Market Soapbox 05/24/07

THU, broadbased consolidation, DJIA -85 on higher volume with ugly internals. All DOWN.

Bonds up10 yr yield -1bps 4.83, $ down vs 121.1y & up vs 1.3424E, gold down $654.7, WTI crude down $64.34

4 straight DJIA down, DJIA up 30 for 40; 45 record closes since Oct.; 23 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 37 for 52.

Last Friday we commented on how a higher Yuan would cause an unwind (proxy for yen) and this might take the markets down.

It has along with a higher Yen... overpriced tech & semis finally getting slapped silly... like they should.

Yesterday: "We suspect the market may not take kindly to existing & new home sales confirming further collapse in housing. This pullback may last until the end of May..."

Over the last 3 weeks, some magic numbers with strong resistance... SOXX 500-505. it still stands... and RUT 830, NDX 1905 are still magnets. SP500 touching 1505 intraday, catching support at 25 DMA.

Fortune cookie say... close below 1470 would signal big trouble in little China... Often wrong, but never in doubt, this is the Nattering Naybob and your not!

Comments