At the time of publication, Kass had no positions in securities mentioned.
Early-Morning Market Look
Originally published on Friday, March 15 at 8:00 a.m. EST.
- Let's take a peek at the overnight and early market movements.
Overnight the beat goes on:
- S&P futures flat;
- European markets down;
- euro up;
- gold flat;
- crude flat; and
- 10-year U.S. note yields 2.03%.
The second stage of the stress test was good for
Bank of America
and bad for
, but I thought even more significant were the findings against JPMorgan Chase.
In other news, the certainty of the trajectory of the U.S. housing recovery is challenged by a spate of new foreclosures and by rising mortgage rates.
And then there was the introduction of the new
Today is expiration day. (Note:
SPDR S&P 500 ETF Trust
is ex-dividend about $0.70.)
Now, back to the markets.
Mr. Market goes for the 11th consecutive rise today.
I don't want to sound like I am nitpicking, but the low-volume rise has raised some other questions to me.
First, look at the diminishing number of new highs on the
-- all the while, the market moved steadily higher:
- Last Friday, March 8 -- new highs = 351
- Monday, March 11 -- new highs = 315
- Tuesday, March 12 -- new highs = 220
- Wednesday, March 13 -- new highs = 104
- Thursday, March 12 -- new highs = not yet available on Bloomberg
Second, the Dow Jones Transportation Average is now about 19% above its 200-day moving average. The last time this occurred was in early May 2010 -- the market proceeded to drop by 18% over the next two months. And in January 2010 the Dow Jones Transportation Average stood 19% above its moving average -- it fell by 12% over the next month. Finally, in May 2006, the Dow Jones Transportation Average (this time) was 21% over its moving average -- it fell by 11% over the next two months.
At the time of publication, Kass was short BAC, GS and SPY.