Market Soapbox 05/25/06

Resistance: DJIA 11775; SP500 1335; Nasdaq 2380; NDX 1750
Support: DJIA 10850; SP500 1250; Nasdaq 2150; NDX 1550

In our top story tonight, Generalissimo Francisco Franco is STILL dead. Enron executives Lay & Skilling convicted on conspiracy and fraud charges. Really? Do ya think?

Bonds DOWN with the 30 yr yield rising @ 5.17%; 10 yr @ 5.07; 5 yr @ 4.97; 2yr @ 4.96`; 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 a deceiving -19 on another broadbased selloff with Hindenburg like internals on lower volume. The good news?? bouncing up into the close from over 70 points down.

TUE, mirror image of MON, DJIA up over 70, then pffffttttt into the close DJIA -27 on steady volume with semi ugly internals.

WEN, a choppy day with a late surge DJIA +19 on higher volume with ugly internals.

THU, a broadbased bounce spiking into the close, DJIA +94 on low volume with decent internals. This week DJIA +67, since 09/19/05 DJIA +580.

Indexes UP: Everything else nicely DOWN: SOX

Sectors UP: Everything else nicely DOWN: Semi's

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

Dollar DOWN vs. Euro 1.2829 & vs. Yen 111.38, XAU +4.4% & gold +1.7% @ 651.70, XOI +3% & crude +2% @ 71.32, CRB commodities index UP @ 346.39

Todays, 5 year T-note auction produced a tepid 22.1% indirect bidder participation, high yield was 4.945%. Followthrough on yesterday's late day attempt at a rebound was decent.

2nd straight day of $ & bonds getting clubbed while equities & commodities are attempting to recover. Will investors believing in oversold conditions give it legs? If so, we see a rebound coming.

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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