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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (7212)	10/5/2005 11:08:18 AM
From: John Pitera	Respond to of 33421

NASD and SPX daily charts have shown very negative price action the last two days as they have sold off below their 50 DMA's after rally back to test their respective 50 DMA's over the past 7 or 8 sessions. BTK Index Broke made a huge reversal the last two days, energy stocks that had been in uptrends like XOM and BR have displayed nasty bearish price break downs. I don't like the negative trading and large sell off in XOM since it made a new all time price high on Sept 22nd. I think the reason that XOM is selling off so much is that the market expects a price earnings multiple contraction to occur due to the 10 year note yield going up in yield ( down in price). Message 21720607 Ben, I sent these comments to Jeff Thomas last Thursday afternoon. It looks like the US stock market has begun it’s next leg down in price. The NASD comp collapsed through it’s 50 DMA and looks very negative the BTK index Looks to have topped today. The BKX index looks very bad. XOM looks like it’s getting ready to break out to an all time high. John

To: John Pitera who wrote (7212)	10/5/2005 11:32:41 AM
From: All Mtn Ski	Respond to of 33421

Thanks for the article John. About time the spreads widened, could we finally be seeing that move to higher rates along the yield curve? Something that should have happened much earlier in the cycle, IMHO, in a "normal" economic recovery. Higher energy costs are taking away the consumer's incremental disposable dollar, coupled with higher interest rate costs, raising of minimum payments on credit cards, rising mortgage costs on those ARM and I/O loans, no wonder the savings rate is essentially zero and consumer confidence fell off a cliff on that last reading. Forces are coalescing for a nasty endgame for the stock market, IMHO. A-M-S