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OI Technical Staff : 6/1/2007 9:59:59 PM

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Jeff Bailey : 6/1/2007 8:33:05 PM

Closing U.S. Market Watch found at this Link

Jeff Bailey : 6/1/2007 8:30:48 PM

Closing Internals found at this Link

Keene Little : 6/1/2007 6:55:19 PM

Monday's pivot tables: Link and Link

Jeff Bailey : 6/1/2007 4:27:59 PM

Dynamic Materials (BOOM) $36.75 +1.37% ... does close above $36.41.

Jeff Bailey : 6/1/2007 3:59:42 PM

OLN $20.42 ... VIX.X 12.88

Jeff Bailey : 6/1/2007 3:59:12 PM

Swing trade bullish call alert ... for one (1) of the Olin OLN Jan $20 Calls (YSO-AD) at the offer of $2.05. No stop for now, target $28.00.

Keene Little : 6/1/2007 3:58:55 PM

I say, somewhat in jest, that I'm getting tired of looking for a top but it's important to keep in mind that the ascending wedge patterns that I think we're in means a top could occur at any time and the way you'll know it for sure is with a hard down day. That's a heck of a time for me to come along and tell you we put in a high. I'd rather keep pointing out where a high could occur and let you decide how you want to play it (or not). We've seen enough hard declines follow what looked like a corrective pullback to keep us on our toes and not get complacent about it.

So it's possible this morning's high was the end of the run and Monday will see a steep sell off begin, and that's what I'm showing with the bearish wave count on the SPX 60-min chart: Link It takes a break below 1528 to say something more bearish is happening. Until that happens stay on the long side. I'm assuming for now that we'll get a little more of a sideways/down correction Monday morning before heading higher again.

For the bullish count I like the Fib area around 1549 for the top of the next leg up to then be followed by a larger pullback into the end of next week for the ol' head fake before running it higher into opex, with an upside target near 1566 as per the daily chart I showed earlier, and up against the tren dline along the highs since April.

Jeff Bailey : 6/1/2007 3:53:47 PM

Swing trade covered call close it out alert for the OLN-FD at the offer of $0.80. This order kills $0.70 order from 02:51:12.

OLN $20.40 +0.79%

Keene Little : 6/1/2007 3:24:42 PM

The 15-min chart for SPX looks the same today as it did yesterday--pop higher in the morning followed by a slow choppy bleed off the rest of the day. If the pattern holds then we should see a resolution higher again on Monday. Link

Jeff Bailey : 6/1/2007 3:17:18 PM

03:00 Internals found at this Link

Keene Little : 6/1/2007 3:14:49 PM

No surprisem, there's not much going on today. The market has just been slowly pulling back after this morning's spike up. Looks like a vaguely familiar pattern actually (wry smile). It's a good day to clean up my charts and get them updated anyway. Time to look at SPX. The weekly chart shows the potential for a top to the rally today but it's shown that possibility at each high for a while now (can you tell I'm getting tired of looking for a high? that should be a good contrarian indicator). Link

The top of a parallel up-channel from July 2006, along with the bearish divergence at the current high, says we should be looking for a high rather than a breakout to the north. But if SPX manages to push higher, say into opex, then I've got two longer term Fib projections pointing to 1563-1566 for a potential high. Two equal legs up from October 2002 is at 1562.80, and the 5th wave for the rally from October 2005 = 127.2% of the 1st wave at 1565.67. The 127% is the square root of 161.8% and is a common Fib projection (and the 78.6% retracement is the square root of 61.8%).

The daily chart shows similar potential with a Fib projection at 1566.25 which is based on the 5th wave in the run up from March equalling the 1st wave (and providing good correlation with the Fibs on the weekly chart): Link A rally up to that level is speculative at the moment because the short term wave pattern doesn't quite fit that yet and would need to rally a little higher first, pull back later in the week next week, and then another rally leg into opex. But be aware of that potential.

From a bearish perspective, it takes a break below 1510 to say something more bearish is happening and a break below 1491 would say we've seen the top.

Jeff Bailey : 6/1/2007 3:02:28 PM

03:00 Market Watch found at this Link

Jeff Bailey : 6/1/2007 2:51:44 PM

OLN $20.37 +0.64% ...

Jeff Bailey : 6/1/2007 2:51:12 PM

The OLN-FD are $0.65 x $0.80. Usually don't try and squeeze blood from the turnip, but stick a bid at $0.70 for the next 30-minutes.

Jeff Bailey : 6/1/2007 2:46:23 PM

Swing trade long exit alert for the remaining shares of Olin Corp. (OLN) at the bid of $20.40.

Jeff Bailey : 6/1/2007 2:40:16 PM

I've got an idea. What do you think about this ...

Let's cash out the remaining 100 share long on OLN. And close out the covered calls.

Then, let's keep bullish exposure to the stock, but LOWER our capital at risk and go long a call.

Jeff Bailey : 6/1/2007 2:22:05 PM

General Motors Corp. (GM) ... said Friday its car and light truck sales jumped 9.6% for May to 371,056 vehicles, including the impact of an extra selling day in the most recent month, or 5.4% on adjusted basis.

That's higher than many analysts had expected. Overall sales, which include heavy trucks, gained 8.8%.

Car sales rose 16% to 150,797 including the extra day, while its light truck sales rose 5.5%.

Sales in its Saturn brand, which ran a promotion over Memorial Day, led divisions with an unadjusted 75% increase.

Jeff Bailey : 6/1/2007 2:20:08 PM

Bear Stearns Ups Venezuela Sovereign Debt To "Marketperform"

Jeff Bailey : 6/1/2007 2:15:43 PM

Continuous Unleaded vs. Continuous Crude Oil ... 0.30 box chart Link

This 0.30 point box chart is about "neutral" of a box size as I can find.

The bullish support based on 0.30 has good credibility dating back to February.

This is a way to visualize the "crack spread" between unleaded and crude oil.

Refiners tend to LOVE a big margin (rising crack spread).

Jeff Bailey : 6/1/2007 2:06:40 PM

Valero (VLO) $76.08 +1.95% ... check out a 60-minute interval chart.

It's coiling like a snake that's about to strike.

Jeff Bailey : 6/1/2007 2:05:12 PM

Well ... you ready?

Yesterday I thought July Unleaded (rb07m) would find support at $2.14.

It needs to find resistance around here $2.27.

That's not a "bearish triangle" on the PnF chart shown yesterday. The "bearish triangle" needs 5-columns, not four.

Jane Fox : 6/1/2007 2:00:32 PM

Opps sorry no it didn't because the weekly charts are red and that would put it on the sidelines.

Jane Fox : 6/1/2007 1:59:59 PM

GM on the jtHMA charts gave a buy yesterday at 30.05. Link

Jeff Bailey : 6/1/2007 1:59:44 PM

Getting less and less impressed with the Imergent (IIG) $24.45 +2.30% bearish play.

Hold for now, but likely close out on ANY weakness Monday/Tuesday.

Jeff Bailey : 6/1/2007 1:57:49 PM

No conflict of interest when I disclose. ;)

Jeff Bailey : 6/1/2007 1:57:13 PM

Again ... Disclosing I currently do hold bullish position in GM. So you know my bias.

Jeff Bailey : 6/1/2007 1:55:51 PM

New bulls are welcome to 1/3 positions and follow my MM profiles if looking for a long.

Jeff Bailey : 6/1/2007 1:55:06 PM

GM $30.45 +1.53% ....

Jeff Bailey : 6/1/2007 1:54:43 PM

GM May Sales up 4.7% ... Link ... will be a lot more info comings. News buzzing regarding production changes.

Jeff Bailey : 6/1/2007 1:50:52 PM

GM's sales hitting the wires as I type ...

Jeff Bailey : 6/1/2007 1:50:17 PM

GM $30.15 +0.53% ... check out the volume on 5-minute interval.

Jeff Bailey : 6/1/2007 1:47:00 PM

Auto sales look to be relatively good.

Jeff Bailey : 6/1/2007 1:46:25 PM

TM $122.56 probing its rising 200-day SMA (122.59)

Jeff Bailey : 6/1/2007 1:45:37 PM

Toyota (TM) $122.56 +1.49% ... May U.S. Sales Story Link

Jane Fox : 6/1/2007 1:45:33 PM

Gold is making a bold move here but the $ is still not letting me take the bait. Link Link

Keene Little : 6/1/2007 1:43:23 PM

Taking a look through the mulitple time frames on NDX shows where we are and some possible scenarios of where we're going. Starting with the weekly chart you can see that price has been pressing (is slightly above currently) the trend line along the highs since December 2004. That trend line is currently at 1903 so on a weekly basis a close below it would be a sell signal after what could be an over-throw here: Link

If you look carefully at the move up from March you can count a 5-wave move (the red candles break apart each of the 3 legs up). This daily chart shows that move: Link You can see the bearish divergence on both MACD and RSI at the new highs since the end of April, which fits for a 5th wave in the move up from March. Bulls laugh at such things. It's hard to see with all the trend lines and price depictions but I show the possibility for price to top out here or after a down-up sequence with a final minor new high into opex (likely with continuing bearish divergences).

Now for the more bullish possibility that matches what I showed on the RUT daily chart earlier: Link If the parallel up-channel from March continues to hold, the bottom of which is near the trend line along the highs from January 2004 near 1905 (resistance now support?) then the dark green bullish wave count calls for a big rally through the summer. The final high by this projection would be about another 130 points higher into July. Yeeha if true. Stranger things have happened in the face of the bearish internals and indicators we currently have facing us.

NDX needs to break below 1900 for a bearish heads up (down) and below 1867 to completely negate that more bearish potential. In the meantime, assuming for the moment that we're closer to a top than that uber-bullish scenario, this 120-min chart shows the potential wave counts for a possible top here vs. a down-up sequence into opex: Link

And finally this 30-min chart show the last leg up on that 120-min chart and it needs a break below 1920 to tell us it's finished and that we're starting at least a pullback into next week. Until it does break down, the trend is clearly still up: Link

That's our roadmap. Now we let price tell us what's playing out next.

Jeff Bailey : 6/1/2007 1:39:54 PM

PnF bullish and double top buy signal. Bullish vertical count to $114. Sell signal would be generated at $56.

From $64, RISKING $8 for potential longer-term reward of $50.

That excellent risk/reward profile.

Jeff Bailey : 6/1/2007 1:37:46 PM

Homebuilding/lumber? Again... can't remember.

Jeff Bailey : 6/1/2007 1:37:04 PM

Temple Inland (TIN) alert! $64.00 +1.58% ... now I can't remember why I had an alert set here. New 52-weeker.

Jeff Bailey : 6/1/2007 1:29:11 PM

General Motors (GM) $29.97 -0.03% ...

Jeff Bailey : 6/1/2007 1:28:44 PM

GM's should be coming ... usually last.

Jeff Bailey : 6/1/2007 1:28:25 PM

Ford and Daimler's ... AP Story Link

Jeff Bailey : 6/1/2007 1:27:07 PM

Ford (F) $8.28 -0.71% ...

Jeff Bailey : 6/1/2007 1:26:40 PM

Ford's (F) May Auto Sales AP story Link

Jeff Bailey : 6/1/2007 1:25:11 PM

Sound's like TOL's latest observation ... "bright spots," but still weak broader.

Jeff Bailey : 6/1/2007 1:23:31 PM

Hovnanian (HOV) ... Earnings Press Release Link

Jeff Bailey : 6/1/2007 1:21:32 PM

01:00 Internals found at this Link

Jeff Bailey : 6/1/2007 1:12:07 PM

Hovnanian (HOV) $24.14 -4.43% ... CNBC saying something about them reporting earnings today. I'll try and look/post when I get a chance.

Jeff Bailey : 6/1/2007 1:11:12 PM

Last night I was talking with Jim about the homebuilders and them being rather bullish last couple of weeks, even as 10 and 30-year YIELDS rose. I was starting to think that the higher mortgage rates might have had home buyers deciding "I'd better by the house while its lower, as the rate starts to rise."

That thought being tested today.

Jeff Bailey : 6/1/2007 1:06:33 PM

01:00 Market Watch found at this Link

Jeff Bailey : 6/1/2007 1:05:57 PM

NVR $782.97 -1.76% ... still can't close the deal much above $835.

Jeff Bailey : 6/1/2007 1:04:32 PM

TOL's 50-day SMA is $28.85, but starting to curl down. Looking "dead money" near-term. (long and short)

Jeff Bailey : 6/1/2007 1:03:13 PM

Bullish swing trade call stop alert with TOL $28.90 -1.46% ... TOL-IF $1.85 bid.

Jeff Bailey : 6/1/2007 12:59:54 PM

Dynamic Materials (updated) daily interval bar chart Link

Lower right corner is new MONTHLY Pivot levels. Unless a WEEKLY or MONTHLY back in September, can't "explain" that high. Noting this months R1 of $37.72.

Jeff Bailey : 6/1/2007 12:29:03 PM

Monitoring BOOM $36.50 +0.68% ... this is a RUT.X component already.

Since 04/26/07 close of $37.11, stock has NOT been able to close above a 61.8% retracement of ($36.40).

Retracement from 4/26/06 close to 01/09/07 close.

Just like a "dynamic" day trader's retracement, a 61.8% is a pretty good test.

We give BOOM the benefit as the stock has treated us pretty well.

Keene Little : 6/1/2007 12:28:11 PM

Another thing to keep in mind for today and what it might mean heading into next week is that if the gap up opening today, with a higher high, is then followed by a lower close it will give us a bearish key reversal day. Just add it to the list of bearish signals we've been getting in this market (smirk), but usually on a Friday these can be a little more significant.

Jane Fox : 6/1/2007 12:26:14 PM

YA YM to new daily lows.

Jane Fox : 6/1/2007 12:25:54 PM

ER testing its PDH now. Link

Keene Little : 6/1/2007 12:24:33 PM

I'm back. I see NDX flirting with the flat line. It's pattern is very similar to the ones I've been posting for the RUT so I'll update its charts shortly. But a pullback into next week (or the start of a larger decline) is what I see next.

Jeff Bailey : 6/1/2007 12:24:06 PM

VIX.X 12.83 -1.68%

VXN.X 16.50 -2.13%

Jeff Bailey : 6/1/2007 12:23:07 PM

Option Traders! ... with the NEW MONTHLY Pivot Levels, utilize the VIX's to get a feel for OPTION PREMIUMS. From a scale of 11.34 to 15.46, my feeling is that OPTIONS are "mid-point" priced.

So, if buying calls/puts, you want to stay as CLOSE to the money as possible on calls (if a decline comes, premiums (VIX.X) should rise. For puts, in such a BULLISH market, RISK as LITTLE as possible, go OUT THE MONEY, and if a decline does come, the premium should RISE.

Jane Fox : 6/1/2007 12:20:33 PM

Too funny Jeff, I just stepped away for a minute and when I came I took a quick scan of the MM and saw your EBAY calls post. My first impression was you were buying Calls on the EBAY site :)

Jeff Bailey : 6/1/2007 12:18:25 PM

Jaha lands $20M from Deutsche Telecom, others Fortune Story Link

Jeff Bailey : 6/1/2007 12:15:56 PM

On the EBAY calls, I would not be purchasing July $35 Calls now, so "hold." Not certain I'd be buying the $32.50's either.

I keep seeing some news items about some type of new competing technology from "Jaha" that seems to weigh on EBAY and its "Skype" for VoIP.

Jane Fox : 6/1/2007 12:11:01 PM

NQ seems to be winning the race to test ON lows.

Jane Fox : 6/1/2007 12:10:34 PM

Here are your ON ranges. Link

Jeff Bailey : 6/1/2007 12:09:28 PM

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

Jane Fox : 6/1/2007 12:08:45 PM

Your PDRs make it pretty clear which markets are the strongest and the weakest. I still have my DIA puts BTW. Stubborn ya I know. Link

Jane Fox : 6/1/2007 11:59:34 AM

You could also bail the long if the 60 jtHMA turns back red but I like to give it a little more breathing room.

Jane Fox : 6/1/2007 11:58:13 AM

Here is one that may not turn out. Long MRK at 52.95 with a stop just under the swing low at 51.96. Link

Jeff Bailey : 6/1/2007 11:57:13 AM

News Corp. (NWS) $24.30 +2.83% ... can't figure out why it bids. Only explanation I can think of is that market participants feel their won't be a bidding war.

Jeff Bailey : 6/1/2007 11:56:11 AM

That was the "last shot" for me on DJ. IF we could have gotten target, then the DJ-RI were "free."

We didn't, and lost an additional $0.20/share on 164 shares ($-32.80 + commissions)

Every so often on my INET Level II, down at the bottom I'll see $60.00, but then it fills right back up on the bid side.

Jane Fox : 6/1/2007 11:54:59 AM

HD long at 38.56. Link

Keene Little : 6/1/2007 11:53:16 AM

Stepping away for about 30 minutes.

Jane Fox : 6/1/2007 11:52:56 AM

jtHMA would have got you long DD at 51.22. Link

Jeff Bailey : 6/1/2007 11:51:12 AM

Day trade short stop alert ... for Dow Jones (DJ) $61.10

Jeff Bailey : 6/1/2007 11:50:39 AM

Forex's Global Economic data released so far today at this Link

Jane Fox : 6/1/2007 11:47:46 AM

The jtHMA charts would have got you into a VLO long at 74.18. Link

Jane Fox : 6/1/2007 11:42:22 AM

I used these charts to go long AIG at 71.89 back on May 30th. Link

Jeff Bailey : 6/1/2007 11:41:52 AM

DJ ... day trader's chart update, now with INET Level II Link

Jane Fox : 6/1/2007 11:41:07 AM

Here is an excellent example as to how I use the jtHMA charts. Back on May 25th the NAZ composite's daily and 120 minute jtHMA were red but the 60 minute had just turned green that is a buy the dip because both the monthly and weekly are green. "IF" you did not have a bias and you took the NAZ long (with whatever instrument you use to trade the NAZ) you would be well into profit now. Link

Jane Fox : 6/1/2007 11:33:45 AM

Smith Open system has the YM at +4, ES at +10 but just about to change to a +4 and ER at +10. Link

Keene Little : 6/1/2007 11:27:36 AM

After this morning's bounce in the RUT I tweaked the 120-min chart that I showed last night because it shows a little higher upside potential into opex and I know many of you are watching this one carefully with your short calls (in bear call spreads). This morning's high was 22 cents shy of tagging the 856.61 level for two equal legs up from May 16th. In the bullish wave count I'm calling this high the 3rd wave in its ascending wedge pattern (assuming for now that's what we have) and we may have seen the high for the day: Link

This pattern and wave count calls for a choppy pullback into next week and then a final rally into the end of opex week, topping out around 870 where the top of the ascending wedge meets the broken uptrend line from April 2006 through the January 2007 low. The bearish wave count calls the current high the end of the move up and down we go. It will take a break below 821 to confirm the bearish count.

Jane Fox : 6/1/2007 11:22:15 AM

Here is the DAX cash market. Getting just a tad overdone me thinks. Link

Jane Fox : 6/1/2007 11:20:58 AM

My goodness gracious look at the DAX today. This is certainly not telling us we are headed for a correction. Link

Jeff Bailey : 6/1/2007 11:18:44 AM

11:00 Internals found at this Link

Jane Fox : 6/1/2007 11:18:40 AM

VIX climbing and the AD volume climbing as well is telling me the markets will move sideways until one or the other exerts enough pressure on the other and brings it in line. That may not happen today and we may just get a sideways move for the rest of the day.

At least you have a way of knowing we are into choppy markets though. Link

Jeff Bailey : 6/1/2007 11:03:03 AM

11:00 Market Watch found at this Link

Jeff Bailey : 6/1/2007 10:57:48 AM

Day trade lower stop alert for DJ $60.52 +13.52% to $61.10.

Updated day trader's chart, now slapping a "dynamic" to utilize its 61.8% as a trailing stop. Link

Keene Little : 6/1/2007 10:49:44 AM

I haven't looked at GOOG in a little while and now that it's rallied the past two weeks I thought it would be worth updating its charts. Starting with the weekly view you can see what looks like an ascending wedge on that one too since its January 2006 high, with the bearish divergences to go with it: Link

I'm showing a potential wave count for the wedge that calls for one more high to near 540 to finish off the pattern. As I also show, for the slightly more bullish count, we could get another down-up sequence in the wedge that takes us into the fall. Unfortunately this doesn't help us much and the daily chart is not much better: Link

But the daily chart shows potential resistance near 522. The November and January highs coincide with the Fib projection at 521.91 for two equal legs up from the May low. It would be the first place I'd consider shorting GOOG with a relatively tight stop just above in case it rallies to the upper trend line near 540.

Keene Little : 6/1/2007 10:34:01 AM

Well, no gap n crap so now it's a matter of figuring out where resistance might be. Since I was looking at the RUT charts I'll stick with those for a bit longer here. The move up from May 24th should be a corrective wave count and so far it looks good as an a-b-c-x-a-b-c wave count so I'm looking for the Fib relationships in the move. This chart is filled with Fibs and makes it a little confusing to look at but essentially it's showing me that the 860 area (859-861) is important: Link

A 162% projection from the previous move down to the low on the 24th is at 861.18. The 2nd a-b-c move up is 162% of the 1st a-b-c move at 859.17. The 2nd a-b-c move has equality between its two up legs at 861.42. So if the RUT rallies up to that level that's where I'd be interested in shorting it, but it may not get there until the end of the day. If it breaks down from here then watch the bottom of the up-channel, currently near yesterday's low, for support or a break.

Jeff Bailey : 6/1/2007 10:32:28 AM

Toll Brothers (TOL) $29.05 -0.95% ... needs buyers.

MONTHLY Pivot $29.37.

Jeff Bailey : 6/1/2007 10:29:12 AM

DJ $60.68 +13.82% ... with lower 5-MRT Link

Jeff Bailey : 6/1/2007 10:20:30 AM

Day traders of DJ short. I'm taking a 5-MRT from the first 2 5-minute bars. Stock was a delayed open and we didn't get a full 5-minute bar. So... RED #0 at $61.49, with "fit" of 19.1% and RED #1 at $69.90. Red #2 $60.31, Red #3 $59.95 and Red #4 $59.58.

Jeff Bailey : 6/1/2007 10:16:25 AM

Day trade short alert for shares of Dow Jones (DJ) $60.90 +14.29% here. Stop $61.50, target $59.60.

Jeff Bailey : 6/1/2007 10:09:24 AM

Bullish swing trade long alert for 1/4 position (200 shares for $10k=full) of Advanced Micro Devices (AMD) at the offer of $14.58. Stop goes $13.80, target $17.00.

Jeff Bailey : 6/1/2007 10:02:39 AM

10:00 Market Watch found at this Link

Linda Piazza : 6/1/2007 9:58:54 AM

I'm just dropping back in for a moment to remind subscribers that the ISM, Michigan Sentiment and Pending Home Sales are due out in about a minute. Make a quick decision about holding over or not.

Jeff Bailey : 6/1/2007 9:53:18 AM

Correction Alert! ... for Dynamic Materials (BOOM) $36.71 +1.26% ... stop should be raised to $35.80 (previously typed $34.80 @ 9:39:50).

Jeff Bailey : 6/1/2007 9:39:50 AM

Bullish swing trade raise stop alert ... for shares of Dynamic Materials (BOOM) $36.75 +1.37% ... to $34.80.

Keene Little : 6/1/2007 9:37:48 AM

That RUT daily chart I posted is still not the latest one that is supposed to be with last night's post. Somehow my latest version didn't get saved before my QCharts crashed last night. Here's the correct one that shows the little red ascending wedge to match the one shown on the 120-min chart (and the much more bullish potential in the parallel up-channel. Link

Note that after this current leg up from May 24th it could be considered the last one within the ascending wedge and this morning's little rally could top it off. Unfortunately we won't know for sure until the previous low (821.28) is taken out. From a short term basis though I'd be careful about this early morning pop higher which may not hold.

Linda Piazza : 6/1/2007 9:32:31 AM

I'm far from being an economist or at all expert in the intermarket relationships of equities/bonds/commodities/currencies. However, there's been a correlation of the USD/JPY move and the equity move since last summer. I'm not going to make any predictions because I do not feel capable of doing so, but this is a chart I'm watching with particular interest today. Link

Jane Fox : 6/1/2007 9:17:36 AM


Keene Little : 6/1/2007 9:16:36 AM

As per the RUT 120-min chart I posted last night (below), it looks like we'll get the pop up this morning but watch for a possible gap n crap. My apologies on the daily chart that was supposed to show a parallel up-channel. This is the correct chart for the idea that I discussed in that post (11:01 PM): Link

Jane Fox : 6/1/2007 9:06:49 AM

Quick look at crude and I see there is not much to say about this market other than it is still in its trading range, albeit a wide trading range. Link

Jane Fox : 6/1/2007 9:05:08 AM

Alas the $ is still finding support from its December 2006 lows and us Goldbugs will have to wait a little bit more. Link

Jane Fox : 6/1/2007 9:03:12 AM

Goldbugs are getting excited about this move above the 50EMA and the fact that MACD is supporting the move. Of course we all have to watch the US $ before we will make our move. Link

Jane Fox : 6/1/2007 9:00:41 AM

That bearish MACD divergence shows up on the Wilshire 5000 charts as well. Link

Jane Fox : 6/1/2007 8:57:31 AM

I see that same bearish divergence on the DOW and was part of the reason I bot DIA puts yesterday. That and the shooting star made yesterday. I was only attempting to trade a move back to the lower trendline with these puts and was not expecting this market to turn bearish or anything like that - heaven forbid. Link

Jane Fox : 6/1/2007 8:53:10 AM

Keene and I had a discussion the other day about when a bearish MACD divergence is indeed not bearish but bullish. He correctly stated that if the MACD falls while price moves in a sideways pattern it is the one time when a bearish divergence is in reality bullish. However, I do not see that here. SPX's MACD reached a high on April 25th, 26th and so did price but since then price has not moved sideways it has continually made higher highs and lows. The MACD on the other hand has continually made lower highs and lows. This is your classic bearish MACD divergence. Link

Jane Fox : 6/1/2007 8:45:34 AM

We have a disconnect between Gold and the US$ overnight but these two will right themselves eventually. My us$ chart is on a 20 minute delay so it could be testing its overnight lows supporting Gold's rally by now. Crude however, is testing its overnight lows and that will put a dampening on the Gold rally, these two are connected but not as directly as the Gold/$.

In any case the DAX is in major rally mode and this is not looking good for the DIA puts I bought yesterday. Link

Jane Fox : 6/1/2007 8:38:47 AM

WASHINGTON (MarketWatch) - Core consumer price inflation increased just 0.1% in April, bringing the year-over-year increase down to 2%, just inside the Federal Reserve's target, the Commerce Department reported Friday.

It's the first time in 14 months that core prices have been inside the Fed's unofficial target zone of 1% to 2%. Core inflation peaked at 2.4% in February; it was 2.1% in March.

The deceleration in core inflation is welcome news at the Fed, but officials have stressed that they still believe inflation could accelerate again despite the recent improvements.

With the Fed on guard against inflation and brushing off the slump in the economy as temporary, financial markets are no longer expecting any rate cuts from the Fed this year.

Jane Fox : 6/1/2007 8:37:50 AM

Needless to say the markets liked the nonfarm payrolls report out at 8:30. Link

Jane Fox : 6/1/2007 8:32:47 AM

WASHINGTON (MarketWatch) - U.S. nonfarm payrolls increased by a better-than-expected 157,000 in May, the Labor Department reported Friday. The jobless rate held steady at 4.5%.

The 157,000 increase in payrolls was slightly above the 150,000 expected by economists surveyed by MarketWatch.

Many economists had trimmed their estimate for job growth after the ADP employment report estimated that U.S. private-sector jobs grew by 97,000 in May. The report, released Wednesday, suggested that the nation's nonfarm payrolls rose about 123,000 in May.

Jane Fox : 6/1/2007 8:31:56 AM

NEW YORK (MarketWatch) -- LDK Solar Co. Ltd. priced at the top of its range for its stock market debut Friday as the second Chinese solar company to go public in less than a month.

With the global warming debate illuminating the sector, LDK Solar Co. (LDK) raised $469 million by offering 17.38 million American depositary shares at $27 for trading Friday on the New York Stock Exchange.

The Xinyu City manufacturer of multi-crystalline solar wafers priced at the high end of its $25-$27 range with underwriters Morgan Stanley & Co. International plc and UBS AG.

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