Bear Mountain Bull

Typical Fed day chaos. As usual, a morning bump up. Then, a bunch of bobbing and weaving following the announcement. Up 120, then up 60, then up 150, then up 120, only to give most of it back in the final half hour and drag the S&P and Nasdaq back to the flat line.

Does any of the movement make much sense? Probably not.

The Russell and the Transports continue to lag the other indices pretty badly:

Internals were mixed, with volume right around yesterday’s level. Advances/declines were 10 to 9 on the NYSE but 2 to 3 on the Nasdaq, with up/down volume 4 to 5 on the NYSE and flat on the Nasdaq. New highs/lows were 60/5 on the NYSE and 52/41 on the Nasdaq.

Leaders — HMOs (+4.65%), Health Care (+1.25%), Drugs (+1.19%), Health Care Products (+0.89%), Gold/Silver (+0.79%), Comp. Tech (+0.76%), Utilities (+0.73%), Software (+0.72%)
Laggards — REITs (-2.28%), Banks (-2.14%), Hospitals (-2.06%), Disk Drives (-2.04%), Biotechs (-1.71%), Transport (-1.62%), Oil Services (-1.19%), Paper (-1.04%)

Treasury Yields — 6-Month: .15%,  2-Year: .90%,  5-Year: 2.37%,  10-Year: 3.52%,  30-Year: 4.40%

Energy Prices — Crude oil: $80.40/barrel,  Gasoline: $2.0127/gallon,  Natural Gas: $4.725/mmBTU

US Dollar Index — 75.743

Precious Metals — Gold: $1092.80/ounce,  Silver: $17.43/ounce,  Platinum: $1359.00/ounce

BMB Note:  
I don’t think it’s ever real good news when the Dow slips from +157 to +30, but then it can take a while for the real ‘reaction’ from the Fed to take hold — or just for the market to get back to what it was doing before it was so rudely interrupted, and that was ’starting to roll over’.

The little bounce of the past couple of days is starting to present some possible shorts.