Market Soapbox 05/12/06

Resistance: DJIA 11775; SP500 1335; Nasdaq 2380; NDX 1750
Support: DJIA 11075; SP500 1285; Nasdaq 2275; NDX 1670

In our top story tonight, Generalissimo Francisco Franco is STILL dead. Jim Jubak at MSN sez the FED be done with rate hikes. I got one word for Jim, and I wish Madonna could deliver it, NOT!!

But JJ has a nice missive on how climbing credit card and mortgage rates, along with a dollar plunge will effect the economy.

Bonds DOWN BIG with the 30 yr yield rising @ 5.30%; 10 yr @ 5.18; 5 yr @ 5.07; 2yr @ 5.00; 6 mo @ 5.01. 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 +7 on lower volume with soso internals.

TUE, a split tape day, DJIA + 55 on lower volume with lousy internals. DJIA within 80 points of all time high, gold jumps 700. Commodities & Oil up BIG, Tech pounded down.

WEN, DJIA +3 on lower volume with lousy internals. Tech and small caps got pounded down.

THU, we called for a "slight dip", whoa Hoss!!! It was a TAKE NO PRISONER's kinda day, DJIA -142 in a broadbased selloff on higher volume with absolutely horrific internals.

FRI, a "slight dip" looks like a nice consolidation at this point. 2nd straight broadbased selloff on triple digits down. DJIA -120 on steady volume with horrific internals. This week DJIA -207, since 09/23/05 DJIA +564.

Indexes UP: NONE. DOWN: EVERYTHING AND BIG TIME.

Sectors UP: Healthcare DOWN: EVERYTHING ELSE POUNDED SENSELESS

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

Dollar DOWN vs. Euro 1.2909 & vs. UP vs. Yen 109.82, XAU -5% & gold DOWN @ 713, XOI & crude DOWN @ 72.35, CRB commodities index DOWN @ 362.44

Import prices rose the most in 7 months, more inflation reality is creeping in to the market. Mondays net foreign purchases could be an eye opener, as Asia slowly backs away from our Treasuries and the dollar.

Tues PPI, Wend CPI, more CORE inflation?? This would kick bonds down and raise rates some more, and equities would not like it. Lets wait and see.

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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