Market Soapbox 03/06/07

TUE, "oversold" bounce, DJIA +157 on average volume with pretty internals. All UP BIG.

Bonds down 10 yr 4.52, $ up BIG vs 116.525y & down vs 1.3128E, WTI crude up 1% $60.67, gold up 1.5% $648.80.

Asian & European markets rallied nicely, as did the US on encouraging Fed speak and carry trade stabilization.

The yen plunging the most versus the Euro in 17 months and posting its biggest pullback against the dollar in three months.

Last night something was brewing afterhours and we speculated on a bounce that could lead to 1420-1425 or a fall off a cliff... An enquiring Naybob asked "well which is it?" ...

Today the SP500 bouncing up from 1375 to test 1397. Perhaps more bounce to 1410 on Wend, then another dive??? Or could we just fall from grace right here, right now?? I side towards more bounce first...

To be filed under B for "bizarre" or for those who "Believe" in reincarnation, find a weekly chart of the DJIA from 1930 - 1937, superimpose it on a chart of 2000 to present...

It's deja vu all over again, the two charts might as well be the same, and we have retraced to mid March 1937, see what's ahead??

Comments