Market Soapbox 11/01/05
Resistance: DJIA 10500; SP500 1225; Nasdaq 2150; NDX 1600
Support: DJIA 10200 ; SP500 1175; Nasdaq 2000; NDX 1500
In our top story tonight, Generalissimo Francisco Franco is STILL dead.
In other news, the FED raised 25 basis points to 4.00% and will continue to raise through January's meeting to bring Fed Funds to 4.50%. The Dollar hit a two year high against the Yen & the Nikkei 225 closed at a five year high.
Dell missed and gave forward warnings due to weakness in its U.S. consumer business, Dell fell -8.28% today hitting lows not seen since May 2003.
CSC Computer Sciences surged 14% amid reports that Lockheed Martin and three private equity firms may acquire CSC for about $12 billion. We must comment, its amazing what a sack of turds will sell for these days. One word, suckers!!
Speaking of turds, for October YOY US Auto Sales, Chysler +4%, GM -24% & Ford -26%, Toyota +10%, Nissan +16% & Honda +12%. We have one word for Ford & GM, Ouch!! Ok maybe two words, Get out!!
The Oct ISM Index prices paid component rose to 84.0, the highest since May 2004. Yesterday, the AMEX Securities Broker/Dealer index hit an all time high. Today, modest consolidation in the brokerage group followed, coupled with weakness in REITS and insurance.
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. Monday: broadbased follow through on Fridays action DJIA +37. Today, the opposite DJIA -33 on deteriorating internals. This week DJIA +4, over the last 5 weeks DJIA -296. Two words, consistently inconsistent.
DJTA, XOI & MID barely up, DJUA -2.64% & XAU -1.80% flattened, RUT, SP500, NDX & NAZ down. CAC, DAX & FTSE flat, Hang Seng flat & Nikkei 225 +1.92% up BIG closing at a 5 year high.
Dollar down vs. Yen & Euro, XAU down & gold up, XOI & oil up, CRB commodities & bonds down. Contra trend: none. Sectors: Oil, Oil Services, Internet, Software, Energy, Transports & Healthcare up. Real estate, Reits, Tobacco, Utilities, Pharma & Semis beat down.
The curve flattens further, bond prices down with the 10 year yield rising @ 4.56%. The 5 & 10 year gap @ 10 basis points. The 30 year @ 4.75, the 10 & 30 gap @ 19 basis points. The 2 and 5 year gap @ 5 basis points.
From Yesterday: "However, tomorrow the Fed raises 25 basis points to 3.75, we will see if their forward looking statement effects the market." Just the raise and unchanged statement along with Dell's warnings & the auto sales report, pulled the market down.
From Yesterday: "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." No follow through, we are still in a holding pattern. And I fear we may be in a holding pattern until Jan 1st, hopes of a year end rally are fading with each day that passes.
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!!!
Support: DJIA 10200 ; SP500 1175; Nasdaq 2000; NDX 1500
In our top story tonight, Generalissimo Francisco Franco is STILL dead.
In other news, the FED raised 25 basis points to 4.00% and will continue to raise through January's meeting to bring Fed Funds to 4.50%. The Dollar hit a two year high against the Yen & the Nikkei 225 closed at a five year high.
Dell missed and gave forward warnings due to weakness in its U.S. consumer business, Dell fell -8.28% today hitting lows not seen since May 2003.
CSC Computer Sciences surged 14% amid reports that Lockheed Martin and three private equity firms may acquire CSC for about $12 billion. We must comment, its amazing what a sack of turds will sell for these days. One word, suckers!!
Speaking of turds, for October YOY US Auto Sales, Chysler +4%, GM -24% & Ford -26%, Toyota +10%, Nissan +16% & Honda +12%. We have one word for Ford & GM, Ouch!! Ok maybe two words, Get out!!
The Oct ISM Index prices paid component rose to 84.0, the highest since May 2004. Yesterday, the AMEX Securities Broker/Dealer index hit an all time high. Today, modest consolidation in the brokerage group followed, coupled with weakness in REITS and insurance.
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. Monday: broadbased follow through on Fridays action DJIA +37. Today, the opposite DJIA -33 on deteriorating internals. This week DJIA +4, over the last 5 weeks DJIA -296. Two words, consistently inconsistent.
DJTA, XOI & MID barely up, DJUA -2.64% & XAU -1.80% flattened, RUT, SP500, NDX & NAZ down. CAC, DAX & FTSE flat, Hang Seng flat & Nikkei 225 +1.92% up BIG closing at a 5 year high.
Dollar down vs. Yen & Euro, XAU down & gold up, XOI & oil up, CRB commodities & bonds down. Contra trend: none. Sectors: Oil, Oil Services, Internet, Software, Energy, Transports & Healthcare up. Real estate, Reits, Tobacco, Utilities, Pharma & Semis beat down.
The curve flattens further, bond prices down with the 10 year yield rising @ 4.56%. The 5 & 10 year gap @ 10 basis points. The 30 year @ 4.75, the 10 & 30 gap @ 19 basis points. The 2 and 5 year gap @ 5 basis points.
From Yesterday: "However, tomorrow the Fed raises 25 basis points to 3.75, we will see if their forward looking statement effects the market." Just the raise and unchanged statement along with Dell's warnings & the auto sales report, pulled the market down.
From Yesterday: "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." No follow through, we are still in a holding pattern. And I fear we may be in a holding pattern until Jan 1st, hopes of a year end rally are fading with each day that passes.
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!!!
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