Monday, April 09, 2007

Bonds off, dollar down, gold up

Bonds just couldn't get it up today as can be seen from the TLT chart below. As I type this, which is 10:43 pm EST, Kitco is showing the dollar index down 0.30 to 82.59 and gold up $3.30 to $674.40.

I don't know what it all means, other than being glad owning gold. Today's action was not inspiring as the rally based on the March jobs number failed to materialize even though I didn't put much credence in it myself. We're close enough to overbought territory that if the market does decide to roll over, it can. The broker/dealer index ($XBD) is not acting well, especially Bear Stearns (BSC). Nor is the banking index ($BKX) lending any support. Recall last time weakness in $XBD was the tip-off prior to the Feb 27 mini-crash. I think the market will be in a lot of hurt if earnings don't come strong this week.