Market Soapbox 03/31/06

Resistance: DJIA 11325; SP500 1310; Nasdaq 2340; NDX 1710
Support: DJIA 10950; SP500 1270; Nasdaq 2250; NDX 1635

In our top story tonight, Generalissimo Francisco Franco is STILL dead. Economic reports in todays other post.

Delphi is expected to ask a federal judge to void its union contracts and impose steep wage and benefit cuts today. The resulting strike could potentially cripple GM.

YIELD CURVE CORRECTION, Bonds UP with the 30 yr yield falling @ 4.89%; 10 yr @ 4.85; 5 yr @ 4.81; 2yr @ 4.82; 6 mo @ 4.81. 2yr above 10 yr 12/27 - 03/07 & 03/20 - 3/29. 2yr above 30 yr 02/09 - 03/07 & 03/21 - 3/29. Highest yields since June 2004.

DJIA week ending: 09/23 -270 breaking key support, 09/30 +148, 10/07 -281, 10/14 -6, 10/21 -77. (5 week loss -486). 10/28 recovery begins +186, 11/04 +128, 11/11 +154, 11/18 +79, 11/25 +165, (5 week gain +712).

12/02 -53, 12/09 -99, 12/16 +99, 12/23 +8, 12/30 -168, (5 week loss -213). 01/06 +242 on a broadbased new year buy in, 01/13 +0, 01/20 -292, 01/27 +240, 02/03 -113. (5 week gain +77).

02/10 +125, 02/17 +196, 02/24 -52. 03/03 +6. 03/10 +61, (5 week gain +336). 03/17 +159, 03/24 +0 (2 week gain +159). Mon, DJIA -30 on lower volume with midlin internals.

Tues, a WWF slapdown from 2:15PST on. DJIA -96. Wen, DJIA +61 on a broadbased bounce with steady volume and peachy internals. Thur DJIA -65 on steady volume with midlin internals.

Today, DJIA -41 on lower volume with ugly internals. This week DJIA -171, since 09/23/05 DJIA +419.

Indexes UP: DJTA, MID, RUT. DOWN: DJUA, NYSE, SOX, XAU, XOI, . Sectors UP: Airlines, Brokers, Transports, Banking. DOWN: Semis, Commodity, Utilities, Oil, Pharma, Natural Gas, Networking, Gold Bugs. Overseas: DAX, CAC, FTSE, Hang Seng all DOWN & Nikkei 225 UP.

Dollar UP vs. Euro 1.2114 & vs. Yen 117.73, XAU & gold DOWN @ 582, XOI & crude DOWN @ 66.63, CRB commodities index DOWN @ 332.90. Natural Gas -3.7%; Gasoline -2.5%

Looking ahead at potential market influences: April 3 Auto & Truck Sales, Construction Spending, ISM Index, Pending Home Sales; Apr 5 ISM Services, EIA Crude; Apr 6 Initial Claims, BOE & ECB Announcement; Apr 7 Non Farm Payrolls; Wholesale Inventories; Consumer Credit.

Yesterday:"we don't expect the market to act kindly until theres a pullback in yields or energy." They pulled back slightly and it didn't help much. A Delphi strike would cripple GM and this would be the straw that broke the camels back.

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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