Market Soapbox 03/01/06

Resistance: DJIA 11170; SP500 1300; Nasdaq 2330; NDX 1730
Support: DJIA 10900; SP500 1280; Nasdaq 2260; NDX 1665

In our top story tonight, Generalissimo Francisco Franco is STILL dead. In other news, todays ISM, PCE and construction spending covered in another post. Auto & Truck Sales, Chrysler +3%; GM -2.5% cars -13%, trucks +5%; Ford -3%, Honda +8.7%.

EIA inventories; crude +1.6M barrels, distillates -1.5M, gasoline +300K at their highest level since June 1999 despite an increase in demand to 9M barrels per day. Crude futures jumped 1%

Recent DJIA History: 23 weeks ago, -270 breaking key support, 22 weeks +148, 21 weeks -281, 20 weeks -6, 19 weeks -77, (5 week loss -486). 18 weeks recovery begins +186, 17 weeks +128, 16 weeks +154, 15 weeks +79, 14 weeks +165, (5 week gain +712).

13 weeks -53, 12 weeks -99, 11 weeks +99, 10 weeks +8. 9 weeks -168, (5 week loss -213). 8 weeks +242 on a broadbased new year buy in, 7 weeks +0, 6 weeks -292, 5 weeks +240, 4 weeks -113. (5 week gain +77). 3 weeks DJIA +125, 2 weeks DJIA +196, Last week DJIA -52.

Mon, DJIA +36 leaking into the close on lower volume with decent internals. Tues, DJIA -104 in a broadbased selloff on higher volume with horrible internals.

Today, a bounce DJIA +60 on average volume with pretty internals. This week DJIA -8, over the last 4 weeks DJIA +261, over the last 23 weeks DJIA +351.

DJUA down, DJTA, NDX, SOX, MID, RUT, XOI & XAU all up nicely. CAC, DAX & FTSE up, Hang Seng & Nikkei 225 down BIG.

Tech, Semis +4%, Cyclical, Commodity, Transports, Brokers, Oil, Telecom, Networking & Gold Bugs up nicely. Utilities down.

Dollar up vs. Euro & Yen, XAU & gold up @ 565.8, XOI & crude up @ 61.97, CRB commodities up.

Yield curve MAJOR INVERSION bonds down with the 30 yr yield rising @ 4.55%; 10 yr @ 4.58; 5 yr @ 4.62; 2yr @ 4.70; 6mo @ 4.74. In a full tilt boogey, 2yr is above the 30 year since 02/09.

Looking ahead at potential market influences: Mar 2 Initial Claims; Mar 3 ISM Services.

Yesterday: "Lets see what tomorrow brings as today looked like a right side shoulder forming." Today a broadbased bounce. The schizo herks and jerks are which are getting bigger and more frequent are not a healthy sign.

The MID finally made his all time high today. We patiently watch, tomorrow is D Day for the yield curve inversion and we await March 8th-10th.

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, this is The Nattering Naybob and your NOT!!!

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