Market Soapbox 06/18/07

MON, wavy gravy DJIA -27 on lower volume with lousy internals. All DOWN cept NDX, SOXX, XOI.

Bonds up, 10 yr yield -2 bps 5.14, $ down vs 1.3418E & up vs 123.72Y, WTI crude up $69.05, gold up $659.6

Euro at all time high vs Yen. DJIA up 40 for 57; 48 record closes since Oct.; 26 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 47 for 68.

Today only $5.25 B in Fed reanimation; the NAHB/Wells Fargo Housing Index down to 28, a 16 year low. How low can it go? The bottom is not yet in sight....

Friday: "Next week, 1545-1550 in sight, then retest of 1535-40. NDX & NAZ at multi year highs, we sense some resistance at NDX 1955."

Today NDX testing 1948, the SP500 bouncing from 1532 to 1535 fading into close at 1531.

Oil testing $70 again, bonds getting the dead cat bounce, with more downside and higher rates to come.

Tomorrow Housing Starts & Permits, more bad news indeed and there is the slightest hint of consolidation in the air.

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

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