Market Soapbox 10/24/05 UPDATED

Resistance: DJIA 10350; SP500 1200; Nasdaq 2100; NDX 1575
Support: DJIA 10200 ; SP500 1175; Nasdaq 2000; NDX 1500

Our top story tonight, Generalissimo Francisco Franco is STILL dead.

In other news, "Helicopter Drop" Ben Bernanke picked as the new Fed head. $Ben's famous quote "the U.S. government has a technology, called a printing press that allows it to produce as many U.S. dollars as it wishes at essentially no cost."

All one need do is refer to $Ben's famous "
Helicopter Drop" speech for further details on the hyperinflation and debauching of the currency that potentially awaits us.

Today's SOOHEY PIG PIG award goes to me for letting that poor little pig have a quiet day in its poke.

European markets up BIG & Asian markets down. Dollar down vs. Yen & Euro, XAU up & gold down, XOI up & oil down, commodities & bonds down. Contra trend: None.

5 weeks ago, DJIA -270 on higher volume, plunging below all major DMA's. 4 weeks ago, DJIA +148, up and down all week, lacking conviction. 3 weeks ago, DJIA -281 crashing through long term resistance levels on higher volume. 2 weeks ago, large swings up & down DJIA -6. Last week larger herks & jerks, DJIA -77, over the last 5 weeks -486, giving up almost 100 points per week.

Today, out the gate big and then screaming upwards with AUTHORITY, DJIA +170, Naz +33, SP500 +20 on improved internals. DJTA, DJUA, MID, RUT, XAU & XOI all leading.

Sectors: Energy, materials, finance, broker dealer, transports, commodities, banking, industrials, utilities, cyclicals, biotech, retail, telecom, airlines, gold bugs, natural gas, oil, & reits all leading the way up into a sea of green. Semis up but weak.

Bond prices down with the 10 year yield rising @ 4.44%. The 5 & 10 year gap is 13 basis points. The 30 year @ 4.66, the 10 & 30 gap is 22 basis points. The 2 and 5 year gap is 6 basis points.

From last week, "we either break out to the upside and commence a year end rally or this elephant rolls over on its side and tanks big to the downside."

Today, crude oil fell 2.2% to stay below $60 and the SOX was up for a 4th straight day, two days to go!!!

The NDX & Nasdaq have also been edging up for 7 days. This is in contrast with the SP500 & DJIA. Tech usually foreshadows the DJIA & SP500 by 4-6 days.

With oil futures continuing to pull back, after the sector has been beaten down, I believe we may be witnessing a major market turn which should be evident by COB Wend.

If you have recently been catching falling knives, it might pay off by year end. Tomorrow and Wend, we need follow through on today's action, with conviction, or else!!

Keep it tween da ditches, 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 and Hey! Hey! Lets be careful out there...This is The Nattering Naybob and your NOT.

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