Monday, August 28, 2006

Ernesto -- "I'm going to DISNEY WORLD!"

Tropical Storm Ernesto is over Cuba and headed for Florida. Oil prices are falling considerably on the hope that Ernesto will give all the Gulf area oil and gas production facilities a miss.

Meanwhile, bonds are a bit lower, probably due to dealers pricing in a concession to the 2 and 5-year auctions this week. You could also have some consolidation here. As I've said, the market has rallied hard the last few weeks, and we now need some data pointing to a steeper economic downturn in order to further fuel the rally. I've eliminated all my directional bets and am setting up for a steepener.

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1 comment:

Accrued Interest said...

Thanks for the comment. I've read the same about Street positions. Will be interesting as always.