Market Soapbox Week Ending 07/06/07

MON, DJIA +127 on lower volume with pretty internals. All UP BIG. Bonds up, 10 yr yield -4 bps 4.99, $ clubbed vs 1.3624E & vs 122.435Y, WTI crude up $71.09, gold up 1.3% $659.2

TUE, followthrough, DJIA +42 on lower 1/2 day volume with nice internals. All UP cept DJUA, XAU. Bonds down 10 yr yield +5 bps 5.04, $ up vs 1.3608E & down vs 122.39Y, WTI crude up $71.23, gold down $655.4

WEN, Markets Closed

THU, wavy gravy, DJIA -11 on low volume with midlin internals. All UP cept DJTA, DJUA, XOI. Bonds PUNKED 10 yr yield +10bps 5.14, $ up vs 122.845y & vs 1.3602E, gold down $650.6, WTI crude up $71.81

FRI, DJIA +46 on low volume with nice internals. All UP cept DJUA. Bonds down 10 yr yield +4bps 5.18, $ up vs 123.334y & down vs 1.3628E, gold up $654.8, WTI crude up 1.4% $72.81

This week, DJIA +204, since 09/19/05 DJIA +3006. CRB commodities up 313.13 to 320.86

XAU up from 135.95 to 145 & gold up from $650.9 to $654.8. XOI up from 1409.92 to 1459.08 & WTI crude up from $70.68 to $72.81.

Volatility VIX down 16.23 to 14.72. Dollar index down from 81.90 to 81.42. $ up vs Yen 123.179 to 123.334 & down vs Euro 1.3542 to 1.3628.

This week bonds up BIG 30yr +15bps; 10yr +15bps, 5yr +16bps, 2yr +11bps, 6mo +7bps. 30 yr @ 5.27%; 10 yr @ 5.18; 5 yr @ 5.09; 2yr @ 4.98; 6 mo @ 5.00.

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.

6mo above 2 yr 06/25/07 - ???

Resistance: DJIA 13700; SP500 1540; NAZ 2700; NDX 2000
Support: DJIA 13430; SP500 1490; NAZ 2580; NDX 1910

Today $7B in Fed reanimation. NDX jumped from 1983 to 1988. SP500 1524 to 1532, DJUA hanging at 505, SOXX at 515 new 52 week high

Rising rates 10 yr at 5.18 & oil $73 are NOT good news. Next week, bad news? import & export prices, retail sales, Bank Of Canada rate & Options Unwind.

Until SP500 closes above 1550 for 2 days, we reserve judgment on an overall change in market direction.

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

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