Market Soapbox 05/31/07

THU, split tape flats, DJIA -5 on higher volume with midlin internals. All UP cept XOI, XMI, OEX.

Bonds down 10 yr yield +3bps 4.90, $ up vs 121.766y & down vs 1.3457E, gold up $667.9, WTI crude up $64.17

DJIA up 33 for 45; 46 record closes since Oct.; 24 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 40 for 56.

Over the last 3 weeks, some magic numbers with strong resistance... SOXX 500-505. it still stands...

All other indexes have pulled away from the magic numbers and made new highs.

Yesterday: "Another Shanghai surprise tonight, might get noticed." No surprises, next stop SP500 1545-1550, then retest of 1525-1530 before 1570-1575 run up.

This market just keeps kicking any and all bad news under the rug... a fluke Chicago PMI trumps national GDP heading for zero growth...

Unemployment worsens as construction spending continues to contract... layoffs in construction and service sectors are just commencing...

The main economic engine (housing) of the last 5 years is failing and there is no visible backup...

Energy stagflation rages on... 10 year yield at 4.90 highest since Aug 06... somethings gonna give if it heads for 5...

Henceforth this shall be referred to as a Tommy market.... This deaf, dumb and blind market, sure plays mean pinball....

Often wrong, but never in doubt, this is the Nattering Naybob and your not!

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