Market Soapbox 10/31/05

Resistance: DJIA 10500; SP500 1225; Nasdaq 2150; NDX 1600
Support: DJIA 10200 ; SP500 1175; Nasdaq 2000; NDX 1500

Our top story tonight, Generalissimo Francisco Franco is STILL dead.

In other news, crude oil futures -2.38% today plunging below $60 helped lift the market as the oil sector, mid and small caps lead the way upward on improved economic news.

Personal income +1.7% vs. est 0.4%, personal spending matching est @ +0.5%. Chicago PMI at 62.9 vs. est. 57.2, new orders at 72.6 and production at 68.3, a vast improvement over last month.

Today's SOOHEY PIG PIG award goes to me for letting the pig have a quiet day in its poke.

6 weeks ago, DJIA -270 on higher volume, plunging below all major DMA's. 5 weeks ago, DJIA +148, up and down, lacking conviction. 4 weeks ago, DJIA -281 crashing through long term resistance levels on higher volume. 3 weeks ago, large swings up & down DJIA -6. 2 weeks ago larger swings, DJIA -77.

Last week, even larger swings, DJIA +186, over the last 5 weeks 300. Today, broadbased follow through on Fridays rocket ride, DJIA +37 on vastly improved internals, however the market did bleed into the close. RUT, MID, XOI & SOX leading the day up BIG, SP500, NAZ, NDX, DJUA & DJTA all up nicely. This week DJIA +37.

CAC +2.54%, DAX +2.14% & FTSE +1.99% up BIG, Hang Seng -2.14% down BIG & Nikkei 225 +2.45% up BIG. Dollar up vs. Yen & Euro, XAU & gold @ 466 down, XOI up & oil down @ 59.76, CRB commodities down & bonds up. Contra trend: none.

Sectors: Airlines, Biotech, Networking, Oil, Brokers, Retail, Tech, Telecom, Tobacco, Transports, Utilities, Commodities, Cyclicals, Healthcare & Semis, all up BIG. Gold Bugs down.

Bond prices up with the 10 year yield falling @ 4.55%. The 5 & 10 year gap @ 11 basis points. The 30 year @ 4.75, the 10 & 30 gap @ 20 basis points. The 2 and 5 year gap @ 6 basis points. Last week, the 10 year had its biggest weekly drop since March and the curve is flattening.

From Friday "Lets see if it can manage to stabilize and hold a direction, in the meantime we are in a holding pattern." Today's follow through on Fridays GDP induced market surge was encouraging, we need another day like this if we are going to rally for the year end.

However, tommorow the Fed raises 25 basis points to 3.75, we will see if their forward looking statement effects the market. Also, from Friday " I. Lewis Libby sure sounds alot like G. Gordon Liddy to me." CIAgate or Plamegate will continue to develop and is truly a major can of worms.

From 08/08/05: "Something that should be investigated is buying futures in the VXD (DJIA) and VIX (SP500), these indices measure volatility in the associated indices options. They both hit ALL TIME lows on July 20th." 07/20 close: VXD 9.69 VIX 10.23; 10/13 close VXD 15.75 VIX 16.47 Yowsa!!!

And our last story tonight, the ancient festival of Samhuinn (or "samhain" or "sah-ween") pronounced "Sowen" is tonight. Halloween has its roots in the Celtic festival of Sowen.

This was when the Celts (the ancient inhabitants of Great Britain) celebrated their New Year and the day they believed that the souls of those who had died that year progressed to the underworld.

It was said to be a night when ghosts, demons and witches roamed the earth and people tried to placate them with offerings of nuts and berries. These days its Snickers and M&M's for the little ghoulies.

Keep it tween da ditches, (and try to stay off the short end of the broomstick) 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 and Hey! Hey! Lets be careful out there...This is The Nattering Naybob and your NOT!!!

Comments