Market Soapbox 06/27/07

WEN, a bounce, DJIA +90 onaverage volume with nice internals. All UP.

Bonds up 10yr yield -2 bps 5.08. $ down vs 122.645y & up vs 1.3442E, WTI crude up 1.7% $68.97, gold down $644.8

DJIA up 43 for 64; 48 record closes since Oct.; 26 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 50 for 75.

Monday: "bonds to continue rallying with the carry trade Yen reload... more housing bad news should push SP500 toward 1480 75 DMA."

Today $9B in Fed reanimation and a rally that stuck as NDX & SP500 hit a fresh bottom for support.

SP500 open 1492 fell to 1484, then up to close at 1506. DJUA rising to 494.

Today, bonds treading water as freshly printed Yen went to bond auction and recycled Yen went to US equities. FYI, the Yen gained BIG vs multiple currencies.

A sign of overseas unwinding in the carry trade as leveraged positions are being liquidated to pay off the original loans based in Yen.

With operation "Yen For Uncle" in full swing, we sense NDX 1955 as major resistance, failure at this level would not be pretty.

Yesterday: "One way or the other, somethings gotta give soon. Need a shove? Call the FED, whats is your FOMC statement?"

In John Houseman's voice: Hawkish Fed speak will pancake this market and runs counter to "best and vested interests"...

thus the Nattering One senses a script change...and they will read what they are told to...

as a slight shift of concern for future growth rather than inflation could light a roman candle under this dead man walkin.

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

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