Market Soapbox 08/03/05

Resistance: DJIA 10750; SP500 1250; Nasdaq 2200; NDX 1625
Support: DJIA 10450 ; SP500 1210 ; Nasdaq 2100; NDX 1535

European markets down & Asian markets up. Dollar down (got pounded) vs. Yen/Euro , oil down, commodities, bonds & gold (way) up.

Today's Soohey Pig Pig!! Award goes to the petroleum cartels well oiled propaganda machine. King Fahd passed away August 1st since being hospitalized in late May. He has been in the hospital almost 2 months.

Crown Prince Abdullah who ascended the throne after Fahd's death has been in complete control of the Saudi kingdom since 1995 due to King Fahd's failing health. That's right Abdullah has been in charge for 10 YEARS.

After Fahd passed on Monday, the propaganda machine started chanting its mantra, "the change in leadership could signal instability in the oil markets". The man has been running the show for 10 YEARS, WHAT CHANGE???

The fish went for the chum and oil shot up to an all time high over $62 per barrel. Today, gasoline futures went up 1.6% to around $1.81 gallon, their highest levels ever. For shame, for shame, SOOHEY, PIG, PIG, PIG.

A gap down and reversal on typical low summer volume. Contra action: dollar & oil down & bonds up. In fact, most of todays soapbox is dedicated to CONTRA ACTION.

Today, the treasury confirmed what I have been saying since last year, the 30 year bond is back in January 06. This should drop current 10 year prices, today, bond prices went up and yields went down.

Yesterday, despite the imminent threat of rising rates, the Dow Jones Utilities Index closed at a new 4 1/2-year high.

I have been saying that perhaps shorts on the NDX and select tech stocks are in order, some industry reports indicate continued weakness in the chip sector, the SOX Philly Semiconductor Index hit a new 52 week high and the Nasdaq is at a 4 year high.

Despite better than expected economic reports and an economy that is kicking the crap out of everything else on the planet, and that includes China, the dollar slumped versus the Yen & Euro.

We said that Unocal would go to the Chinese (and it would have been a beautiful trojan horse). And despite having the highest bid and the only all cash bid, CNOOC confirmed exodus from the Unocal bidding war.

Can anyone tell me what the hell is going on out there? Or has everyone lost their friggin minds. Speaking of which, in Paris, France...

Paris is a wonderful and beautiful city, I would put it on a par with Venice or Florence, Italy. But the Champs Elysee in Paris has taken the number one spot on my list AWAY from Las Vegas.

That is the list of STUPID MONEY places. There is absolutely no apparent or valid reason for the irrational behaviour of the tourists on this street.

At least in Vegas, you know they are going to clip you in the Casinos. I have never witnessed more stupid money and stupid people in one place.

Not even the current real estate market can compete with the Champs Elysee. A true phenomenon. As such I am renaming it to the CHUMPS Elysee. Meanwhile, in the south of France...

Wim Duisenberg, the father of the euro and former head of the European Central Bank, was found dead in his swimming pool in the south of France yesterday. He was 70.

He was found unconscious in the pool at his home in the town of Faucon, and could not be resuscitated. An initial post-mortem examination showed he drowned after an unspecified heart problem.

The SP500 & Nasdaq are at 4 year highs, yesterday, the RUT closed at an all time high. AMEX Biotechnology Index (BTK) recently hit a 3 1/2 year high.

Semis went down today, LIKE THEY SHOULD. Gold Bugs went APE, up over 5% as did the XAU. Healthcare was another sector notably up. The RUT got pounded down, along with natural gas, airlines and transports.

We are really smelling a market peak these last few days. This slow slink up on extremly low volume is MOST suspicious.

We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.

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