6/28/11…transparently opaque

Bloomberg Top Stories:

*Trichet’s ‘Strong Vigilance’ Comment Signals ECB to Raise Rates Next Week

*U.S. Stock-Index Futures Erase Loss as Treasury Yields, Crude Oil Advance

*Leveraged Loans Head for First Loss of 2011 on Greek Woes – it never lasts!

*Siemens Drops on Forecast of Fading revenue Benefit From Economic Growth

*Money Funds in U.S. Unfazed by Geek Crisis Watch Out for Spain Contagion

*Funds Boost Corporate Debt Holdings as Stock Market Slumps – there you go!

*Romney’s View on Bank Lending Policies Not Backed by Data

*Wal-Mart Swipes JPMorgan in Lobbying Duel Over $16 Billion Debit-Card Fees

*Greek Strikers Shut Down Transport, Government as Papandreou Seeks Backing

*Qaddafi Out of Options as War-Crimes Indictment Limits Exile Destinations

*New York Prepares for Same-Sex Wedding Surge as State Makes Unions Legal

Volume slumped to 3.27B shares from Friday’s  huge 4.49B shares with Big Board providing just 835M vs. 1.74B shares Friday (highest since March 18th. Friday’s inside day was met with a drive that erased ‘most’ of Friday’s losses and took the Dow barely above 12k. Note major support is the 200 day at 11,777 – still not very far! The Dow has been down seven of the last eight weeks, with the the only bounce being to 12,004.

Yesterday, the Dow was +0.9% vs -1%; Transports  +0.9% vs -1.7%; S&P 500 +0.9% vs -1.2%, Nasdaq Composite +1.3% vs -0.3%; 100 +1.6% vs -1.3%, while the Russell 2000 was +0.9% vs -0.3%. Advance/Declines were +2x vs -1.9x on NYSE and +2x vs -1.5x on AMEX! Breadth +3.5:1 vs  -4.5:1 on the NYSE and +3:1 vs -3:1 on Nasdaq!

BofA +3.1% vs -1.8% on 202M shares vs121M – so much fun to trade a $10 stock for pennies!  That is about 8% of total volume vs. 25%+ on Friday.

Overnight, the Dollar slipped slightly to 75.21 with major res at 76 as the see-saw between the EU and Greece continues. U.S. Treasuries are slightly weaker except the long bond (+1/8) which was the loser yesterday.. Gold is dead in the water at $1500.90 +$4.50 while Crude is bouncing to $91.82 +$1.21.

…not much worth commenting on except the seesawing markets as we approach Thursday’s quarterend. We live in a world controlled by flash trading with real buyers absent. We have traditional stock buyers like endowments shifting to fixed income. We can’t even get a debt ceiling approved and might continue to kick the budget down the road as ideologues try to give us simplistic solutions while promoting their own constituencies. It most certainly is not the fault of the poor that we are where we are today. On Sunday, TB listened to a conversation wherein it was proposed that a 10% flat tax eliminating all other taxes would solve the problem? For whom? The wealthy? Yep, let’s pull those social safety nets and increase the ranks of those below the poverty level so they can pay their fair share. Gosh, it all comes together so easily when you see it that way…unless you do the math!

Oh well, Michele Bachmann has the answers…ask her!

. . .  – – –  . . .   . . .  – – –  . . .   (again, that is SOS, folks!)

Today is summer in Minnesota…it may end at 2:30pm though. Enjoy it!

TB

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