Market Soapbox 11/23/05

Resistance: DJIA 11000; SP500 1275; Nasdaq 2250; NDX 1700
Support: DJIA 10200 ; SP500 1175; Nasdaq 2000; NDX 1500

In our top story tonight, Generalissimo Francisco Franco is STILL dead.

In other news, weekly EIA checked in @ +354K crude vs est. +250K; +1.17M distillates vs est + 700K; +238K gasoline vs est. +1.0M. The 2 year note auction had indirect bidder participation of 41.4%, however demand and volume was lackluster leading the bond market down.

The report showed greater than expected builds in crude & distillates, and a build in gasoline. Immediately following the data, crude futures plunged 1%. This took the energy sector down, but spurred broad market gains.

Todays, SOOHEY, PIG, PIG award goes to me for letting the pig have a quiet day in its poke.

9 weeks ago, DJIA -270 breaking key support. 8 weeks ago, DJIA +148, lacking conviction. 7 weeks ago, DJIA -281 crashing down. 6 weeks ago, large swings DJIA -6. 5 weeks ago larger swings, DJIA -77. Five weeks of downturn totaling -486.

4 weeks ago, recovery begins with larger swings, DJIA +186. 3 weeks ago, broadbased gains DJIA +128. 2 weeks ago, DJIA +154. Last week, a slowing, DJIA +79. Four weeks of gains totaling DJIA +547.

Mon, DJIA +54 on decent internals with tepid volume. Tues, crude oil surged 1.5%, after the FOMC minutes release the market rebounded DJIA +51. Today, despite oil and energy pulling back, DJIA +45 on lower volume with decent internals. This week DJIA +150 , over the last 10 weeks DJIA +211.

Tech continued its rally without the semis.DJUA leading the way up, RUT & MID weak, SOX, DJTA, XAU & XOI down. CAC up, DAX up, FTSE up, Hang Seng up BIG & Nikkei 225 flat.

Dollar up vs. Euro & Yen, XAU & gold down, XOI & crude down @ 58.71, CRB commodities & bonds down. Contra trend: none.

Sectors: Airlines, Tech, Networking, Telecom, Financial, Securities Broker, Transports, Utilities & Banking up nicely. Gold Bugs, Energy, Natural Gas, Semi's, Commodity & Oil down.

Bonds down with the 10 year yield rising @ 4.48% & the 30 year @ 4.69. The 2 & 5 year gap @ 3 basis points; the 5 & 10 year gap @ 9 basis points; the 10 & 30 gap @ 21 basis points.

Looking ahead at potential market influences, Nov 28: Existing Home Sales, Nov 29: Durable Orders, New Home Sales, Consumer Confidence, Nov 30: Chain Deflator, GDP, Chicago PMI, Crude Inventories, Fed Beige Book, Dec 1: Truck & Auto Sales, Initial Claims, Personal Income & Spending, Construction Spending, ISM Index, Dec 2: Non Farm Payrolls & Unemployment.

The market uptrend began on 10/13 and is still intact. Equities have risen 15 of the last 19 sessions. Today, the market disconnected from oil, it needs to if this rally is going to be sustained.

Intraday highs: DJIA 10974, SP500 1270, NDX 1704, NAZ 2269. Energy was down, semi's fell late day along with small & mid caps. I suspect before heading up higher, we may be at near term resistence and due for some profit taking and a small consolidation.

Tomorrow, beware of the revenge of the gobbler, take the Broncos & Falcons and have a Happy Thanksgiving.

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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