Market Soapbox 01/10/08

THU, followthrough, DJIA +118 on higher volume with nice internals. All UP cept DJUA, SOXX, XOI.

Bonds down 10 yr yield +7bps 3.89, $ down vs 1.4802E & vs 109.36y, WTI down 1.5% $94.23, gold up 1.5% $894.6 TED spread down -5bps 1.17%.

Setting a new benchmark for real estate investors... Quietly in November, Lennar sold 11,000 properties in 8 states...

to Morgan Stanley Real Estate for 40 cents on the dollar. 60% less than the valuation two months prior.

Tues: "We sense a bounce around SP500 1373." Wen: "Perhaps some choppy up action?" Yes on both.

NDX gap down 1949 to 1930, fall to 1925, rise to 1968, fall to close 1953 SP500 gap down 1409 to 1406, fall to 1395, rise to 1429, fall to close 1420.

Support SP500 450DMA 1410, NDX 300DMA 1910. SP500 resistance 400DMA 1425 and NDX 200DMA 1990 are first tests.

The dead man walking had its spirits lifted in hopes of a BofA bailout of insolvent Countrywide. Will this and more Fed cuts stem the tide?

SP500 300 DMA 1460-1465 will be the real test. Often wrong, but never in doubt, this is the Nattering Naybob and you're not!

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