Market Soapbox 05/30/07

WEN, triple digit jump, DJIA +112 on average volume with sterling internals. All UP cept SOXX.

Bonds up 10yr yield -2bps 4.87, $ down vs 121.555y & up vs 1.3428E, WTI crude up $63.35, gold down $660.30

New all time high DJIA up 33 for 44; 46 record closes since Oct.; 24 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 40 for 55.

Yesterday: "Near term we could head down to 1475 or head up to 1545 on the way to 1575. My sense is this overliquified market will keep shrugging off bad news."

Over the last 3 weeks, some magic numbers with strong resistance... SOXX 500-505. it still stands...

SP500 bursting from 1518 to close at new all time high 1530, making another run at 1533.

Yesterday: "Pay heed to the interest rates, rising 30 basis points in the short term as equities keep performing, demand for bonds is waning."

Today $13B 5 year note auction 2.60 bid to cover ratio, higher than last auction at 2.29.

However, indirect bidders fell to 19.5% from last auctions 38.7%, and last years average of 29.2%.

China Shanghai fell 6.5% last night, the market shrugged it off. Another Shanghai surprise tonight, might get noticed.

Often wrong, but never in doubt, this is the Nattering Naybob and your not!

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