Market Soapbox 11/21/05
Resistance: DJIA 11000; SP500 1275; Nasdaq 2250; NDX 1700
Support: DJIA 10200 ; SP500 1175; Nasdaq 2000; NDX 1500
In our top story tonight, Generalissimo Francisco Franco is STILL dead. In other news, October leading indicators up 0.9% vs est. +0.8% vs prior -0.8%. This was a huge increase and the first positive report since August, which was largely ignored by the markets.
Fannie Mae shares +2% on the launch of $3 billion in new 5 year benchmark notes. NYSE has officially classified the company as a late filer and could if it wished delist Fannie Mae stock by year‘s end.
Remember, Fannie was created by Congress during the Great Depression to help keep money flowing to the housing market, and thats exactly what they have been doing during our recent unpublicized recession. Along with rival Freddie Mac, Fannie finances nearly half of the home mortgages in the United States.
Therefore, the NYSE will continue to bend the rules for Fannie, due to a multitude of unpublicized reasons, some of which we will elaborate on in postings later this week.
Todays, SOOHEY, PIG, PIG award goes to Lockheed Martin for today's wake up call on CSC. CSC was up 20% since 11/01 on reports that defense contractor Lockheed Martin Corp. and three private equity firms were in talks to buy the company, whose biggest client is the U.S. federal government.
33% of CSC's revenue comes from providing computer services and consulting for the U.S. military, CIA and other federal agencies. From 11/01/05 Soapbox re: Computer Sciences Corp, "We must comment, its amazing what a sack of turds will sell for these days. One word, suckers!!"
Today, at least two securities firms including Legg Mason and Wachovia, cut their ratings on CSC, saying the stock's recent gain was attributable to reports of the company's sale and not its earnings prospects. No kidding?
CSC shares dropped 12% following the ratings cuts and reports that the group of potential buyers abandoned talks to acquire the computer services company. Sounds like somebody took a hard look under the covers, and before it was too late, woke up and chewed their arm off. SOOHEY, PIG, PIG!!!
9 weeks ago, DJIA -270 breaking key support. 8 weeks ago, DJIA +148, lacking conviction. 7 weeks ago, DJIA -281 crashing down. 6 weeks ago, large swings DJIA -6. 5 weeks ago larger swings, DJIA -77. Five weeks of downturn totaling -486.
4 weeks ago, recovery begins with larger swings, DJIA +186. 3 weeks ago, broadbased gains DJIA +128. 2 weeks ago, DJIA +154. Last week, a slowing, DJIA +79. Four weeks of gains totaling DJIA +547.
Today, DJIA +54 on decent internals with tepid volume. Despite continued crude oil pullback, energy & materials provided support as tech took a breather. This week DJIA +54 , over the last 10 weeks DJIA +115.
Oil XOI & Precious Metals XAU leading the way, RUT & MID supporting, Tech laden NDX & semis SOX were initially weak, but rallied late day. CAC & DAX up, flat FTSE, Hang Seng low & Nikkei 225 up.
Dollar down vs. Euro & Yen, XAU & gold up, XOI up & crude down @ 56.14, CRB commodities & bonds up. Contra trend: none.
Sectors: Gold Bugs, Energy, Natural Gas, Oil, Oil Services, Security Broker, Healthcare, Tobbaco & Commodity all up. Airlines & Pharma down.
Bonds up with the 10 year yield falling @ 4.47% & the 30 year @ 4.66. The 2 & 5 year gap @ 2 basis points; the 5 & 10 year gap @ 7 basis points; the 10 & 30 gap holding @ 19 basis points.
Looking ahead at potential market influences, Nov 22: FOMC Minutes; Nov 23: Michigan Sentiment; Crude Inventories; Nov 25 Initial Claims.
Our SOX put for 440 and 450 was a complete miss as the SOX closed at 478 on Friday. Sometimes your right and sometimes your dead wrong.
Two weeks ago, the NDX hit a multi year high, Friday the Nikkei hit a 5 year high; the DAX a 3 year high; the SP500 and Nasdaq hit 4 1/2 year highs and the SP400 Midcaps hit an all time high as crude oil went to a 5 month low at $56.14. Today, crude did not move and the market advanced.
Keep it tween da ditches, 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, October leading indicators up 0.9% vs est. +0.8% vs prior -0.8%. This was a huge increase and the first positive report since August, which was largely ignored by the markets.
Fannie Mae shares +2% on the launch of $3 billion in new 5 year benchmark notes. NYSE has officially classified the company as a late filer and could if it wished delist Fannie Mae stock by year‘s end.
Remember, Fannie was created by Congress during the Great Depression to help keep money flowing to the housing market, and thats exactly what they have been doing during our recent unpublicized recession. Along with rival Freddie Mac, Fannie finances nearly half of the home mortgages in the United States.
Therefore, the NYSE will continue to bend the rules for Fannie, due to a multitude of unpublicized reasons, some of which we will elaborate on in postings later this week.
Todays, SOOHEY, PIG, PIG award goes to Lockheed Martin for today's wake up call on CSC. CSC was up 20% since 11/01 on reports that defense contractor Lockheed Martin Corp. and three private equity firms were in talks to buy the company, whose biggest client is the U.S. federal government.
33% of CSC's revenue comes from providing computer services and consulting for the U.S. military, CIA and other federal agencies. From 11/01/05 Soapbox re: Computer Sciences Corp, "We must comment, its amazing what a sack of turds will sell for these days. One word, suckers!!"
Today, at least two securities firms including Legg Mason and Wachovia, cut their ratings on CSC, saying the stock's recent gain was attributable to reports of the company's sale and not its earnings prospects. No kidding?
CSC shares dropped 12% following the ratings cuts and reports that the group of potential buyers abandoned talks to acquire the computer services company. Sounds like somebody took a hard look under the covers, and before it was too late, woke up and chewed their arm off. SOOHEY, PIG, PIG!!!
9 weeks ago, DJIA -270 breaking key support. 8 weeks ago, DJIA +148, lacking conviction. 7 weeks ago, DJIA -281 crashing down. 6 weeks ago, large swings DJIA -6. 5 weeks ago larger swings, DJIA -77. Five weeks of downturn totaling -486.
4 weeks ago, recovery begins with larger swings, DJIA +186. 3 weeks ago, broadbased gains DJIA +128. 2 weeks ago, DJIA +154. Last week, a slowing, DJIA +79. Four weeks of gains totaling DJIA +547.
Today, DJIA +54 on decent internals with tepid volume. Despite continued crude oil pullback, energy & materials provided support as tech took a breather. This week DJIA +54 , over the last 10 weeks DJIA +115.
Oil XOI & Precious Metals XAU leading the way, RUT & MID supporting, Tech laden NDX & semis SOX were initially weak, but rallied late day. CAC & DAX up, flat FTSE, Hang Seng low & Nikkei 225 up.
Dollar down vs. Euro & Yen, XAU & gold up, XOI up & crude down @ 56.14, CRB commodities & bonds up. Contra trend: none.
Sectors: Gold Bugs, Energy, Natural Gas, Oil, Oil Services, Security Broker, Healthcare, Tobbaco & Commodity all up. Airlines & Pharma down.
Bonds up with the 10 year yield falling @ 4.47% & the 30 year @ 4.66. The 2 & 5 year gap @ 2 basis points; the 5 & 10 year gap @ 7 basis points; the 10 & 30 gap holding @ 19 basis points.
Looking ahead at potential market influences, Nov 22: FOMC Minutes; Nov 23: Michigan Sentiment; Crude Inventories; Nov 25 Initial Claims.
Our SOX put for 440 and 450 was a complete miss as the SOX closed at 478 on Friday. Sometimes your right and sometimes your dead wrong.
Two weeks ago, the NDX hit a multi year high, Friday the Nikkei hit a 5 year high; the DAX a 3 year high; the SP500 and Nasdaq hit 4 1/2 year highs and the SP400 Midcaps hit an all time high as crude oil went to a 5 month low at $56.14. Today, crude did not move and the market advanced.
Keep it tween da ditches, 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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