Market Soapbox 05/15/07

TUE, split tape, DJIA +37 on average volume with poor internals. All DOWN cept DJTA, DJUA, XMI, XAU.

Bonds down 10 yr yield +2 bps 4.71, $ down vs 120.24Y & vs 1.3594E, WTI crude up 1.1% $63.17, gold up $674.5.

Moral Majority founder Jerry Falwell dead at 73... speaking of dead...U.S. home prices tumbled 1.8% to a 2 year low in Q1.

Lower prices baited more suckers into a sinking ship as seasonally adjusted, Q1 home sales up 2.4% to an annualized 6.41M from 6.26M in Q4. However, the slump continues as Yoy sales fell 6.6%.

Q1 sales will probably be the highest of the year, the NAR said. Purchases of previously owned homes likely will fall 3.5 % in Q2.

U.S. foreclosure filings jumped 62% from a year earlier and the number of households falling behind on mortgages probably will climb further this year as home prices fall and lending standards rise.

Over the last two weeks, some magic numbers with strong resistance... RUT 830, SOXX 500-505, SP500 1510, NDX 1905. They stand...

Today, Triple Digit gain then drop and fade into close. SP500 1503 to 1514 to 1501. DJIA new record highs up 28 for 33.... and on a parallel with 1989 Nikkei 225: the DJIA is now 35 for 45....

SP500 1520-1530 is still the next target on short covering by FRI options expiration. Often wrong, but never in doubt, this is the Nattering Naybob and your not!

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