Market Soapbox Week Ending 10/26/07

MON, bounce, DJIA +45 on average volume with OK internals. All UP cept XAU, XOI. Bonds down 10 yr yield +2 bps 4.41, $ up vs 1.4172E & down vs 114.38y, WTI crude down 1% $86.02, gold down 1% $760

TUE, followthorough, DJIA +118 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

WEN, wavy gravy, DJIA -1 on average volume with ugly internals. All DOWN cept DJUA, XMI, XAU, XOI. Bonds up BIG 10 yr yield -5bps 4.34, $ down vs 1.4267E & vs 114.215y, WTI crude up 2.3% $87.24, gold up $765.6

THU, wavy gravy, DJIA -4 on average volume with ugly internals. All DOWN cept DJUA, NYA, XMI, XAU, XOI. Bonds down 10 yr yield +1bps 4.35, $ down vs 1.4317E & vs 114.03Y, WTI crude up 3.8% $90.46, gold up $771

FRI, upsurge, DJIA +135 on average volume with nice internals. All UP cept SOXX. Bonds down 10 yr yield +5bps 4.40, $ up vs 114.31y & down vs 1.4393E, gold up 2% $787.5, WTI crude up 1.5% $91.86

This week, DJIA +293, since 09/19/05 DJIA +3205. CRB commodities up 340.11 tp 345.87

XAU up 173.90 to 182.31 & gold up 768.4 to 787.5 XOI up 1456.95 to 1506.41 & WTI crude up 88.6 to 91.86

Volatility VIX down 22.96 to 19.57. Dollar index down 77.34 to 77 $ down vs Yen 114.515 to 114.31 & vs Euro 1.4302 to 1.4393

This week bonds FLAT. 30yr 0bps; 10yr +1bps, 5yr +2bps, 2yr -1bps, 6mo -1bps. 30 yr @ 4.69%; 10 yr @ 4.40; 5 yr @ 4.05; 2yr @ 3.77; 6 mo @ 4.04.

Resistance: DJIA 13900; SP500 1535; NAZ 2835; NDX 2205
Support: DJIA 13580; SP500 1500; NAZ 2750; NDX 2140

Yesterday: "SOXX -2% slammed again." SOXX still falling.

NDX gapped up 2161 to 2200, rising to 2203, fall to 2174, rise to close at magic number 2194.

SP500 opened 1514, gapping up to 1522, rise to close 1535. NDX topped at 2195 for the 4th time.

The market survived dismal financial house and economic reports. Tech stocks offset write downs and Countrywide.

Moody's Investors Service cut the ratings of collateralized debt obligations tied to $33 billion of subprime mortgage securities that were downgraded this month.

At least $7 billion of AAA securities were either downgraded or put on watch today, according to a Bloomberg tally.

We expect a rise to 2250-60 NDX in anticipation of a Oct 31st rate cut. What will the Fed do? And how will the market react?

Often wrong, but never in doubt, this is the Nattering Naybob and you're not!

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