markets to roar tomorrow, page-9

re:dow sell off 31/07 From the Schafaer Report.......this morning

For all intents, yesterday's release of an overburdening amount of economic
data demonstrated economic growth in a low inflationary environment. Just
about as good as one could ask for. The market ramped up for most of the
session, but a chink in the armor appeared a little after 2:00 p.m. It
appeared as a "salvageable dip," but was put out of reach commencing about
3:20 p.m. There are a number of unsubstantiated reasons for the selling.
Some say the yields in treasury suddenly became attractive relative to
stocks. I can't buy that one because it is equated at this point in time to
a high-dividend paying stock whose yield continues to increase (as the
shares persist in decline- no real bargain). There is the possibility that
a major player in the bond market had to start covering losses and
liquidated a large equity position. Certainly the volume came in strong and
the selling seemed intense to justify an institutional trade of some sort.
My last guess would be that a little profit taking would have been in order
ahead of today's potentially market moving releases of key pieces of
economic data.