Market Soapbox 10/10/05
Resistance: DJIA 10750; SP500 1250; Nasdaq 2200; NDX 1625
Support: DJIA 10250 ; SP500 1200 ; Nasdaq 2050; NDX 1535
Today's SOOHEY PIG PIG award goes to Delphi for attempting to retain their existing management by proposing to pay their executives bonuses after filing for bankruptcy. WTF??? See today's Delphi post for further details on this insanity which should be outlawed. SOOHEY PIG PIG!!!
European & Asian markets up. Dollar up vs. Yen & Euro, XAU down & gold up, XOI & oil down, commodities up & bonds flat (bond market is closed). Contra trend: $ & gold & CRB up.
3 weeks ago, DJIA -270 on higher volume, DJIA plunged below all major DMA's, the rest sitting on 90DMA. 2 weeks ago, DJIA +148, up and down all week, lacking leadership & conviction. Last week, a harder fall down another step DJIA -281, over the last three weeks DJIA -403.
Today, another down day with pathetic Internals DJIA -54; SP500 -8.5; Nas -11. DJUA, RUT & XOI down big. The SOX was crushed -3.24% . Energy, Utilities, Reits, Cyclical, Commodities, Cyclicals, Oil, Oil Services, Network, Natural Gas, Airlines & Broadband beat down like drums.
Bond prices flat with the 10 year yield @ 4.37%. The 5 & 10 year gap is 6 basis points. The 30 year @ 4.56, the 10 & 30 gap is 19 basis points. The 2 and 5 year gap is 12 basis points.
Energy sector and futures pullback continued as last week, crude oil -7%, unleaded gasoline -28%. Today crude -2% @ 60.55 midday to close at 61.40.
From 10/03/05 Market Soapbox when the SOX was at 483: "We think Jack's lederhosen (the SOX) are in for another let down and 472.50 looks good again for October expiration and maybe lower depending on whats really under Jill's dirndl".
And don't forget the upbeat SIA report that was issued that day, oh yeah Semis sales are gonna be up this year, so you better load up on Semi's, you bet buddy, heh-heh, sure thing. For now for some unbrazen self promotion...
The SOX is at 446, and oh man are those 472.50 October puts really in the money now, they were around $3.25, now at $14. I hope somebody listened, OINK, OINK, SOOHEY, PIG, PIG!!!!
The market is getting its ass pounded into the sand. Today we breached the support levels that last weeks late bounce saved us from, and we closed there, albeit not on higher volume. As Arnold said in True Lies: Get out, there's a hole in the bridge!
I now see no reason for the year end rally that everyone who is still in the market is hoping and praying for so they can liquidate. I fear we have not even seen the worst of this yet. If the pachyderms start heading for the exits, look out 10,000 is not far below.
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.
Support: DJIA 10250 ; SP500 1200 ; Nasdaq 2050; NDX 1535
Today's SOOHEY PIG PIG award goes to Delphi for attempting to retain their existing management by proposing to pay their executives bonuses after filing for bankruptcy. WTF??? See today's Delphi post for further details on this insanity which should be outlawed. SOOHEY PIG PIG!!!
European & Asian markets up. Dollar up vs. Yen & Euro, XAU down & gold up, XOI & oil down, commodities up & bonds flat (bond market is closed). Contra trend: $ & gold & CRB up.
3 weeks ago, DJIA -270 on higher volume, DJIA plunged below all major DMA's, the rest sitting on 90DMA. 2 weeks ago, DJIA +148, up and down all week, lacking leadership & conviction. Last week, a harder fall down another step DJIA -281, over the last three weeks DJIA -403.
Today, another down day with pathetic Internals DJIA -54; SP500 -8.5; Nas -11. DJUA, RUT & XOI down big. The SOX was crushed -3.24% . Energy, Utilities, Reits, Cyclical, Commodities, Cyclicals, Oil, Oil Services, Network, Natural Gas, Airlines & Broadband beat down like drums.
Bond prices flat with the 10 year yield @ 4.37%. The 5 & 10 year gap is 6 basis points. The 30 year @ 4.56, the 10 & 30 gap is 19 basis points. The 2 and 5 year gap is 12 basis points.
Energy sector and futures pullback continued as last week, crude oil -7%, unleaded gasoline -28%. Today crude -2% @ 60.55 midday to close at 61.40.
From 10/03/05 Market Soapbox when the SOX was at 483: "We think Jack's lederhosen (the SOX) are in for another let down and 472.50 looks good again for October expiration and maybe lower depending on whats really under Jill's dirndl".
And don't forget the upbeat SIA report that was issued that day, oh yeah Semis sales are gonna be up this year, so you better load up on Semi's, you bet buddy, heh-heh, sure thing. For now for some unbrazen self promotion...
The SOX is at 446, and oh man are those 472.50 October puts really in the money now, they were around $3.25, now at $14. I hope somebody listened, OINK, OINK, SOOHEY, PIG, PIG!!!!
The market is getting its ass pounded into the sand. Today we breached the support levels that last weeks late bounce saved us from, and we closed there, albeit not on higher volume. As Arnold said in True Lies: Get out, there's a hole in the bridge!
I now see no reason for the year end rally that everyone who is still in the market is hoping and praying for so they can liquidate. I fear we have not even seen the worst of this yet. If the pachyderms start heading for the exits, look out 10,000 is not far below.
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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