Market Soapbox 11/08/07

THU, followthrough, DJIA -34 on high volume with horrible internals. All DOWN BIG cept DJTA, DJUA, MID, RUT, XOI, XAU, NYA, XMI.

Bonds up 10 yr yield -4bps 4.27, $ down vs 1.4672E & vs 112.37y, WTI crude down 1% $95.46, gold up $837.5

NDX gap down 2169 to 2165, plunge through 25 & 50 DMA to 2066, bounce to close below 50 DMA 2106 .

SP500 open 1475, rise to 200 DMA 1482, plunge to 300 DMA 1450, bounce to close 1474.

Mon: "A substantial breech of the 1480 zone on a closing basis means 1445 awaits." Almost there hitting 1450 intraday low with extreme volatility, VIX over 29 intraday.

Tues: "over 50% of the gains in the NAZ are from 3 stocks: Apple, Google and Research in Motion."

A while back: "Watch Tech, when it collapses, it will lead the broader markets down."

High tech leaders have been slammed 2 days running as ebullient investors suddenly realize, there is no immunity to what is coming.

Or is there? PG flight to safety, up 2.25% at 70.98, if it falls below $67, watch out. Since 10/29, we have felt that the downside outweighs the upside.

On 10/29 we Nattered: (In Jan 01) the 2nd cut reinforced lower economic expectations and a weaker dollar, which sent the market into a 3 year tail spin.

Is history repeating itself? Is today's late bounce off SP500 300DMA and NDX 75DMA a dead cat bounce?

Today, Financial and Tech making up 36% of the SP500 got torched. Keep your eye on SP500 1450.

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

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