Market Soapbox Week Ending 01/05/06

Resistance: DJIA 12580; SP500 1430; Nasdaq 2460; NDX 1800
Support: DJIA 12350, SP500 1405, Nasdaq 2400; NDX 1730

MAJOR YIELD CURVE INVERSION: Bonds UP with the 30 yr yield falling @ 4.74%; 10 yr @ 4.65; 5 yr @ 4.64; 2yr @ 4.76; 6 mo @ 5.08.

Recent Inversions: 2yr above 10 yr 12/27 - 03/07; 03/20 - 3/29; 06/08 - 07/26. 2yr above 30 yr 02/09 - 03/07 & 03/21 - 3/29; 6mo & 2yr above 30yr 06/13 - 07/20.

2yr above 10yr 08/03 - ?; 6mo above 10yr 06/02 -?; 6mo above 30yr 06/13 - ? 2 yr above 30yr 11/03 - 12/22

MON, New Years Day Market Closed

TUE, Gerald Ford Memoriam, Market Closed.

WEN, a wild ride, up 110 early, then down 35, closing DJIA +11 on higher fund inflow volume and midlin internals. All UP cept XAU, XOI, RUT, SOXX, XMI, NYA, SP500.

Bonds UP 10 yr 4.66, $ up vs 119.37y & down vs 1.3162E, gold down $629.80, crude punked 4.8% @ 58.10.

THU, a mirror image, down 70 early, then up 37, closing DJIA +6 on average volume with midlin internals. All UP cept XAU, XOI, XMI, NYA, DJUA.

Bonds UP 10 yr 4.60, $ up 119.035y & 1.3084E, gold down $623.60, crude plunging 4.5% @ $55.70. over 2 daysthe largest drop since Dec 04, -10%.

FRI, broadbased plunge, DJIA -83 on average volume with horrible internals. All DOWN cept XOI.

Bonds DOWN 10yr 4.65, $ down vs 118.63y & up vs 1.3008E, crude up 1.2% @ $56.27, gold down BIG 2.8% @ $608.40.

This week DJIA -66, since 09/19/05 DJIA +1764.

Dollar UP vs. Euro 1.3008 & DOWN vs. Yen 118.63, XAU DOWN 132.75 & gold DOWN BIG @ 608.40, XOI 1133.50 DOWN & crude DOWN BIG @ $56.27, CRB commodities index DOWN BIG @ 291.10

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