The Morning Morsel – China Not So Hot

New data showing that China is slowing down is pounding global markets this morning. Our 10 year note is trading under 3%. The S&P is down about 1.5% and the Nazzy is off about 25 points. The Nazz was the only index that held the market together yesterday.

The DAX is down 2.3%, FTSE down 2.2% and Shanghai skid over 4%.

Spain has gozillions due this month, they don’t have it, so that should be interesting, and there is more talk this morning of a default for Greece. Don’t investors realize they all promised they would cut their deficits in half 2013?

The greenback is higher and oil is breaking back under $77 on the absence of global growth. Gold failed yesterday after its second attempt to make new highs failed, however I don’t expect that to last.

FINREG, a certainty on Monday, is now uncertain as Senator Byrd passed away and even some Democrats are threatening to vote nay as the new package introduces $19 billion in new taxes. So that “done deal” isn’t so done now and the market hates uncertainty.

Consumer confidence is out at 10AM and the Case Shiller Housing report is also out. The big non-farm payroll is out on Friday. Tough to be long in front of all this.

The dollar is a safe haven now, but more bears on the currency are coming out of the woodwork. The conversation is also heating up about our State municipalities that could be in rollover mode.

Oil continues to destroy the southern region of our country and the Jones Act is still not scrapped. Four states could be ruined for the next 20 years, but we don’t want to overturn the Act because it will piss off the unions. What a disgrace.

So much for the “window dressing” theory for quarters end. Now it just looks like investors want to pack up their tents and wait for July.

We’re short agriculture and fertilizers (POT, CF) look horrible, as well as some drillers on the Premium Site, so come on by to see what we’re doing. GOOG continues to look vulnerable here too.

Tuesday, June 29, 2010
08:30 Canada May Industrial Product Price Index
09:00 US April S&P/CS Home Price Index, S&P/CS Composite-20
10:00 US June Consumer Confidence
15:00 Argentina May Construction Activity
16:30 API Crude Oil/Gasoline/Distillate Inventories
Brazil FY11 Budget to be announced. Oppenheimer Consumer, Gaming, Lodging and Leisure Conference. CTIC Shareholder Meeting. 07:45 ICSC/UBSW Chain Store Sales. 08:55 Redbook Retail Sales. ABC Consumer Confidence. Trades Ex-dividend: APD $0.49, CAH $0.195, KIM $0.16, RSG $0.19.
After the Close: EXFO, GIS, ZZ, WOR.
Previous Post
The Wrap 6/28/10
Next Post
The Wrap

Recent Articles