Wednesday, September 15, 2010

Stock markets are looking for direction again

Stocks started lower but returned to around break even. Dow is up 25, decliners slightly ahead of advancers & NAZ added 1. Banks were lower after a good rise in the last 2 weeks. The 200 level was too difficult for the Financial Index to crack.


Value 196.77 One-Year Chart for S&P 500 FINANCIALS INDEX (S5FINL:IND)
Change -0.77 (-0.4%)

The Alerian MLP Index was flattish, just under 330 while the REIT index slipped fraction in the 212s. Junk bond funds were a smidgen lower, but near their highs for 2010. The VIX, volatility index, rose a fraction to the 22s, remaining near its lows since the market drop in early May. The yield on the 10 year Treasury bond went up 4 basis points to 2.68%, still a little above recent lows below 2.50%.

Treasury Securities

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

Alerian MLP Index --- 2 weeks

Dow Jones REIT Index --- 2 weeks

VIX --- 2 weeks

10-Year Treasury Yld Index --- 2 weeks

Oil fell for a 2nd day as traders bet US crude inventories dropped less than initially forecast & Enbridge Energy got permission to restart its ruptured pipeline supplying the Midwest. Gold rested after yesterday’s record when investors sought protection from turmoil in the global economy & financial markets. Gold bulls are looking for 1300 which could come very soon. A link button below is provided for those who want to learn more about gold & its value as a safe haven & long term investment for capital gains.

CLV10.NYM...Crude Oil Oct 10...75.39...Down 1.41

GCU10.CMX...Gold Sep 10...1,269.20 ...Down 0.50

** Gold Super Cycle Link! ** Click Here

Mortgage applications for home loan refinancing fell for a 2nd straight week. Rock-bottom interest rates are failing to boost demand for housing. The Mortgage Bankers Association said its index of mortgage applications (including both purchase & refinance loans) for the latest week decreased 8.9% & the 4-week moving average was down 0.8%. Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.47%, down 0.03 percentage point from the previous week & is only 0.04 percentage point above its lowest level since 1990.

Enbridge Energy (EEP) will be allowed to restart a key oil pipeline supplying the Midwest by the end of the week, following the repair to a rupture at the scene of the leak in Romeoville, Illinois after EEP submitted a restart plan to the Pipeline & Hazardous Materials Safety Administration. EEP's line 6A can carry 670K barrels a day of crude, equal to more than one-third of Midwest oil imports. EEP units were down pennies to $53 today after dropping a good $2 following the announcement of the pipeline leak last week.

Enbridge Allowed to Start Midwest Oil Pipeline by End of Week, U.S. Says

Enbridge Energy --- 2 weeks

Stock markets had a nice rally in the last 2 weeks, as shown in in the graph for the Dow. Dow crossed 10½K but is sputtering for the time being. In the mean time, gold is hot again. I took a day off & it jumped to a new record. It's doing well because its value is seen as excellent for the short & long term. My posting in the PM may be spotting, my friend wants me to take her dog to the vet.

Dow Jones Industrials --- 2 weeks

GLD (ETF) --- 2 months

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