Generally, when I see this, a raid is forthcoming. Commercials are loading the wagon with shorts and they generally orchestrate a raid to relieve them of their gorged shorts.
Here are some numbers from yesterday's trading:
the yield on the 10 year note rose a bit to 3.66% and the long bond stayed around the 116.00 level.
The usa dollar closed the regular session at 78.75 and then rose in the aftermarket to 78.85. We are still seeing strong evidence of inflation brewing in the usa. Watch the Euro. If it breaks above 143.00 there will be no resistance until it hits 1.55.
The fall in the dollar certainly does not bode well for inflation.
I will state that it will be impossible to the usa authorities to reign in inflation once it lashes out on society.
OK lets go for the economic news of the day:
First, University of Michigan sentiment showed a decline in June:
Here is a commentary on the housing gain on Thursday. As I pointed out to you then, most of the sales were foreclosures:
I pointed out to you trouble brewing between the Bank of England, politicians, and the House of Representatives with respect to the purchasing of debt by the Bank of England for its own account i.e. Q.E.
please read these exchanges:
Capital One came out with earnings and it beat the street and the stock rose. However their earnings were phony:
Last night, it looks like the FASB board has a change of heart. They do not like what they are witnessing with the likes of all banks reporting fairy tale earnings: Please read and reread this:
(it is the biggest story of the day)