Market Soapbox 04/27 & 04/28/06

Resistance: DJIA 11470; SP500 1320; Nasdaq 2380; NDX 1750
Support: DJIA 11075; SP500 1285; Nasdaq 2310; NDX 1695

In our top story tonight, Generalissimo Francisco Franco is STILL dead. On THU: Chinas first rate hike in 12 years to 5.85% from 5.58%. This sent the bond & equity markets plumeting downward.

Then, Bernanke saying that the Fed may "pause even if risks aren't balanced" launched a bond and equity market recovery. Afterhours, Microsoft punished 6% on light earnings and lower forward guidance.

Bonds UP with the 30 yr yield faling @ 5.16%; 10 yr @ 5.06; 5 yr @ 4.91; 2yr @ 4.86; 6 mo @ 4.91. 2yr above 10 yr 12/27 - 03/07 & 03/20 - 3/29. 2yr above 30 yr 02/09 - 03/07 & 03/21 - 3/29.

MON, oil pulled back big, but it was another ugly day for stocks on steady volume with ugly internals, DJIA -11.

TUE, oil continued to pull back and bonds tumbled, but no help for equities DJIA -53 on steady volume with ugly internals.

WEN, bonds continue to tumble, oil pulls back further on small EIA draw, and a bounce DJIA +71 on lower volume with nice internals.

THU, bonds back up with oil under $72, gold up and the dollar getting pounded down 5th straight session. DJIA +28 on higher volume with midlin internals.

DJUA, SOX, NDX UP nicely. XAU, XOI, RUT, DJTA beat DOWN, MID WEAK. Healthcare hammered down BIG 7%.

FRI, oil +1.2%, gold +3%, dollar hammered down and equities suffer, especially tech issues on Microsoft's forward guidance.

A split tape day DJIA -15 on higher volume with decent internals. This week DJIA +20. Since 09/23/05 +589.

Indexes UP: MID, RUT, XOI, XAU. DOWN: SOX, NAZ, NDX.

Sectors UP: Gold Bugs, Oil, Pharma, Healthcare bouncing back BIG +6.45%. DOWN: Airlines, Tech, Brokers, Networking, Semis.

Overseas: DAX, CAC, FTSE Hang Seng & Nikkei 225 all DOWN.

Dollar freefalling vs. Euro 1.2657 & vs. Yen 112.92, XAU & gold UP BIG 3%@ 654.50, XOI & crude UP 1% @ 71.88, CRB commodities index UP @ 349.89.

The market keeps hitting resistance and whipsawing up and down in an attempt to break out to new levels.

Small caps & Big Caps seem to be diverging, the dollar IS tanking and gold is soaring.

We are either, peaking and if near term support levels are breached will begin a longer term consolidation.

Or are perched at this level and will break through to the upside with conviction to head further north to 1795 NDX.

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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