Market Soapbox Week Ending 06/15/07

MON, wavy gravy DJIA +1 on lower volume with midlin internals. All DOWN cept DJUA, SP500, XAU, XOI. Bonds down, 10 yr yield +2 bps 5.14, $ up vs 1.3354E & vs 121.795Y, WTI crude up 2% $65.97, gold up 1% $659

TUE, broadbased triple digit consolidation, DJIA -130 on average volume with disasterous internals. All DOWN, Bonds beat down like cheap congas 10 yr yield +16 bps 5.30, $ up vs 1.3303E & down vs 121.605Y, WTI crude down $65.16, gold down $651

WEN, triple digit bounce, DJIA +187 on below average volume with pretty internals. All UP BIG. Bonds up 10yr yield -9 bps 5.21, $ up vs 122.64y & down vs 1.3313E, WTI crude up 1% $66.26, gold up $652.7

THU, followthrough, DJIA +72 on below average volume with pretty internals. All UP. Bonds down 10 yr yield +1bps 5.22, $ up vs 122.921y & up vs 1.331E, gold up $655.9, WTI crude up 1.4% $67.65

FRI, followthrough, DJIA +86 on higher volume with pretty internals. All UP. Bonds up 10 yr yield -6bps 5.16, $ up vs 123.445y & down vs 1.3388E, gold up $658.7, WTI crude up $68

This week, DJIA +216, since 09/19/05 DJIA +3015. CRB commodities up from 307.51 to 319.30

XAU up to 140.77 from 135.23 & gold up from $650.30 to $658.7. XOI up to 1434.81 from 1356.57 & WTI crude up from $64.76 to $68.

Volatility VIX down 14.74 to 13.94. Dollar index up 82.79 from 82.66. $ up vs Yen 121.745 to 123.445 & vs Euro 1.337 to 1.3388.

This week bonds down 30 yr +4bps; 10 yr +4bps, 6mo -7bps. 30 yr @ 5.26%; 10 yr @ 5.16; 5 yr @ 5.09; 2yr @ 5.02; 6 mo @ 4.85.

Recent Inversions: 2yr above 10 yr 12/27/05 - 3/29/06; 06/08/06 - 02/22/07; 05/02/07 - 06/07/07; 2yr above 30 yr 02/09/06 - 3/29/06; 11/03/06- 03/01/07. 6mo above 10yr 06/02/06 -06/07/07; 6mo above 30yr 06/13/06 - 05/25/07

Resistance: DJIA 13700; SP500 1540; NAZ 2650; NDX 1955
Support: DJIA 13500; SP500 1505; NAZ 2575; NDX 1905

DJIA up 40 for 56; 48 record closes since Oct.; 26 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 47 for 67.

Yesterday $16B in Fed reanimation, today $11.5B had the zombie marching. Bonds rallied... the SP500 bouncing from 1522 to 1538 fading into close at 1532 on short covering.

Yesterday: "Today's market applauded rising PPI, tomorrow a standing O for CPI gone out of control??"

You betcha, its a "Tommy" market... that deaf dumb and blind market sure plays mean pinball...

Next week, our 1545-1550 target in sight, then retest of 1535-40. NDX & NAZ at multi year highs, we sense some resistance at NDX 1955.

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

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