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OI Technical Staff : 6/2/2006 9:59:59 PM

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Jeff Bailey : 6/2/2006 4:58:09 PM

Closing Internals found at this Link

Jeff Bailey : 6/2/2006 4:47:11 PM

Closing U.S. Market Watch found at this Link

Jane Fox : 6/2/2006 4:20:22 PM

Have a great weekend everyone.

Jane Fox : 6/2/2006 4:16:12 PM

Economic Reports for Monday June 5th.

10a.m. May ISM Non-Manufacturing Business Index. Consensus: 60. Previous: 63.

Jeff Bailey : 6/2/2006 4:12:34 PM

August Unleaded (hu06q) settled at an all-time high of $2.17

Jeff Bailey : 6/2/2006 3:43:52 PM

I don't see too many sellers willing to stick around on offers of 1,2,3-lettered stocks as we near the close.

Jane Fox : 6/2/2006 3:29:48 PM

NYSE MOST ACTIVE STOCKS: Q LU EWJ AMD GE

Jeff Bailey : 6/2/2006 3:22:00 PM

HUUUUUGE move in Treasuries today. That must be why there was such a hunger for "junk bonds" in recent sessions.

Jeff Bailey : 6/2/2006 3:20:32 PM

03:00 Internals found at this Link

Jeff Bailey : 6/2/2006 3:05:15 PM

03:00 Market Watch found at this Link

Jeff Bailey : 6/2/2006 3:01:45 PM

Current OPEN MM Profiles that I've made at this Link

Jeff Bailey : 6/2/2006 2:46:45 PM

Didn't get a chance to get a screen capture to see if it was put selling, or call buying though.

Jeff Bailey : 6/2/2006 2:35:58 PM

Good note Jane ... I noted "14.00" in this morning's Market Internals.

Jeff Bailey : 6/2/2006 2:29:43 PM

Bullish swing trade long alert for 1/2 position or 100 shares of Frontier Oil (FTO) $56.90 here, stop $53.50, target $61.00.

Jane Fox : 6/2/2006 2:25:30 PM

Link Link Link Link

Jane Fox : 6/2/2006 2:23:02 PM

These gyrations in $SPX, breadth and $VIX underscore how volatile the market has become. Surprisingly, index option traders are not acknowledging that this volatility could continue -- having allowed $VIX to tank as it has. Personally, we feel that a much more volatile atmosphere will persist, but only time will tell for sure.

Finally, the equity-only put-call ratios have not turned bullish, although they are high on their charts (Figures 2 and 3). Remember, though, that "high" in one year is not necessarily "high" in another (these ratios reached the 90 level during 2002). That's why we prefer to wait for them to roll over and begin to head downward before we declare them as a "buy." If these turn bullish, the current rally could develop into something more substantial. But so far they haven't.

In summary, we still fee that this market suffered some serious intermediate- or long-term damage in the heavy selling that took $SPX down from 1327 to 1245. We would expect to see that level retested, if not broken. Whether that happens immediately or a few weeks down the road, could depend on how the equity-only put-call ratios unfold. Right now, the market is no longer oversold, so anyone who bought on that basis should be lightening up and tightening stops.

Jane Fox : 6/2/2006 2:20:03 PM

McMillan's weekly commentary Last week we noted that the market was severely oversold and due for a rally -- but warned that any such rally was likely to be sharp, but short- lived. So far, the market has rallied every day since then, with one major exception: a nasty 185-point Dow decline this past Tuesday. The oversold conditions have largely abated now, and the market is about to run into more severe resistance (not to mention the fact that the seasonal buying that takes place around the beginning of the month is about to end). Therefore, we don't feel this rally has much more room to run, despite the fact that it has looked quite strong at times.

$SPX now sports a double bottom on its chart at 1245 -- those having occurred on the first day of this year and then again last week. That level, therefore, defines the major support level. This rally has overcome several resistance levels, most notably the one at 1280. However, it is now confronting the 1290 area, which has been both support and resistance at times this year (see Figure 1). More importantly, the declining 20-day moving average is at that level as well and that average often is the halting point for initial reflex rallies, such as the one we've had.

Market breadth has improved drastically. A week ago, we were seeing oversold conditions that hadn't been equaled for over a year. But now, breadth has returned to a neutral reading and, doesn't have the attractiveness that it did a week ago.

The volatility indices ($VIX and $VXO) have done a couple of round trips of their own -- registering oversold spikes and then buy signals a couple of times. In fact, late last week it appeared that $VIX had seen its highs, having fallen from above 19 to nearly 14. However, this past Tuesday -- when the Dow dropped 185 points -- $VIX rose by an enormous 4.40 points (its 10th largest one day percentage gain in its history) and closed at a new high. Since then, it has dropped precipitously, and is back below 15 again. (more to come)

Jeff Bailey : 6/2/2006 2:00:53 PM

Fed's Moskow (headlines)

Inflation Expectations "Crucial" To Econ

Core Inflation Requires "Close Monitoring"

Inflation At Upper End Of Comfort Zone

Would Like Core PCE At 1.5%

Must Watch Declining Labor, Resources Slack

Inflation Will "Likely Remain Contained"

Policy "Not Predetermined," Data Matters

Economic Fundamentals "Sound"

3%-3.5% Growth 06, 3% 2007 "Reasonable"

Pace Of Job Growth "Solid"

Housing, Energy Risks To Econ Outlook

House Prices Should Not Decline Nationwide

Home Price Decline Would Have "Modest" Impact

Jane Fox : 6/2/2006 1:47:57 PM

This is so cool Marco Andretti, who raced in the Indy 500 for the first time, was named the Indy 500 Rookie of the Year joining Mario Andretti, his grandfather and winner of the 1969 Indy 500, Michael Andretti, his father, and Jeff Andretti, his uncle, who were all also awarded the honor in their rookie races.

Jeff Bailey : 6/2/2006 1:45:24 PM

Remember when the U.S. steel industry was going to be "no more?" Yes, BS and WS didn't survive as poor management ran them into the ground. They couldn't adapt to change.

"Weak dollar" relative to several years ago has created the shift.

Jeff Bailey : 6/2/2006 1:39:51 PM

It does Jane ... that's for sure.

BOOM Link used to be a "pure play" on the gold mining industry. Way back in the 60's. When gold mining industry went in the tank, company took their technology to a different level, the steel and other metals industry.

Could become one of those "good to great" company's. Just like Nucor (NUE) $53.92 +1.01% Link

Jane Fox : 6/2/2006 1:37:14 PM

Moskow says inflation likely to remain contained

Signals about 2.9% y-on-y GDP growth for rest of '06 says inflation at upper end of his comfort zone

Repeats policy should be to bring inflation lower says economy operating close to potential

Moskow: 4.6% job rate indicates 'vibrant' labor market no weakening of fed's resolve to fight inflation

Moskow: job growth 'solid' despite ups and downs downplays signs of weakness in may job report

Jeff Bailey : 6/2/2006 1:27:32 PM

US Steel (X) $69.00 +0.87% ...

Dynamic Materials (BOOM) $32.94 +16.76% Link

Jane Fox : 6/2/2006 1:26:04 PM

Jeff, but puts the life back into Gold.

Jeff Bailey : 6/2/2006 1:23:36 PM

Weakness in the dollar just seems to "suck the life" out of equities doesn't it?

Jeff Bailey : 6/2/2006 1:23:00 PM

YM 5-minute interval chart at this Link ... Has the look that computers and traders alike were determined to sell the MONTHLY Pivot(s) May/June regardless of Non-farm, or "Iran news" and likely have the YM settle right back at WEEKLY Pivot.

In my "neutral zone" so not looking to put on a trade in here, as I will surely give back 20-points.

Get a bid back above 11,261, then maybe a chance to short with target back at 11,216-11,231.

Jeff Bailey : 6/2/2006 1:12:59 PM

01:00 Internals found at this Link

Jeff Bailey : 6/2/2006 1:02:09 PM

01:00 Market Watch at this Link

Jeff Bailey : 6/2/2006 12:56:42 PM

OK ... stay healthy!

Tab Gilles : 6/2/2006 12:56:17 PM

Jeff, didn't see any e-mail on MUR (up over $54 today). Have to go.... doctors appointment.

Jeff Bailey : 6/2/2006 12:55:02 PM

Tab ... did management forward my MUR Link note to you?

Jane Fox : 6/2/2006 12:52:57 PM

Egads Tab all of them are up today. What is with that?

Jeff Bailey : 6/2/2006 12:50:51 PM

$NASI 10-point box Link ... similar level as November (B).

Tab Gilles : 6/2/2006 12:50:48 PM

Jane, Last night on CNBC's "Mad Money", James Cramer brought up 5 stocks he called - Orphan Stocks- in which he asked vieewers to do their homework on. He wanted them to e-mail him and they'd pick the best stock to buy. The 5 picks are BOOM, ELRC, NTCT, LAYN & EGY> Here's a Candleglance chart... Link

Jeff Bailey : 6/2/2006 12:48:21 PM

It could be Tab! Starts to follow the NASDAQ NH/NL indications from earlier this week.

Tab Gilles : 6/2/2006 12:43:20 PM

As per 5/31/06 7:31am post....is this the reversal signal on the $NASI? Link Link Link Link

Jane Fox : 6/2/2006 12:43:20 PM

GTCB is a penny stock and I don't waste my charting time with them.

Jane Fox : 6/2/2006 12:42:49 PM

Biotherapeutics symbol is GTCB.

Jane Fox : 6/2/2006 12:41:08 PM

Here is BOOM on a daily/weekly/monthly chart. Bullish ahhh I don't know that I would buy it here. The weekly did break the 50EMA on its way down and is now finding resistance at 20EMA. The daily is also finding resistance at its 50EMA. It also has not even made the 50% retracement of its healthly decline from around the $42.00 level. Link

Jeff Bailey : 6/2/2006 12:40:43 PM

QQQQ $39.49 -0.62% ... market participants sold this bugger at $40.00 strike this morning didn't they?

Jane Fox : 6/2/2006 12:35:41 PM

Dynamic materials' (BOOM) shares surge 15% to $32.47 on volume 3.3m vs daily avg. 877,200

BOOM up on JP Morgan initiation at overweight.

Jane Fox : 6/2/2006 12:34:01 PM

Biotherapeutics' (GTC) shares soar 85% to $1.80 on volume 7.2m vs daily average 476,000

GTC up on positive Atryn opinion in Europe

Jane Fox : 6/2/2006 12:32:22 PM

NYSE ADVANCERS OUTNUMBER DECLINERS 17 TO 14

NASDAQ DECLINERS OUTNUMBER ADVANCERS 4 TO 3

Jane Fox : 6/2/2006 12:31:26 PM

NASDAQ MOST ACTIVE STOCKS: MSFT INTC CSCO CIEN JDSU

Jane Fox : 6/2/2006 12:29:41 PM

Black box (BBOX)shares drop 18.3% to $44.04 on volume 1.17m vs daily average 110,500

q4 adjusted earns missed wall st. View

Shares top percentage decliners list on nasdaq

Recorded q4 charge related to misconduct in italy

Q4 adjusted earns 53c vs first call est. 75c

Italian unit overstated financial results

All involved employees terminated

Jane Fox : 6/2/2006 12:26:56 PM

TOWN SPORTS IPO OPENS AT $13.24, ABOVE $13 PRICE

Jeff Bailey : 6/2/2006 11:57:31 AM

Missed a relatively "low risk" short on the YM this morning at 11,300 didn't I?

Wonder if Keene got it?

Jeff Bailey : 6/2/2006 11:45:18 AM

Current OPEN MM Profiles that I've made at this Link

Jane Fox : 6/2/2006 11:43:16 AM

NYSE MOST ACTIVE STOCKS: Q F REV GE LU

Jeff Bailey : 6/2/2006 11:33:56 AM

Bullish swing trade long alert ... for 100 shares (risk managed $10K=full position) of Goldcorp (GG) $30.50 here, stop $29.50 to begin, target $33.60.

Jeff Bailey : 6/2/2006 11:29:26 AM

Goldcorp (GG) Option Montage at this Link ... Options "look expensive", but a buy on the stock at these levels ($30.50), then look for a bounce to say.... $31.80 .... then write the June $32.50 Call (GG-FZ) for say .... $1.10 ... has a trader in at $30.50 - $1.10 = $29.40 with an OBLIGATION to sell $32.50.

Thinking is that with dollar weakness, and August Gold Link nearing its bearish vertical count...

That GG Link a decent play on this pullback.

Jeff Bailey : 6/2/2006 11:17:20 AM

11:00 Internals found at this Link

Jeff Bailey : 6/2/2006 11:03:54 AM

11:00 Market Watch found at this Link

Jeff Bailey : 6/2/2006 11:00:17 AM

August Gold Futures (gc06q) $2-box scale from dorsey/wright at this Link (more after 11:00)

Jeff Bailey : 6/2/2006 10:44:19 AM

Continuous Gold ($GOLD) $2-box scale Link

Jeff Bailey : 6/2/2006 10:42:50 AM

Buy...run/bounce...write covered call idea (alert) ... thought about this last night, but decided to make a clean break of things in GG this morning at $30.45.

Could have sold all but 100 shares, or kept roughly 1/3 of full position in GG.

Dollar weakness should at least have GG firming, and running higher into next week.

GG call options still look very expensive to be buying and I think a swing trader better off to position in underlying shares, then look to sell these premiums from time-to-time.

Jane Fox : 6/2/2006 10:34:17 AM

WASHINGTON (MarketWatch) -- New orders for U.S.-made factory goods dropped 1.8% in April, led by a decline in demand for construction and mining machinery and for aircraft parts, the Commerce Department reported Friday. It was the largest decline in factory orders in four months and follows a revised 4.0% gain in March.

Orders for durable goods fell a revised 4.4% compared to a previously estimated drop of 4.8%. Orders for nondurable goods rose 1.2%. Shipments of factory goods were flat in April after rising 1.0% in March.

The figures are not adjusted for price changes.

Jane Fox : 6/2/2006 10:32:10 AM

MARCH FACTORY ORDERS REVISED TO 4.0% VS. 4.2%

APRIL FACTORY INVENTORY-SALES RATIO RISES TO 1.17

APRIL FACTORY INVENTORIES RISE 0.7%

APRIL CORE CAPITAL GOODS ORDERS FALL 1.7%

APRIL FACTORY SHIPMENTS FLAT

APRIL NONDURABLE GOODS ORDERS RISE 1.2%

APRIL FACTORY ORDERS FALL 1.8%

April factory orders fall 1.8% -

Jane Fox : 6/2/2006 10:14:11 AM

VIENNA, Austria (AP) -- The United States warned Iran it will not have much time to respond once it is offered an international package of rewards to encourage it to suspend uranium enrichment, suggesting that the window could soon close and be replaced by penalties.

"It really needs to be within weeks," U.S. Secretary of State Condoleezza Rice told NBC's "Today" show, referring to the six-power package of perks or penalties aimed at halting Iran's enrichment activities.

In separate comments on National Public Radio, Rice suggested she was ready to meet her Iranian counterpart, Manouchehr Mottaki, if Tehran agreed to suspend the activity that can be used to make nuclear arms and negotiate the details of the deal.

Jeff Bailey : 6/2/2006 10:05:47 AM

I need to shut down computer (again). Will be back.

Jeff Bailey : 6/2/2006 10:04:57 AM

10:00 Market Watch found at this Link

Jane Fox : 6/2/2006 9:49:31 AM

NYSE ADVANCERS OUTNUMBER DECLINERS 19 TO 5

NASDAQ ADVANCERS OUTNUMBER DECLINERS 17 TO 6

Jeff Bailey : 6/2/2006 9:42:30 AM

Bullish swing trade stop alert for Goldcorp (GG) $30.50

Jeff Bailey : 6/2/2006 9:31:50 AM

Goldcorp (GG) $30.69 +1.95% ...

Jeff Bailey : 6/2/2006 9:24:47 AM

July Fed Fund Futures (ff06n) whipped higher to 94.89 .... 40% probability of 25 bp hike later this month.

Jeff Bailey : 6/2/2006 9:21:15 AM

Goldcorp (GG) alert $30.75 pre-market. ... Let's cancel bullish target of $30.50 and do this.

Place a stop at $30.50.

Jane Fox : 6/2/2006 8:50:25 AM

That jobs report was about as good as it could get. Unemployment falling yet eases worries about inflation. WE should have a bullish day in the markets today.

Jane Fox : 6/2/2006 8:49:01 AM

Dateline WSJ U.S. employment grew much less than expected in May, and a key wage indicator edged up only slightly.

While the unemployment rate still fell to its lowest level in almost five years, the sharp slowdown in monthly jobs growth and hourly earnings could ease inflationary worries about the U.S. economy.

Nonfarm payrolls grew 75,000 last month -- the smallest gain since October, when hiring practically stalled as companies were jolted by fallout from the Gulf Coast hurricanes -- after climbing 126,000 in April and 175,000 in March, the Labor Department said Friday. Previous estimates showed a 138,000-job increase in April and a 200,000 gain in March.

The unemployment rate still fell a tenth of a percentage point last month to 4.6%, its lowest since July 2001. The April jobless rate was left unchanged at 4.7%.

Average hourly earnings rose only 1 cent last month to $16.62. That 0.1% monthly increase compared with a 0.6% rise in April. Compared with a year earlier, May hourly earnings were up 3.7%.

The jobs growth and earnings data in the Labor Department report were below Wall Street Expectations. The median estimate of 23 economists polled by Dow Jones Newswires and CNBC had indicated May would show a 180,000 payroll jobs increase, a 4.7% unemployment rate and a 0.2% gain in average hourly earnings.

Friday's report will be the last monthly Labor Department jobs data before the Federal Reserve's next monetary policy-making meeting on June 28-29, though other key economic data are due in the interim. The central bank's Federal Open Market Committee is thought to be relying increasingly on incoming economic data to decide when to pause or stop its nearly two-year credit-tightening cycle

Jane Fox : 6/2/2006 8:35:24 AM

10-YEAR YIELD FALLS SHARPLY AFTER JOBS DATA

Jane Fox : 6/2/2006 8:34:34 AM

May average workweek falls to 33.8 hours

May average hourly earnings up 0.1%

May factory jobs down 14,000; services up 85,000

May retail jobs down 27,000

April nonfarm payrolls up rev 126,000 vs 138,000 prev

May unemployment rate lowest since july 2001

May unemployment rate 4.6% vs 4.7% in april

May payroll gain smallest since oct. 2005

May nonfarm payrolls up 75,000 vs 174,000 expected

May nonfarm payrolls up 75,000; jobless rate 4.6% -

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