It looks like the market is still in waiting mode or better yet pre-game mode. When I was on the floor of the NYSE, at times like this, it almost felt as if everyone was at the starting blocks of a big race. You could almost feel the anxious glances as the racers(traders) would check out the other participants to see if they would bolt from the blocks early and head for the exits.
Copper was again front and center as the red metal fell 3% again yesterday. The move lower belies the economic uncertainty being felt in the U.S. and Chinese markets as China continues to try to dampen lending. Here is a chart fromwww.metalprices.com this morning on Shanghai copper inventories. The inventory levels are 2.5 times the level of last February and March. Not the sign of an expanding economy.
We had surmised that the market would find resistance at the 10,300 level on the Dow and the high was 10,307. If the market breaks down through 10,000 the next support level will be 9,700. The dollar continues its move higher as the Euro is still struggling with the fiscal problems in Greece. Sovereign debt (the public debt of nations) may be the sub prime of 2010. Greece is looking to the EU for a bailout and may get it. But, as we said in earlier posts, the market is starting to see this contagion of sovereign debt expanding into Portugal, Spain and Ireland.
CDS spreads are traded instruments which represent insurance policies on the rate of default of a security. Basically, you can buy an insurance policy on a debt instrument to insure if it goes into default. The higher the price goes the more people are willing to pay for that insurance indicating a higher chance of default. CDS spreads on Greece, Spain, Portugal and Ireland have risen to uncomfortable levels indicating a rising chance of default. The dominoes are lining up and any mass social unrest or strikes in Greece could be the match that lights the fuse.
Arthur Cashin has drawn my attention to some interesting research notes on worldwide water consumption and its effect on worldwide economic growth. I hope to delve into that further and its implications.
Answer: The only college football program with 3 Alumni who are Super Bowl winning Quarterbacks is The University of Alabama. The quarterbacks were Joe Namath, Bart Starr and Kenny Stabler. Notre Dame, BYU, Purdue and Stanford all had 2.
Today’s Question:Ken Norton Jr. played on 3 straight Super Bowl winning teams. Can you name the player who played on 5 straight Super Bowl losers?
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