Market Soapbox 10/23/07

TUE, followthorough, DJIA +109 on average volume with nice internals.

All UP cept SOXX. Bonds up 10 yr yield -2 bps 4.39, $ down vs 1.4256E & up vs 114.881y, WTI crude down 1% $85.27, gold up $763.1

Yesterday: "The Yen gained big overnight hitting 113.5, as carry traders unwound and liquidated positions. Not a good sign."

Today the carry was back on reversed positions with the Yen weakening.

Yesterday: "Range bound with a downtrend, breech of NDX 2194 to upside or 2100 downside would confirm direction."

NDX is diverging from the SOXX and leading the broader market up as it violated 2194 to close at 2205.

NDX gapped up 2157 to 2181, fall to 2170, then rise to close at 2205. SP500 opened up 1506 to 1509, jumping to 1516, fall to 1503 then rise to close 1517.

We sense 2250-60 NDX as a limit. The caveat: bad existing & new home sales numbers, Microsoft or Countrywide may spook the market.

Will tech diverge from the broader market? Will the market follow tech? Often wrong, but never in doubt, this is the Nattering Naybob and you're not!

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