Market Soapbox 05/02 & 05/03/06

Resistance: DJIA 11475; SP500 1320; Nasdaq 2380; NDX 1750
Support: DJIA 11075; SP500 1285; Nasdaq 2275; NDX 1670

In our top story tonight, Generalissimo Francisco Franco is STILL dead. PnG sales fell short of expectations and gave lowered forward guidance.

PnG stock punished 4.5% on 2.5X volume, down to $55.5 and in a 36 trading day skid since hitting $62.5 on 03/13. Keep your eyes on this one.

Bonds DOWN with the 30 yr yield rising @ 5.22%; 10 yr @ 5.14; 5 yr @ 5.00; 2yr @ 4.93; 6 mo @ 4.98. 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, DJIA -24 bleeding into the close on lower volume with ugly internals. TUE, a broadbased bounce on lower volume with decent internals DJIA +73.

WEN, DJIA -16 on lower volume with ugly internals. This week DJIA +33, since 09/23/05 DJIA +622.

Indexes UP: DJTA, SOX. DOWN: DJUA, NYSE, XAU, XOI

Sectors UP: Airlines, Transports, Cyclical, Semis DOWN: Gold Bugs, Biotech, Natural Gas, Oil, Healthcare BIG -5.5%

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

Dollar UP (for a change) vs. Euro 1.2671 & vs. Yen 112.84, XAU DOWN & gold UP @ 668.5, XOI & crude DOWN 3%@ 72.28, CRB commodities index DOWN @ 352.20. Unexpected EIA build drove crude and gasoline prices down.

NDX and NAZ have plunged below 75 DMA. If Fridays Non Farm Payrolls is over 200K, that will be the 3rd consecutive 200K+ month.

This would stoke inflation fears, cause a bond market cave in and knock the equity markets down BIG. Next weeks FOMC statement will be critical.

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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