STOCK MARKET WATCH, Wednesday 29 March

GOLD/GOLD STOCKS

In our report for the Gold Mining Stock Indices on 2-10-05, we opined that the XAU could end up in the 121-123 zone, which is apparently what took place. Now it is a good time to re-assess the action in gold and gold stocks and see if any new conclusions can be drawn.

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CONCLUSION

Price has met its downside target and subsequently it has rallied above the declining tops line that defined the upper end of the declining channel. At the same time, most indicators are giving either neutral or bullish readings. Consequently, we have concluded that in all likelihood the three most likely scenarios going forward are the following:

1. The bullion will break above resistance and rally to 630. In that case it will pull the XAU along to new marginal highs. If the bullion closes above 590, and the XAU can close above 144 over the next 5-10 trading days, then the odds will be better than even in favor of scenario #1, and we ought to expect the XAU to test resistance in the 150-160 zone (see chart below).

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http://www.financialsense.com/Market/wrapup.htm

10:30 AM Crude Inventories 03/24
Briefing Forecast NA
Market Expects NA
Prior -1310K

10:32 AM ET 3/29/06 U.S. CRUDE SUPPLY UP 2.1 MLN BRLS LAST WK: ENERGY DEPT

10:32 AM ET 3/29/06 U.S. DISTILLATE SUPPLY DOWN 2.5 MLN BRLS: ENERGY DEPT

10:32 AM ET 3/29/06 U.S. GASOLINE SUPPLY DOWN 5.4 MLN BRLS: ENERGY DEPT

10:32 AM ET 3/29/06 GASOLINE STKS POST BIGGEST DROP SINCE AUG '03: ENERGY DEPT

SINGAPORE - Crude oil futures fell below $66 a barrel in Asian trading Wednesday as some traders took profits after prices surged the previous day on supply concerns.

Light, sweet crude for May delivery dropped 25 cents to $65.82 a barrel in electronic trading on the New York Mercantile Exchange. The contract on Tuesday jumped $1.91 to settle at $66.07 a barrel.

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Traders appeared to be selling contracts to lock in profits after Wednesday's surge, which was sparked by concerns that oil supplies would be strained during the upcoming U.S. summer driving season, when gasoline demand peaks.

"The market's been driven up on the concern that gasoline supply could fall leading to the heavy demand period of the summer driving season," said Mark Pervan, commodities analyst at Daiwa Securities in Melbourne, Australia.

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10:07 AM ET 3/29/06 MAY CRUDE FALLS 12C TO $65.95/BRL IN EARLY NY TRADING

10:07 AM ET 3/29/06 APRIL NATURAL GAS DOWN 1.9C TO $7.20/MLN BTUS

10:34 AM ET 3/29/06 APRIL UNLEADED GAS UP 2.4% AT 8-WK HIGH OF $1.93/GAL

10:34 AM ET 3/29/06 MAY CRUDE UP 26C AT $66.33/BRL AFTER $65.85 LOW

1:17 PM ET 3/29/06 UNLEADED GAS LEADS ENERGY FUTURES HIGHER

1:17 PM ET 3/29/06 APRIL UNLEADED GAS UP 2.7% NEAR 2-MONTH HIGH OF $1.935/GAL

1:17 PM ET 3/29/06 MAY CRUDE CLIMBS 43C TO AN OVER 7-WEEK HIGH OF $66.50/BRL

1:17 PM ET 3/29/06 APRIL NATURAL GAS UP 4.6C AT $7.26/MLN BTUS

2:54 PM ET 3/29/06 MAY CRUDE UP 38C TO END NEAR A 2-MONTH HIGH OF $66.45/BRL

3:08 PM ET 3/29/06 APRIL UNLEADED GAS UP 3.7%, ENDS AT 2-MO HIGH OF $1.9542/GAL

WASHINGTON — The House Republican who oversees the Internal Revenue Service budget wants to know more about a proposal to change privacy rules governing tax preparers who handle taxpayers' personal information.

The proposal alarmed consumer groups and some lawmakers, who fear the changes could open taxpayers to more widespread disclosure or sale of personal information.

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The regulations say a tax preparer can disclose tax return information to a third party if the taxpayer gives consent. They also say a tax preparer can market other financial products to clients if those products are from an affiliated group, such as a bank or lender within the same holding company.

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Several consumer groups say that change eliminates a restriction on outside companies getting hold of taxpayers' personal data for marketing purposes. But the IRS says the regulation has always allowed outside companies to use tax return information if the taxpayer consents.

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http://www.chron.com/disp/story.mpl/ap/politics/3755711.html

Stock investors must have been the only ones surprised by Ben Bernanke's first interest-rate move on Mar. 28 as new Fed Chairman. Fed watchers had long predicted the central bank's Federal Open Market Committee (FOMC) would continue its string of quarter-point hikes in the overnight lending rate, boosting the key policy rate to 4.75%.

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GREENSPAN'S WORDS. Investors may have wanted a stronger signal from the Fed that its 15th consecutive hike since June, 2004, would be the last for a while. If they had read the FOMC's post-meeting statement closely, they would have seen signs that their wish may come true soon. Most Fed experts predict that, barring any shocks or bad news, Bernanke will raise rates one more time, at the next FOMC meeting on May 10.

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EYES ON HOUSING. Investors should have paid better attention. Bernanke's FOMC expanded further on the economic outlook than the committee did after its last Greenspan meeting. Now, the Fed observes that the economy "appears likely to moderate to a more sustainable pace," noting that "inflation expectations remain contained," because energy and commodity price increases have not seeped into prices across the board, while productivity gains continue to hold down labor costs.

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www.businessweek.com/investor/content/mar2006/pi20060329_967968.htm

US prosecutors on Tuesday dropped three charges against Jeffrey Skilling and one charge against Kenneth Lay as they wrapped up two months of testimony in the fraud and conspiracy trial against Enron's former chief executives.

US District Court Judge Sim Lake agreed to drop two counts of securities fraud and one count of making false statements to auditors against Mr Skilling and one count of securities fraud against Mr Lay.

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The dropped charges related to the first quarter of 2000, a period for which the prosecution did not present evidence.

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Much of the trial has focused on Mr Skilling, yet prosecutors homed in on Mr Lay in their final hours of testimony by Joanne Cortez, who managed Enron's credit lines. She said she had been very upset when Mr Lay had asked to raise his credit line from $4m to $7.5m in October 2001, even as what was once the US's seventh-largest company was sliding into bankruptcy. Mr Lay had been selling Enron shares back to the company to repay his line of credit.

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http://msnbc.msn.com/id/12056330/

General Motors Corp. laid off several hundred white-collar workers Tuesday as part of a plan to bring its ailing North American operations back to profitability.

It was the first round of salaried cuts this year for the world's largest automaker. GM didn't give an exact figure but said fewer than 500 jobs were cut Tuesday at 30 locations across the United States, including factories and engineering centers.

A cut of just less than 500 jobs would represent about 1.3 percent of GM's U.S. salaried work force of 36,000. GM has said it plans to cut 7 percent of its salaried work force this year, or 2,500 jobs, so more cuts are on the way.

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www.forbes.com/entrepreneurs/feeds/ap/2006/03/28/ap2628097.html

I've been under the impression that's Corporate America's way now. It's what has been happening in many of the (now failing) companies in my area and what they were teaching when I was enrolled for my BA. The "looks good on paper" bean counters tend to climb the ladder, get the numbers lookin' fine to pad their resume, then move on to the next lucrative offer. It's not just a G.M. thing.

:donut: I know WS will probably stand around cheer this guy as he takes the helm and I truly hope he turns it around, but I think this does not bode well. These folks have a passion for the numbers, NOT THE PRODUCT. It could possibly be the kiss of death for GM because as we know, sometimes things that might look logical on paper may not be the best and most fruitful thing. Take micro loans to the poor. Why loans money to the poor. But a little money with a bit of education and miracles happen. Yeh, that works on paper...sure. A hybrid car looks terrible on paper now but we can no longer ignore this option and R&D and production needs to progress at a furious pace and NOW. I'd almost feel better if they had selected an engineer instead of an account.
Count on more surprised economists:eyes:

Happy hunting and watch out for the bears.

Guess I'm in for an education here.

http://quote.bloomberg.com/apps/news?pid=10000103&sid=a1XIHRE19t98&refer=news_index

March 29 (Bloomberg) -- General Motors Corp. bonds and shares fell after its largest supplier moved closer to a strike and the automaker disclosed new federal subpoenas.

<snip>

Standard & Poor's said today it is putting GM's B credit rating on Creditwatch with negative implications, meaning it may downgrade the debt, in reaction to the need to renegotiate the revolving line of credit. The current rating is five steps below investment grade.

The automaker also said in the filing that it ``recently'' received Securities and Exchange Commission subpoenas related to selling and then repurchasing precious metals and a federal grand jury subpoena relating to supplier credits.

GM said in October that it had received SEC subpoenas about supplier cost reductions and credits. The company said March 16 that it was restating some of its results after its own review of the accounting for those credits.

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What in the world???? Again:

related to selling and then repurchasing precious metals

:wtf:

http://www.theresourceinvestor.com/RI-archive/2005/0405-gmgold.html

A group of union and employee insurance plans sued Pfizer, alleging the drugmaker increased their health-care costs by billions of dollars by illegally promoting the company's Lipitor cholesterol drug.

The lawsuit, filed in Newark Federal Court, claims Pfizer encouraged doctors to prescribe Lipitor for uses not approved by the Food and Drug Administration and in violation of prescribing guidelines.

short story...

http://www.nydailynews.com/business/story/403768p-341975c.html

Richard Daughty, the angriest guy in economics -- World News Trust

I was surprised to see that Total Fed Credit was not exploding last week. I was even more surprised to see that Foreign Holdings of U.S. Debt held at the Fed was actually down by $8 billion last week, too. Even the banks were not making fools of themselves, as is their wont, by gobbling up huge fistfuls of government debt. It was, in a word, quiet. In the movies, when somebody remarks how quiet it is, the hero says "Too quiet!" and the next thing you know there are arrows and/or bullets flying all over the damned place.

So I nervously remark that it is, indeed, the proverbial "too quiet," because I know that there are enemies out there. For one thing, crude oil prices are up to around $66 a barrel, although to think that oil exporters would NOT factor in an increasing devaluation of the dollar into the price of oil, in the face of enormous American trade deficits, monstrous American budget deficits and stupefying rises in American business and household debt levels, is to insult their intelligence. And in that regard I will note, with a snide Mogambo sneer (SMS), that they were smart enough to grab the global real estate that had most of the oil, while we took the part that is next to Mexico and South America, places so corrupt and stupid that economic refugees are flooding into the USA to get away from there!

And for another thing, bonds are rising in yield, meaning that bonds are falling in price, meaning that all those billions of people around the world who own U.S. bonds lost some money and are getting ready to lose some more as interest rates keep rising. Beyond that, two other noteworthy things happened last week: The Federal Reserve has now officially stopped reporting M-3, the broadest measure of the money supply, and we have the new Treasury Statutory Debt Limit of $8.965 trillion, up by the $781 billion approved last week by Congress at the last minute. Potent stuff!

I hear a rustling in the bushes off to my right, and my trigger finger spasms. This is the economic enemy of loans/leases at the banks increasing to a record $5,569 billion, and savings deposits also soaring to a record of $5,238 billion, yet Required Reserves in the banks fell to a microscopic $40 billion. Hahaha! The record low was in 2001, when Required Reserves sank to $38 billion, which was the "insurance" against losses in their much, much, MUCH smaller books of loans/leases and deposits. You wanted fractional-reserve banking carried to ludicrous extremes? Well, brother, you've got it now!

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http://worldnewstrust.org/modules/AMS/article.php?storyid=2880

http://quotes.ino.com/chart/?s=NYBOT_DX

Last trade 90.29 Change +0.03 (+0.03%)

Dollar Traders Now Looking for 5.25% Rates

http://www.dailyfx.com/story/dailyfx-reports/daily-fundamentals/7631-dollar-traders-now-looking-for-525.html

The US Federal Reserve raised interest rates for the fifteenth time by a quarter of a point today to 4.75 percent, the highest level in 5 years. The FOMC statement was also much more bullish than the market was expecting. With Fed Fund futures originally showing only a small minority favoring 5.25 percent rates, the positive outlook on growth and concerns for rising inflation pressures has 5.25 percent the more likely top now. Newly installed Fed Chairman Ben Bernanke made his mark at today's meeting by changing the entire middle paragraph, or the meat of the statement. The committee now believes that the weaker numbers that we saw in the fourth quarter of last year were due to temporary or special factors. We will be fascinated to hear what these "special factors" are since most of the talk of the slowdown was due to higher interest rates crimping the housing market or energy prices. The Fed sees current growth as strong but expects it to moderate to a more sustainable pace. However in contrast to Greenspan's more concise comments on inflation, in true Bernanke style, the updated comments on inflation were far clearer. The Fed said that even though the "run-up in the prices of energy and other commodities appears to have had only a modest effect on core inflation, ongoing productivity gains have helped to hold the growth of unit labor costs in check, and inflation expectations remain contained. Still, possible increases in resource utilization, in combination with the elevated prices of energy and other commodities, have the potential to add to inflation pressures." The bottom-line is that the dollar is rallying on the more hawkish comments, especially since they reiterated that “further policy firming may be needed.” This suggests that we are in store for two more rate hikes. However with a great deal of economic data still due for release this week and five central bankers scheduled to speak, we expect a lot more volatility in the days to come. A vertical rally in the dollar here on forward is far from certain.

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http://www.kitco.com/ind/Saxena/mar292006.html

CURRENT SITUATION – The absurd money-creation continues. Slowly yet surely, the “stealth” confiscation of savings is gaining momentum as money loses its value. Central banks claim that they are raising interest-rates to fight inflation. At the same time they are slipping in more rum into the punch bowl, thus creating just what they say they want to fight – inflation! Take a look at the latest year-on-year money supply growth-rates around the world:

Australia + 9.1%
Britain + 11.7%
Canada + 7.7%
Denmark + 14.7%
US + 8.1%
Euro area + 7.3%

When I glance at these mind-boggling figures, at least I don’t see any monetary tightening taking place! Make no mistake, this excessive liquidity is inflation that banks are creating and this inflation is destroying the purchasing power of your hard-earned money. As asset-prices continue to benefit from this monetary insanity, the wealth inequality is getting wider resulting in social unrest in several parts of the world. The ultimate truth about inflation is that it always benefits the rich who are able to ride the inflationary wave by investing in assets, whereas the poor become even more impoverished as things continue to become more expensive.

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The point I am making is that under the present monetary system inflation is a constant. What changes though, are the rates of inflation (money supply growth) in various countries and the sectors of the economy that benefit from inflation. For instance, during the 1970’s, commodities were the main beneficiaries of inflation and financial assets lost out. However, in the following two decades, it was financial assets which were the biggest beneficiaries of inflation. Since 2001, this excess liquidity has (once again) started flowing into commodities as can be seen from the recent massive gains in tangibles relative to gains made in financial assets such as stocks and bonds.

There is another crucial point I’d like to make. During highly inflationary times (such as now), the purchasing power of money declines against all asset-classes. In other words, if enough money is printed, despite a horrendous economy, stocks, bonds, property, commodities as well as collectibles may all rise at the same time. Such a rise in asset prices due to high inflation gives the ILLUSION of prosperity. Nothing can be further from the truth however. Hyperinflation almost always leads to a collapse in the inflating country’s currency relative to other major world currencies. Now, if all the countries decide to print money (inflate) at the same time, which seems to be happening now, instead of declining against each other, the various currencies may decline against assets. So as investors, we need to try and figure out which assets are likely to appreciate the most due to inflation.

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here's the national debt chart



and here's adjusted for inflation



somehow, it appears that we are monetizing the debt.

http://www.nwprogressive.org/weblog/2006/03/debt-monetizing-debt-lying-about-debt.html

The Senate voted to lift the debt limit by $781 billion last Thursday. Total debt is up to nearly $9 trillion. The Bush deficits keep adding to the pile. As big as they are, they are still being understated. Official numbers on the deficit depend on a continuing back door into Social Security Funds.

It's not that I mind filling Social Security Retirement and other funds with federal bonds. What I mind is the bankrupting of the operating budget by incompetence and lying and then concealing the extent of the crime. The level of borrowing is an important measure of solvency. A bond is a debt instrument. Claiming we're not borrowing when we are is a fraud.

I also mind the hoopla of a couple of Republican Senators objecting to this casino financing in the name of fiscal responsibility. This is strictly a show for the benefit of the folks back home. Big debt and Republicans go together (see chart).



The great preponderance of debt, as you can see, has been incurred during the stewardship of Republican presidents.

This is business as usual for them. Much like John Ashcroft showing up behind the desk of his own K street lobbying firm is business as usual.

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http://www.freemarketnews.com/Analysis/205/4263/2006-03-24.asp?wid=205&nid=4263

Longtime readers of my commentaries may recall that I have been waiting for the dollar to fall while US interest rates rise at the same time. Even though it may not be intuitive that the dollar could fall while interest rates rise, I think current events in both China and Japan are setting the stage for it to happen.

To show how significant recent announcements from both China and Japan are I am going to recap the events leading up to them. If the following is too brief, I suggest you read past commentaries on my website (www.paulvaneeden.com) for more background.

Since 1992 more than four trillion dollars of foreign capital have been invested in the US. This capital influx was due to a series of currency crises, beginning with the Brazilian Real in 1992. Capital, seeking a safe haven, poured into the United States. Initially, this influx of capital caused US interest rates to fall, US corporate profits to rise and consumer spending to increase. The resultant bull market in stocks and bonds was fertile ground for investor speculation and gave rise to the high-tech, or Internet bubble. When the high-tech bubble burst, the Federal Reserve reacted by artificially driving interest rates even lower, causing a real estate bubble in the US and averting the collapse of the broader US stock market.

When the Southeast Asian currency crisis began in 1996 with the fall of the yen, the extraordinary amount of capital that flowed into the US caused an unprecedented rise in the US dollar exchange rate. This increase in the US dollar exchange rate in turn caused a decrease in the price of all things priced in dollars: oil, commodities, metals, gold and, of course, all US imports. Lower import prices in the US in turn lead to an expansion of the US trade deficit.

At the same time we also saw the emergence of China as an economic powerhouse, with a massive shift of manufacturing capacity away from North America and Europe to China. In order to maximize the benefit of the strong US dollar, both China and Japan elected not to sell the trade dollars they were receiving back into foreign exchange markets. Instead, they bought US Treasuries with those dollars.

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Longtime readers of my commentaries may recall that I have been waiting for the dollar to fall while US interest rates rise at the same time. Even though it may not be intuitive that the dollar could fall while interest rates rise, I think current events in both China and Japan are setting the stage for it to happen.

Yesterday's rate increase seems to have had a very short impact on the dollar:

Last trade 90.18 Change-0.08 (-0.09%)

Settle Time 15:01 Open 90.26

Previous Close 90.26 High 90.45

Low 90.13 2006-03-29 11:57:29, 30 min delay

52wk High 92.63 52wk High Date 2005-11-16

52wk Low 83.36 52wk Low Date 2005-04-22

Open Time 19:00 Close Time 15:00

http://www.dallasnews.com/sharedcontent/dws/bus/columnists/all/stories/DN-dimartino_28bus.ART.State.Edition1.e357589.html

For many people, the concept of systemic risk has never been experienced outside a textbook.

But many financial experts worry we're closer than ever to experiencing it, thanks to stresses on the ubiquitous mortgage market.

Lately, lax mortgage lenders have all but maximized the potential for systemic risk. Encouragingly, regulators are finally stepping in.

"Regulators are obviously very concerned," said Paul Kasriel, chief economist at Northern Trust Co. "They've issued guidelines with regard to home-equity lending and are working on guidelines for nontraditional mortgages."

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in Houston in the late '80's. When the housing market went belly up, the S&L scandal hit. It was very bleak times indeed. I see so many of the same red flags now...

http://www.nytimes.com/2006/03/29/business/worldbusiness/29trade.html?_r=2&oref=slogin&oref=slogin

WASHINGTON, March 28 — Two of China's most relentless critics in Congress announced a temporary cease-fire on Tuesday in their long-running attack on China's foreign-exchange practices.

In an about-face, Senator Charles E. Schumer, Democrat of New York, and Senator Lindsey Graham, Republican of South Carolina, dropped plans for a bill that would threaten steep tariffs on Chinese imports if Chinese leaders refuse to let their currency, the yuan, rise in value against the dollar.

Both lawmakers said they had become more optimistic as a result of their weeklong trip to China, where Chinese leaders emphasized their willingness to let their currency float more freely and to address other aspects of their nation's growing trade deficit with the United States.

"We learned that the Chinese have come to a conclusion that a fixed currency is no good for China," Mr. Schumer said Tuesday. "We believe that the progress we have seen in the last two or three weeks will continue."

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Though they said that they reserved the right to push for a vote by the end of September, the two senators made it clear they hoped to let the matter drop.

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http://news.yahoo.com/s/ap/20060329/ap_on_re_us/lobbyist_fraud

MIAMI - Disgraced former lobbyist Jack Abramoff has let others lobby on his behalf in his Florida fraud case — including rabbis, military officers and even a professional hockey referee.

More than 260 people wrote letters asking a federal judge for leniency when Abramoff and a former partner are sentenced, which was scheduled for Wednesday. Both pleaded guilty to conspiracy and wire fraud stemming from the 2000 purchase of a gambling boat fleet.

The letters, obtained by The Associated Press, put a new spin on the foibles and crimes of a man who became the face of Washington's latest corruption scandal.

"Jack is a good person, who in his quest to be successful, lost sight of the rules," National Hockey League referee Dave Jackson wrote, describing the time Abramoff brought 14 kids to his dressing room before a game.

Abramoff and one-time partner Adam Kidan admitted concocting a fake $23 million wire transfer to make it appear they had made a large cash contribution to the $147.5 million purchase of SunCruz Casinos. Based on that fake transfer, lenders provided the pair with $60 million in financing.

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:nopity:

but I am a bit sad that the world is such a place now that such stories make headlines. John, you have earned some seriously good Karma.

I too was very impressed, until I read the line near the end of the article, which stated that he told police he thought the jewelry was "costume jewelry."

I'm all for assuming the guy was a fine upstanding citizen. But I wonder how he really felt when they informed him that he turned in $1 MILLION worth of stuff, as opposed to $100 worth.

Bush's happy news :eyes:

http://www.bloomberg.com/apps/news?pid=10000086&sid=acxzNJr328wY&refer=latin_america

March 29 (Bloomberg) -- Shares of companies based in developing countries rose for a seventh quarter, extending the longest string of advances since the 1980s, as faster economic growth and a commodities rally drew record funds.

Further gains may be hard to come by. The ratio of stock prices to earnings in so-called emerging markets is the highest since 1999 when compared with the developed world. Companies in these markets may suffer as rising borrowing costs in the U.S. and Europe limit global economic growth.

``We're starting to move into expensive territory,'' said Allan Conway, who oversees some $8 billion as head of emerging- markets equities at Schroders Investment Management in London. ``It's a flag of caution.''

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Getting Noticed

Since the rally began in the third quarter of 2004, the MSCI emerging-markets index has surged 78 percent. The gains have encouraged investors to plow money into the shares.

Equity funds that invest in emerging markets drew $22.1 billion on a net basis this year as of March 22, according to Brad Durham, a managing director at Emerging Portfolio Fund Research. The inflow eclipsed the record $20.3 billion they garnered in all of 2005, according to the Boston-based firm, tracking 1,003 of the funds that manage about $330 billion.

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alternative cardiovascular stress tests...why, what's the problem. It is hard to get guys in for routine exams. This alternative stress test may make it easier for guys to make their appointments.:evilgrin:

1:07 PM ET 3/29/06 5-YR AUCTION HAS 2.25 BID-TO-COVER RATIO

1:06 PM ET 3/29/06 5-YR NOTE AUCTION HAS HIGH YIELD 4.785%

1:06 PM ET 3/29/06 5-YR AUCTION HAS MEDIAN YIELD 4.716%

1:05 PM ET 3/29/06 5-YR AUCTION HAS 26% INDIRECT BID

http://www.321energy.com/editorials/karn/karn032706.html

EXECUTIVE SUMMARY:

Consider the implications of the following anomaly. For more than a decade, increasingly dire warnings have been issued by media sources worldwide and confirmed by both recognized experts and such august bodies as the United Nations and the World Health Organization. Atypically, politicians are mute on the subject and the general public is steadfastly blasé despite ever more strident warnings from the scientific community.

The Emerging Trends Report (ETR) recognizes distinct parallels in this behavior to the prevalent attitude toward the probable end of inexpensive petroleum—right up to the point prices exploded. Similarly, the ETR submits that investors who grasp the enormity of this problem and position themselves accordingly stand to reap tremendous profits for years to come.

What scientists are universally warning about and the public is studiously ignoring is CLEAN WATER... and so-called First World countries are about to discover they are not immune to this most fundamental of all problems. Quite simply, the world’s burgeoning population is both overusing and misusing the planet’s finite supply of fresh water. Between aging infrastructure or lack thereof, aquifer drawdown and bad water policy, agricultural, industrial and human pollution as well as salination, and accelerating climate change, the world faces a developing crisis of truly Biblical proportions—one requiring time, concerted effort, and inconceivable amounts of money to avert.

Recently, investing in water has gained a certain mainstream popularity in the United States and Europe, but the comparatively small number of ‘headline’ pure-play stocks in the water industry has driven many favorites to P/E multiples more closely resembling dot.com stocks than stodgy old water stocks. The ETR does not take this to mean the bloom is off the rose; far from it in fact: if ever there were a trend that is destined to run for decades, water is it. The ETR sees numerous opportunities, both domestically and internationally, mainstream as well as obscure, conservative and wildly speculative, that have yet to begin their march toward multiple parity with the more obvious choices—but they will.

DETAIL 1: “One of the crueler ironies… is that those with the lowest incomes generally pay the most for their water.”

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http://www.guardian.co.uk/comment/story/0,,1740893,00.html

The disastrous foreign policies of the US have left it more isolated than ever, and China is standing by to take over

Martin Jacques
Tuesday March 28, 2006
The Guardian


'Our power, then, has the grave liability of rendering our theories about the world immune from failure. But by becoming deaf to easily discerned warning signs, we may ignore long-term costs that result from our actions and dismiss reverses that should lead to a re-examination of our goals and means."

These are the words of Henry Hyde, chairman of the House international relations committee and a Republican congressman, in a recent speech. Hyde argues that such is the overweening power of the US that it may not hear or recognise the signals when its policy goes badly wrong, a thinly veiled reference to Iraq. He then takes issue with the idea that the US can export democracy around the world as deeply misguided and potentially dangerous. He argues: "A broad and energetic promotion of democracy in other countries that will not enjoy our long-term and guiding presence may equate not to peace and stability but to revolution ... There is no evidence that we or anyone can guide from afar revolutions we have set in motion. We can more easily destabilise friends and others and give life to chaos and to avowed enemies than ensure outcomes in service of our interests and security."

It is clear that the US occupation of Iraq has been a disaster from almost every angle one can think of, most of all for the Iraqi people, not least for American foreign policy. The unpicking of the imperial logic that led to it has already commenced: Hyde's speech is an example, and so is Francis Fukuyama's new book After the Neocons, a merciless critique of Bush's foreign policy and the school of thought that lay behind it. The war was a delayed product of the end of the cold war and the triumphalist mentality that imbued the neocons and eventually seduced the US. But triumphalism is a dangerous brew, more suited to intoxication than hard-headed analysis. And so it has proved. The US still has to reap the whirlwind for its stunning feat of imperial overreach.
In becoming so catastrophically engaged in the Middle East, making the region its overwhelming global priority, it downgraded the importance of everywhere else, taking its eye off the ball in a crucial region such as east Asia, which in the long run will be far more important to the US's strategic interests than the Middle East. As such, the Iraqi adventure represented a major misreading of global trends and how they are likely to impact on the US. Hyde is clearly thinking in these terms: "We are well advanced into an unformed era in which new and unfamiliar enemies are gathering forces, where a phalanx of aspiring competitors must inevitably constrain and focus options. In a world where the ratios of strength narrow, the consequences of miscalculation will become progressively more debilitating. The costs of golden theories will be paid for in the base coin of our interests."

The promotion of the idea of the war against terror as the central priority of US policy had little to do with the actual threat posed by al-Qaida, which was always hugely exaggerated by the Bush administration, as events over the last four and a half years have shown. Al-Qaida never posed a threat to the US except in terms of the odd terrorist outrage. Making it the central thrust of US foreign policy, in other words, had nothing to do with the al-Qaida threat and everything to do with the Bush administration seeking to mobilise US public opinion behind a neoconservative foreign policy. There followed the tenuous - in reality nonexistent - link with Saddam, which provided in large measure the justification for the invasion of Iraq, an act which now threatens to unravel the bizarre adventurism, personified by Donald Rumsfeld, which has been the hallmark of Bush foreign policy since 9/11. The latter has come unstuck in the killing fields of Iraq in the most profound way imaginable.

more...

RNC Memo Warns GOPers Not To Distance Themselves From Bush

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2195098

http://hotlineblog.nationaljournal.com/archives/2006/03/post_6.html


"Brand W" - oh yeah, marketing at it's finest. :eyes: Somehow I don't think government was meant to be run this way...Seems people use more freakin' discretion picking their brand of toilet paper than their leaders. Never mind what "We the People" want - it's easier to shape what they want through marketing these days. Sheesh, and to think I used to abhor "politicking". I'd take it back in a heartbeat over this marketing phenomena, at least they had to pay SOME attention to the voter's wants. What was that famous line again - something about "you don't introduce a new product in August" or something like that.

'heck of a job' is the Bushism for the kiss of Death. Great graphic :rofl:

Stupendous, in fact. But oddly, I have never heard of the Treasury Department referred to as the Treasury portfolio. Slip of the tongue, maybe?

that would be Carlyle Grp, no doubt.

09:13 am : S&P futures vs fair value: +3.5. Nasdaq futures vs fair value: +4.5.

08:54 am : S&P futures vs fair value: +3.7. Nasdaq futures vs fair value: +4.0. The stock market remains poised to open higher. Gains in overseas markets, particularly in Japan's Nikkei, are contributing to the early domestic tone. The dollar benefited from yesterday's rate hike and policy statement, and it served as a catalyst for a1.5% advance in that index that was led by export-oriented companies. Separately, the Healthcare sector may receive some added attention today. Reports indicate that companies are lining up to bid for Pfizer's (PFE) consumer business, for which Pfizer is reportedly targeting $14 billion, and UnitedHealth (UNH) reaffirmed its very strong 2006 financial expectations.

08:31 am : S&P futures vs fair value: +3.8. Nasdaq futures vs fair value: +5.0. Versus fair value, futures trade continues to suggest an upside open for the cash market. Today's economic calendar features just one item. At 10:30 ET, the Department of Energy will release its weekly inventory report. With crude oil futures closing over $66 per barrel yesterday, the data is likely to garner a lot of attention. With respect to the economic front, the markets await tomorrow's final reading on Q4 GDP.

9:33
Dow 11,182.65 +28.11 (+0.25%)
Nasdaq 2,310.52 +6.06 (+0.26%)
S&P 500 1,295.69 +2.46 (+0.19%)
10-Yr Bond 47.88 +0.10 (+0.21%)
NYSE Volume 51,860,000
Nasdaq Volume 72,551,000

Place your bets folks!

Dow 11,180.00 +25.46 (+0.23%)
Nasdaq 2,311.34 +6.88 (+0.30%)
S&P 500 1,296.25 +3.02 (+0.23%)
10-Yr Bond 4.786% +0.01

10-yr Bond 48.04 +0.26 (+0.54%)
30-yr Bond 48.18 +0.25 (+0.52%)

10-yr Bond 48.00 +0.22 (+0.46%)
30-yr Bond 48.18 +0.25 (+0.52%)

http://www.financialsense.com/editorials/kwr/2006/0328.html

Introduction

For the foreseeable future, the role of religion in Europe will be increasingly determined by the heightened battle between traditional Judeo-Christian forces, the increasingly popular secularist movement, and the rising tide of Muslim immigrants. This predicament could indeed become the most crucial societal and political challenge for Europe throughout the remainder of the 21st century. The root causes of this predicament are numerous. However, those causes can be arguably narrowed down to three – Europe’s flawed immigration policies (at the EU level and individual countries level), the consequences of the recent rapid expansion of the EU’s membership to 25 states, which include outspoken Catholic populations (Poland, Slovakia, and Malta), and the increasing influence of the secularist movement.

Religion in Europe

Europe is comprised of nations whose populations are still predominately Christian. However, societal trends over the past twenty-years reveal dramatic changes that show no signs of abating and will further challenge Europe’s historical Christian population base. In general, Europe’s indigenous population has been declining for decades, primarily due to the rise of women in the workforce as family sizes have been shrinking. As a result, Europe’s future and existing workforce populations are increasingly relying upon immigrants. Furthermore, the growing trend among these immigrants is that they are overwhelmingly non-Christian.

Based on current reproductive trends, Germany, between 2005 and 2050, is expected to lose in native population the equivalent of the entire population of the former East Germany (approximately 16 million), while Spain over the same period is expected to lose more than 35 percent of its population. European society will have no choice but to continue to accept immigrants to make-up for this demographic deficit. In turn, without foreseeable mass conversions to Christianity, Islam, the religion of the majority of those immigrants will further challenge Christianity as Europe’s dominant religion. This would indeed be ironic given Europe’s historical religious wars which saw Christians versus Muslims – yet, this time the crescent may indeed defeat the cross.

In the post-World War II era, Christianity in Europe, as measured in public worship trends, has been in a severe decline. Based on recent poll results, Europeans have continued to abandon their Christian heritage. In France, only 5 percent of the population attends a religious service each week, with the demographics skewed to the aged. Studies have further revealed that only 15 percent of Italians attend weekly, while roughly 30 percent of Germans still attend church services at least once a month. Moreover, only 21 percent of Europeans hold religion to be ‘very important.’ In France, the most secular of Europe’s nations outside of the formerly Lutheran northern European countries, the percentage is only roughly 10 percent. In comparison to the US, a recent survey by the Pew Forum on Religion and Public Life determined that nearly three times as many Americans called their faith ‘very important.’

The Challenge of Secularism

more...

Dollar crisis google. Can't cut and paste from the article. I found the similarities interesting. Looks like we might really be in the dawn of a new age.

http://mathaba.net/news/print04.shtml?cmd<40>=i-42-4a914735f28e139b13bc033f2161358d

9:53
Dow 11,174.63 +20.09 (+0.18%)
Nasdaq 2,310.00 +5.54 (+0.24%)
S&P 500 1,295.06 +1.83 (+0.14%)
10-Yr Bond 48.02 +0.24 (+0.50%)
NYSE Volume 209,169,000
Nasdaq Volume 241,980,000

09:40 am : As futures trade had foreshadowed, the equity market started the session on gaining ground. There are a few analyst upgrades (on stocks including MMM, SUNW, MEL, AEOS) and raised guidance from TD Ameritrade (AMTD) contributing to the positive disposition. Ultimately, though, there is not much compelling corporate news to account for the trading tone. As such, it is being attributed to the view that the market is hoping for just one more rate hike. We don't concur, however. We believe that the lack of modification to the FOMC's policy directive suggests that at least one more rate hike is in store - and probably more. The market has been resilient to interest rate concerns of late, but the implications of rising rates will inevitably lead to slower growth that Wall Street expects in the second half of the year. Separately, the market awaits the Department of Energy's inventory data at 10:30 ET. The report is likely to be a trading catalyst.DJ30 +22.73 NASDAQ +5.64 SP500 +1.88

11:00 AM ET 3/29/06 LARGEST SUVS TO BE INCLUDED IN CAFE STANDARDS FOR 1ST TIME

11:00 AM ET 3/29/06 MINETA: NEW CAFE STANDARDS TO SAVE 10.7 BILLION GALLONS

11:00 AM ET 3/29/06 LIGHT TRUCKS TO BE REQUIRED TO AVERAGE 24.1 MPG: MINETA

11:00 AM ET 3/29/06 U.S. PROPOSES FUEL ECONOMY STANDARDS FOR SUVS

Dow 11,180.25 +25.71 (+0.23%)
Nasdaq 2,324.06 +19.60 (+0.85%)
S&P 500 1,298.16 +4.93 (+0.38%)
10-Yr Bond 4.796 +0.18 (+0.38%)

NYSE Volume 688,013,000
Nasdaq Volume 770,619,000

11:00 am : As traders digest the recently released energy inventory report, the indices have retraced some of their steps. Crude futures are trading in choppy fashion as the markets weigh a much greater than expected build in crude oil supply with greater than anticipated drops in gasoline and distillate supply. Gasoline is a focal point as emphasis is shifting from the winter heating season (i.e., distillates) to the summer driving season. As a result, the 5.34 million barrel drop in gasoline - which was more than three times as much as had been expected - is getting added attention. At this point, though, it appears that energy traders are viewing the data as a mixed bag. The price of crude is back to its pre-data levels, which is about $66 per barrel. Meanwhile, the Energy sector has ticked marginally higher. It's 0.5% gain is teaming with a similar advance in the Tech sector and a 0.4% gain in Industrials in supporting the market.DJ30 +7.69 NASDAQ +8.89 SP500 +2.68 NASDAQ Dec/Adv/Vol 1022/1756/667.5 mln NYSE Dec/Adv/Vol 1037/1988/436.5 mln

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=78983&version=1&template_id=48&parent_id=28

DOHA: The proposed common currency for the GCC by 2010, expected to be pegged to the US dollar, will be a smooth transition unlike that witnessed in the eurozone and will be a win-win situation for all the member-economies, a top Standard Chartered Bank official has said.

His views came even as news reports suggested that the introduction may be delayed.

“I think there are many options. Expectations are that it will be pegged to the US dollar. However, we economists in StanChart believe that the GCC countries will peg it to a basket of currencies,” bank’s head of global markets Daniel Hanna said.

There are still others who have suggested pegging it to gold and oil. The most likely scenario is that it will be pegged to the US dollar, he said, adding that UAE Central Bank governor Sultan bin Nasser al-Suwaidi has even suggested that the unified currency would be floated by 2015.

When asked whether there would be a need for a common regulator like the the European Central Bank (ECB), Hanna said the GCC is already looking at it (something akin to a common central bank) and had held discussions on the matter.

more...

http://today.reuters.co.uk/news/newsArticle.aspx?type=businessNews&storyID=2006-03-29T135901Z_01_L29270866_RTRUKOC_0_UK-MARKETS-ECLIPSE.xml&archived=False

LONDON (Reuters) - Wednesday's solar eclipse has already awed observers around the globe and one financial astrologer says its effects could yet be felt in falling share markets, as eclipses herald times of dramatic change.

Henry Weingarten, managing director of the Astrologers Fund in New York, sees a correction of at least 10 percent in the Dow Jones Industrial average <.DJI> over the next 90 days following the eclipse, which came a day after a widely expected U.S. interest rate rise.

snip>

"Part of the flavour of an eclipse is because of what's going on. It's not necessarily up or down for the markets but what are the other astrological conditions," he said.

"In the United States we're expecting a number of potential crises over debt. There are 37 things that we've identified that can go wrong," he said.

"The (Dow) market in our opinion will be testing 10,000 and the Nasdaq 2,000 over the 90 days because of these crises ...one of them is probably a dollar crisis as well."

more...

Dow 11,214.82 +60.28 (+0.54%)
Nasdaq 2,329.51 +25.05 (+1.09%)
S&P 500 1,301.93 +8.70 (+0.67%)
10-Yr Bond 4.780 +0.02 (+0.04%)

NYSE Volume 822,264,000
Nasdaq Volume 931,862,000

eta:

11:30 am : Buyers have become more aggressive over the past half hour, and each of the major indices are heading higher. The Nasdaq is faring especially well. The computer hardware and semiconductor industries, which had been two of yesterday's heaviest drags, are behind the Composite's advance and the Tech sector's leading 1% gain. Hewlett-Packard (HPQ 32.84 +2.77), due to valuation concerns raised yesterday, faced some sharp selling. Today, it's rebounding and spurring optimism among its peers. Adding momentum are upgraded Sun Microsystems (SUNW 5.35 +0.32) shares. Morgan Stanley changed its rating on the stock to Overweight from Underweight. Semiconductors, meanwhile, are enjoying some bargain hunting efforts. To that point, the SOX is now up 1.5% and adding to its year-to-date gain that has been pared to about 3%. DJ30 +48.19 NASDAQ +23.01 SP500 +7.11 NASDAQ Dec/Adv/Vol 913/1923/856.5 mln NYSE Dec/Adv/Vol 996/2075/554.4 mln

article.

"Annus Horribilis 2006: US Begins Descent, from Financial Hegemon to Pokemon"

http://www.emediawire.com/releases/2006/3/emw364284.htm

PRWEB) March 29, 2006 -- Please visit Capuchinomics.com to read the FREE eLetter "Annus horribilis 2006: US begins descent, from financial hegemon to pokemon" now available on our website or by joining our e-mail list. Capuchinomics and its editor and publisher Paul Mampilly notes that, "the end of the Dollar carry trade which beckons soon, will catalyze a financial crisis of significant proportions as bond yields spreads are at multi-generational lows, our risk indicators at levels of delusional complacency and risks are arrayed like stars on a cloudless night."

As an investor and a participant in the global financial markets, what can investors do to prepare for this coming crisis? Mampilly suggests that investors should "review investments and finances for a malevolent period in financial markets" as in his view, "the placid conditions of today disguise the immensity of the painful and sharp adjustments ahead." Further he goes on to warn investors that "many commonly cited safe investment strategies are traps conceived by Wall Street to maximize their cut while other investments that have been safe harbors in previous crisis periods have been contaminated by the liquidity that is responsible for the current imbalances and . will offer little protection during a crisis."

11:56 AM ET 3/29/06 APRIL GOLD CLIMBS $2.10 TO $569.10/OZ AFTER $562 LOW

11:56 AM ET 3/29/06 JUNE GOLD RISES $2.30 TO $574.50/OZ AFTER $567 LOW

11:56 AM ET 3/29/06 MAY SILVER TAPS A FRESH 22-YR HIGH OF $11.09/OZ

11:56 AM ET 3/29/06 MAY SILVER LAST UP 18.5C, OR 1.7%, AT $11.055/OZ

12:52 PM ET 3/29/06 JUNE GOLD TAPS $576.70/OZ, ITS HIGHEST LEVEL SINCE FEB. 6

12:52 PM ET 3/29/06 JUNE GOLD LAST UP $4.30 AT $576.50/OZ

12:47 PM ET 3/29/06 JUNE GOLD CLIMBS NEAR A ONE-MONTH HIGH OF $575.70/OZ

12:47 PM ET 3/29/06 JUNE GOLD LAST UP $3.30, OR 0.6%, AT $575.50/OZ IN NY

12:47 PM ET 3/29/06 APRIL GOLD UP $3.10 AT $570.10 AFTER $570.50 HIGH

1:51 PM ET 3/29/06 JUNE GOLD CLOSES UP $6.40 AT $578.60/OZ AFTER $579.50 HIGH

1:51 PM ET 3/29/06 JUNE GOLD'S HIGH MATCHES APRIL GOLD'S 25-YR HIGH FROM FEB. 2

1:51 PM ET 3/29/06 APRIL GOLD CLIMBS $6.30 TO CLOSE AT $573.30/OZ

1:51 PM ET 3/29/06 MAY SILVER ENDS AT 22-YR HIGH OF $11.115/OZ

I just thought it was "cool". B-)
(You'll have to go to the link to see it)

http://news.nationalgeographic.com/news/2006/03/0328_060328_fly_glasses.html


Housefly Gets Glasses Made With Lasers

March 28, 2006—Pampering pets with designer goods isn't so unusual—and now even your houseflies can get outfitted in style.

An entry in a German science-photo competition, this image shows a fly sporting a set of "designer" lenses crafted and set in place with a cutting-edge laser technique. The glasses fit snuggly on the fly's 0.08-inch-wide (2-millimeter-wide) head.

Manufacturing firm Micreon GmbH submitted the insect's picture for the Bilder der Forschung (Photos of Science) 2005 competition. Selected images were on display last week in a Munich shopping center.

Micreon, based in Hannover, Germany (see map), created the fly's eyewear using ultrafast laser micro-machining. The firm notes on its Web site that the process can create objects with high precision at scales of less than a thousandth of a millimeter.

Have a great day. Thanks for the storyand the pic - just hilarious!

just pondering the possibilities...

Quoting the fly: "I can see! I can see! Aaaaah! Aaaaah!" (fly swatter descends on subject)

Quoting the fly: "I can see! I can see! Aaaaah! Aaaaah!" (fly swatter descends on subject)

:spray:

:rofl:

Far Side material....thanks 54anickel.:hi:

Dow 11,229.94 +75.40 (+0.68%)
Nasdaq 2,337.20 +32.74 (+1.42%)
S&P 500 1,304.31 +11.08 (+0.86%)
10-Yr Bond 4.796 +0.18 (+0.38%)

NYSE Volume 1,241,616,000
Nasdaq Volume 1,363,185,000

1:00 pm : Little has changed for the equity market. Buyers remain in control of trade, and gains remain wide-spread. Treasuries, meanwhile, are back on negative ground. Around the noon hour, that market had attempted to rebound, and notes across the curve were hovering near unchanged territory. The recovery effort seems to have stalled, though. There has been little in the way of a positive catalyst. Aside from the energy inventory data, today's calendar was a blank one, and bond traders are still focused on the FOMC event. Although stock market participants, at this point, appear to be taking a more hopeful view on future Fed tightening, bond traders do not appear to concur. Currently, the benchmark 10-year note is down four ticks and up to a 4.80% yield. At the back end of the curve, which is most inflation-sensitive, the 30-year is down 13 ticks and yielding 4.82%. DJ30 +51.71 NASDAQ +27.17 SP500 +8.80 NASDAQ Dec/Adv/Vol 843/2107/1.25 bln NYSE Dec/Adv/Vol 856/2335/828.9 mln

edited to update:

1:34 EST

Dow 11,226.02 +71.48 (+0.64%)
Nasdaq 2,336.85 +32.39 (+1.41%)
S&P 500 1,303.90 +10.67 (+0.83%)
10-Yr Bond 4.802 +0.24 (+0.50%)

NYSE Volume 1,297,149,000
Nasdaq Volume 1,425,431,000

1:30 pm : Since the last update, the market has risen. Tech (+1.7%) continues to be the driving force, and an uptick in Energy (+1.2%) is lending further support. The three major indices continue to register solid gains. Of them, the Dow is underperforming. The majority of its constituents are trending positively, but Caterpillar (CAT 73.38 -1.49) and General Motors (GM 22.32 +0.43) are exerting some downside pressure that is somewhat capping the average's advance. The latter stock is suffering from an analyst downgrade, which has given investors a reason to lock in some of the its 30% year-to-date return. As for GM, that stock is facing selling following the company's assertion that certain GMAC financial information should no longer be relied upon and needs to be restated. Further, there have been questions over whether the sale of a controlling stake in GMAC will occur. DJ30 +72.36 NASDAQ +32.78 SP500 +10.79 NASDAQ Dec/Adv/Vol 833/2153/1.39 bln NYSE Dec/Adv/Vol 906/2321/923.9 mln

just a little kick before markets close

:kick:

30-year at 4.84% and 10-year at 4.81%.

Dow 11,215.70 +61.16 (+0.55%)
Nasdaq 2,337.78 +33.32 (+1.45%)
S&P 500 1,302.89 +9.66 (+0.75%)
Gold future 578.60 +6.40 +1.12%
30-Year Bond 4.84% +0.05 +1.02%
10-Year Bond 4.81% +0.03 +0.67%

NYSE Volume 2,142,403,000
Nasdaq Volume 2,374,732,000

4:20 pm : The market reclaimed the ground it lost yesterday. The S&P and Nasdaq fully erased their FOMC-induced losses, and the Dow came close to doing the same. The Technology sector's leadership was the muscle behind the advance, but buying was broad-based and took virtually every area of the market higher.

Buyers dominated the trading action from start to finish. There was not much meaningful news to account for investors' bullish bias. As such, it appeared to be a result of the stock market's hopeful view that the Fed is near the end of its tightening cycle. We don't necessarily concur, however. It isn't a guarantee that several more rate hikes are on the horizon, but we see the basically unchanged diction of the FOMC's policy directive as indicative of at least one more hike. Beyond that, monetary policy is uncertain and will, as the Fed has said, depend on the data. In our view, recent numbers have not given the Fed a reason to halt its tightening. Accordingly, the possibility of more rate hikes after May should not be dismissed. Lately, the stock market has demonstrated resilience to interest rate concerns. The implications of rising rates will inevitably lead to slower growth than Wall Street expects in the second half of the year, though.

While equities rallied, Treasuries took a different course. Bond traders appeared to have maintained a more cautious stance in the wake of yesterday's FOMC event and amid continued rate uncertainty. Because today's economic calendar lacked data (outside of the energy inventory report), there wasn't much to diverge that market's attention. Selling today was less profound, but yields across the curve rose nonetheless. At the close of equity trade, the 10-year was yielding 4.80% - a level not seen since June of 2004. Still, rate-sensitive areas of the stock market rose. The Financial sector trailed the broader market, yet it still booked a 0.4% gain. Banks traded in mixed fashion. Stocks at the regional and diversified end of the spectrum were relatively flat. Investment banks and brokers, meanwhile, continued their trend of outperformance. A raised profit forecast from TD Ameritrade (AMTD 20.96 +1.80) served as a catalyst there. Other particularly rate-sensitive areas of the market, like the Utilities sector (+0.8%) and the homebuilding industry, also attracted buyers.

Rising yields did not, today, deter buyers. However, that factor did not help stocks, and nor did rising energy prices. After surging yesterday, prices across the energy complex continued their streaks today. The Department of Energy's weekly inventory report was the driver. It was a mixed bag - crude supply rose much more than had been expected, while gasoline and distillate inventories both fell more than had been anticipated - that initially led to choppy energy trading. But the gasoline portion was ultimately the focal point. Its drawdown, which was more than three times the drop analysts had forecasted, garnered added attention as emphasis shifts to the summer driving season from the winter heating (i.e., distillates) season. Gasoline futures gained close to 2%, and crude closed at about $66.50 per barrel (+0.7%).

The Energy sector benefited from the price action and registered a supportive 1.0% gain. At the same time, areas of the market that are especially energy price-sensitive, like transportation stocks and retailers, also rose. On the other side of the commodity board, many metals also advanced. Several, including copper and silver, were at or near historic highs. As a result, related-stocks rose and Materials advanced 1.2%.

As mentioned above, the Tech sector fueled today's market. The tech-heavy Nasdaq, to that point, gained 1.5% and hit a five-year high. Tech areas that were yesterday's laggards were today's legs. Bargain hunters sent semiconductors surging. Hardware also soared. Upgraded Sun Microsystems (SUNW 5.25 +0.22) drove that industry, and a recovery in Hewlett-Packard (HPQ 32.72 +0.65) added momentum.

Not all of HP's fellow Dow components fared as well. General Motors (GM 22.15 -0.60) weighed on the average following its assertion that certain GMAC financial information should not be relied upon and will have to be restated. Questions over whether a sale of a controlling stake in GMAC will occur was not good for that stock. Downgraded Caterpillar (CAT 73.67 -1.20) was another weak blue chip, but upgraded 3M (MMM 77.56 +1.26) shares helped offset its decline within the Industrials sector. Reports that Northrop Grumman (NOC 68.67 +0.73) was awarded a $2.5 billion contract from the Department of Energy lent further upside to that area of the market. Pfizer (PFE 25.24 -0.11) also declined. That stock received some added attention today, due to reports that the company expects to fetch about $14 billion for it consumer products business, for which initial bids were reportedly expected today. It and other drug stocks pressured the Healthcare (+0.2%) sector, but HMOs were an offsetting factor. UnitedHealth's (UNG 55.98 +1.66) reaffirmation of its strong full-year guidance lent a measure of support, and underpinned our favorable view on the industry.DJ30 +61.16 NASDAQ +33.32 SP500 +9.66 NASDAQ Dec/Adv/Vol 849/2227/2.22 bln NYSE Dec/Adv/Vol 922/2381/1.57 bln

days move up as I am.

Buyers dominated the trading action from start to finish. There was not much meaningful news to account for investors' bullish bias. As such, it appeared to be a result of the stock market's hopeful view that the Fed is near the end of its tightening cycle. We don't necessarily concur, however.

I wonder if the blatherer has ever heard of a sucker rally, induced by bargain shopping, and to be erased when day traders decide to cash out quickly.

...This article seems hyped/dubious, but I figured you folks might want to know it's starting to circulate. It claims a two-trillion printing run post-M3-demise and a distraction campaign with the immigration issue.

http://www.dailykos.com/story/2006/3/29/17627/4323