Market Soapbox 09/20/05

Resistance: DJIA 10750; SP500 1250; Nasdaq 2200; NDX 1625
Support: DJIA 10250 ; SP500 1200 ; Nasdaq 2050; NDX 1535

Today's SOOHEY PIG PIG award goes to the Fed for claiming that inflation is tame. Ask anyone who is reality based and they will tell you it is not.

Monday a down day with AUTHORITY DJIA -94, today a follow through with AUTHORITY DJIA -76, the market was up early but plummeted upon the FOMC announcement.

The RUT, MID, Gold Bugs, Telecom, Oil, Pharma, Cyclical, Commodity and Heathcare sectors were beat down like drums in a blood bath with very ugly internals.

European & Asian markets up. Dollar up vs. Yen & Euro , XAU & gold down, XOI & oil down, commodities & bonds split. Contra trend: Amex XAX went down.

Yesterdays crude jump was the highest single day jump since 1990, todays FOMC meeting put a knife into the markets back as the Fed did what most expected, raise 25 basis points for the 11th straight time and keep moving at a measured pace.

Bond prices up with the 10 year yield decreasing to 4.24%. The gap between 5 & 10 year notes stands at 19 basis points.

A 1.3% decline in Aug. housing starts and a 2.2% decrease in Aug. building permits presages the beginning of the housing market slowdown.

Today the "Katrina" era of corporate warnings began, Tempur-pedic, Chemtura, Estee Lauder and Brunswick all gave warnings using what will be the mantra in the coming year for poor performance and mismanagement.

The market has taken a turn for the worse as even the energy sector and precious metal stocks were pummeled today.

I expect more downside as the indices cannot find support about their 50 DMA's and there is a lack of leadership. If you have not already, get those Bermuda shorts ready.

We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.

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