Market Soapbox 09/06/05

Resistance: DJIA 10750; SP500 1250; Nasdaq 2200; NDX 1625
Support: DJIA 10250 ; SP500 1200 ; Nasdaq 2050; NDX 1535

European markets up & Asian markets down. Dollar up vs. Yen/Euro , XAU & gold down, XOI & oil down, commodities up & bonds down.

Today's Soohey Pig Award goes to me for letting the pig have a quiet day in its poke.

Last week overall an up week, Mon & Wend looked good, but the market held firm the face of major negativity, $71 oil and Katrina. Today, the market roared in a broad based fashion with AUTHORITY.

Internals were pretty, transports, industrials, airlines, biotech, REITS, retailers and homebuilders up nicely, everything else in the green.

The ISM report consensus was pegged at 61.3 vs 60.5 from the prior report, it came in at a robust 65. Which by coincidence, oil fell to $65, energy, oil & gold bugs were flat or down.

Bonds slid as the dollar strengthened, the 10 year note yield went up to 4.08 and the gap between 5 & 10 year was 20 basis points.

The energy sector is weak, oil falling from $70.80 to $65 and bonds falling from 4.00 to 4.08, while the dollar rebounds from $1.25 vs the Euro & 108 vs the Yen.

Last Mon, Wend & today were sweet up days. The DJIA +140 today, and other major indices blew through upside resistence today on nice volume.

The major indices have been trending up since 08/29 & 08/30, the SOX and DJ Utilities have been headed up since 08/16, check the charts. The XOI started up on 08/18, but has hit a cross roads.

Tomorrow, options unwind starts, 5 yr note auction also, 10 yr note auction Thurs. Will dealer money headed into the bond market, force the stock market down again? Is this a head fake?

Are we seeing a major pump, before a dump, or has the market turned the corner. This question and more will be answered tomorrow, same Bat-time, same Bat-Blog.

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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