Market Observations 11/28/08

Resistance: DJIA 8925 (3850DMA); SP500 950 (4500DMA); NAZ 1580 (5000DMA);NDX 1235 (4750DMA)

Support: DJIA 7475 (5100DMA); SP500 735 (6500DMA); NAZ 1290 (6500DMA); NDX 1020 (6500DMA)

SP500 887, dip to 881, rise to close 896. NDX 1193, gap down 1181, dip to 1171, rise to close 1186.

FRI: Geithner Treasury appointment bounces dead cat off SP500 741; a number not seen since 1997. Could there be a small Santa rally coming? Perhaps.

MON: biggest two day rally since 1987. Existing Home Sales Oct -3.1%; 33% below the 05 peak; Yoy median price -11.3%; the largest drop on record.

TUE: GDP-Prel. Q3 -0.5% Q3 PCE -3.7%; S&P/Case-Shiller Home Price Index Yoy -17.4%, largest decline on record.

WEN: Huge Durable Orders decline Oct -6.2% ex transport -4.4%; non defense capital goods -4%.

Personal Spending Oct -1%; the 5th consecutive decline; Mich Sentiment-Rev. Nov 55.3 vs 57.9; the lowest in 28 years.

Chicago PMI Nov 33.8 the lowest in 26 yrs; orders hit a 20 yr low; employment a 6 yr low; longest production lead time in 28 yrs

New Home Sales Oct -5.3% at 433K, the fewest in 17 years; -40% Yoy; -69% from peak; inventory 11.1 months, 5th highest on record.


THU: Thanksgiving Markets Closed

FRI: No rising sun.. Japanese Factory output -3.1%; consumer spending -3.8%; 8th straight decline; companies plan the sharpest production cuts in 35 years -6.4%.

The British government bails out RBS (Royal Bank Of Scotland) by taking a 58% stake.

Tresuries having their best month since1981. The 10 yr under 3% for the first time ever.

With all this "good" news who needs bad news? ..

Yet, a 5 day rally, the longest streak since May; the steepest SP climb since 1933 & biggest gain since 1974.

What in the hell are these ebullient idiots smoking? Get ready as a major reality check is coming soon and expect a name brand to deliver the "good" news.

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

Comments