TED spread at 38.33 @ 6:52 EST. Positioned to remain high, but it has been on an exponential tear lately, as banks re-evaluate their counter-continent risks. This says US bank lending is "safer" relative to European bank lending.
CSFB made a new low to 20.73 on a market move to the low 1060s. The comfort/consolidation zone has been increasing. The last time CSFB made a lower spike on a lower move was 1106 and 1070. The /ESM0 depth is shrinking versus CSFB depth, implying a controlled downside is expected. If we break a new high on CSFB, another 'uncomfortable' uptrend might occur.
Longer term, ideally, the bulls want protective spreads to shrink, with the market moving higher, solidifying the uptrend. A study of the logarithmic values of CSFB versus the logarithmic SPX value may identify if this index is influenced by large numbers.
Fun+Dumb+Entrails (aka Fundamentals):
As fear of a PIGS banking fallout looms, the ticker reads that Spain is backing their banks (bullish); Q1 GDP is almost on-mark, but lower at 3.0% (bullish); Q1 GDP Deflator is up fractionally (bearish); Initial and continuing claims are up slightly (bearish). The consensus was for slightly decreasing claims.
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