demand from buyers is rising on signs global economic growth is slowing, increasing the refuge appeal of safe haven securities. The yield on the 2-year note fell to another record low, while the 10-year yield was the lowest since Mar 2009. The 10-year bond yield fell 2 basis points to 2.58%. The yield has declined as much as 13 basis points in the last week & an amazing 46 basis points in 4 weeks. The rate on 2-year note was 1 basis point lower at 0.48%, after falling to a record low of 0.45½%. The 30-year yield fell 3 basis points to 3.63%.

Treasuries Heading For Weekly Advance as U.S. Reduces Size of Bond Sales

Treasury Seurities

U.S. 3-month
U.S. 2-year
U.S. 10-year

Enbridge Energy, a leading MLP, is cleaning up its pipeline spill into the Kalamazoo River & Lake Michigan. The primary clean-up on the banks of Talmadge Creek is now over half complete & EEP is making very good progress in preparing the lower half of the creek shoreline to be scraped & cleaned. EEP is down 60¢ today & down 6 (10%) from its recent high, not too bad all considered.

News Briefing: Statements From Enbridge News Briefing on Marshall, Michigan Pipeline Leak, August 19, 2010Marketwire

Enbridge Energy --- 1 month

There is nothing dramatically new in the markets, just a continuation of recent dreary economic news (especially the jobless data yesterday). Even red hot MLPs are feeling selling pressure. It looks like Dow will have to test the 9800 low reached last month.

Dow Jones Industrials --- 2 weeks

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