STOCK MARKET WATCH, Wednesday 21 June

10:30 AM Crude Inventories 06/16
Briefing Forecast NA
Market Expects NA
Prior -980K

here's the DOE:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B62874ACA%2D8731%2D4091%2DBE1F%2D0E9C8D6722F4%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The Energy Department said crude supplies rose 1.4 million barrels for the week ended June 16. They total 347.1 million -- their highest level since the week ended May 29, 1998, the report said. Motor gasoline inventories rose 300,000 barrels to total 213.4 million barrels. Distillate supplies rose 1.7 million barrels to 124.5 million. August crude rose 6 cents to $69.40 a barrel. July unleaded gas added 1.44 cents to $2.02 a gallon and July heating oil was at $1.903 a gallon, down 0.44 cent.

and here's the API:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC21D9D65%2D939C%2D4318%2DAEEE%2D26D382727F74%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute said motor gasoline supplies fell 1.9 million barrels for the week ended June 16, contrary to the Energy Department's reported increase of 300,000 barrels. Crude inventories were down 3.7 million barrels. The government report had showed an increase of 1.4 million. Distillate stocks rose 1.9 million barrels, the API said, nearly matching the Energy Department's 1.9 million-barrel increase.

The API is independent of this maladministration and I would take their numbers much more seriously than anything that can be cooked from the current regime.

SINGAPORE - Crude oil futures fell Wednesday as traders waited for the release of U.S. oil inventories and developments in the diplomatic standoff over Iran's nuclear ambitions.

The U.S. Department of Energy's midweek report is likely to show rising gasoline inventories and crude oil stocks flat, analysts predict. Later Wednesday, President Bush was to meet with senior EU officials to discuss efforts to get Tehran to relinquish its nuclear program. Traders worry that Iran could disrupt its oil exports if provoked.

"The market is not particularly bullish or bearish; we're now in a static environment," said Victor Shum, a Singapore-based energy analyst with Purvin & Gertz. "So traders will continue to look for direction."

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SEATTLE - A former federal official, convicted of accepting gratuities from a natural gas company that overcharged the government, received nearly $22,000 in raises while he was under investigation, according to documents obtained by The Associated Press.

William R. Mitten, 56, was removed from his job as director of the National Center for Utilities Management when he came under investigation in November 2001.

But he remained on the payroll, and his salary increased to $93,781 before he retired last December, according to records released under a Freedom of Information Act request.

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Between $69 and $72/bbl.

12:07 PM ET 6/21/06 AUGUST CRUDE TAPS HIGH OF $70.15/BRL IN NY

12:07 PM ET 6/21/06 AUGUST CRUDE LAST UP 56 CENTS, OR 0.8%, AT $69.90/BRL

2:58 PM ET 6/21/06 AUGUST CRUDE CLOSES AT ITS HIGHEST LEVEL SINCE JUNE 12

2:58 PM ET 6/21/06 AUGUST CRUDE UP 99 CENTS TO CLOSE AT $70.33/BRL

2:50 PM ET 6/21/06 JULY NATURAL GAS UP 8.6 CENTS TO CLOSE AT $6.588/MLN BTUS

Modest opening gains for European equities vanished rapidly on Wednesday and bourses extended their losses by mid-morning, amid weakness in the oil, mining and real estate sectors.

The FTSE Eurofirst 300 fell 3.5 points or 0.3 per cent to 1,272.656 while the German Xetra Dax declined 27.9 points or 0.5 per cent to 5,465.99 and the French CAC 40 fell 13.3 points or 0.3 per cent at 4,756.85.

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Falls in export stocks on continued fears about the US economy were counterbalanced on Wednesday by rises in some domestic sectors such as banking.

The Topix fell 0.3 per cent to 1,505.51. The Nikkei 225 stock average ended flat at 14,644.26.

Electrical machinery, transport equipment and precision machinery, all big export sectors, each fell about 0.5 per cent.

Sony (NYSE:SNE - news), the consumer electronics and entertainment giant, continued its slide, falling 1.5 per cent to Y4,770. Toyota (NYSE:TM - news), Japan's biggest carmaker, declined 0.4 per cent to Y5,760.

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

Last trade 85.96 Change -0.01 (-0.01%)

US Housing Telling Of Economy?

http://www.dailyfx.com/story/dailyfx_financial_markets_headlines/US_Housing_Telling_Of_Economy__1150820316065.html

The focus of today’s dollar positioning was the housing market. Though housing starts far surpassed expectations, the read below the commonly quoted 2 million-unit growth mark and another contradictory indicator cooled bullish sentiment. Market reaction to the fundamental update was best read in the FX market where the dollar held around even for most majors by mid-day in the New York session. In the benchmark EURUSD, the pair was gravitating around the 1.2575 level, though it had at one point worked its way down to 1.2540 – some 10 pips from the seven week lows set on the 13th and 14th. Both the pound and franc pairs were similarly contained to their respective ranges, the former being the 100 point spread between 1.8475 and 1.8375 and the latter the more refined 1.2430 - 1.2380 band. Breaking the mold, the Japanese yen was able to push ahead against the greenback due to strong news on its own part. The USDJPY was recently quoted 50 points below Monday’s close with 114.50 support shining in the background.


Economic data was back on the menu Tuesday with the Commerce Department reporting on housing starts and building permits from last month. Taken alone, the starts read was positive, but looking beyond the face value suggests the longer-trend is still in favor of a cooling housing market. The shock-factor for the day was the unexpected 5% jump in housing starts to an annualized 1.957 million units, versus a consensus of a slight increase to 1.867 million. Components of the indicator printed a 2.1% increase in groundbreakings on single-family units and a massive 20% jump in multi-family units. However these numbers seemed to have been artificially boosted by builders turning to their backlogs and special incentives to attract undecided customers. Looking at the actual numbers and growing hurdles for future home purchases provides a more realistic picture. May’s increase was off of a 13-month low, and the less volatile three-month average in starts is currently at its lowest level since the final three months of 2004. For comparison, the monthly average of housing starts in 2005 was a far better 2.16 million starts. What’s more, the future is looking dour for homebuilders. Interest rates have taken a sizable leap in 2-years while wages and hiring trends are trailing off. Lending rates are perhaps the most immediate issue for those looking to break ground, with fixed-rate mortgages reportedly reaching a four-year high 6.67% on June 2nd. Dollar momentum will be hard to come by in the coming days with the economic calendar settling down. The next market worth indicator will be Friday’s durable goods orders.

Equities investors were still shy in taking large positions in Tuesday’s session as the consumer spending boost suggestive of greater home starts was brushed off once again by Fed speculation. The Dow Index took the role as key mover by rising 0.7% to 11,023.57, followed by the 0.6% advance in the S&P 500 to 1,247.10 and a 0.5% rise in the NASDAQ Composite to 2,122.07 by 16:00 GMT. Grocer Kroger Co. was a mover for the session following an announcement of higher first-quarter profits. Shares were 5.5% higher by $1.08 to $20.58. Another firm well entrenched in the green was JetBlue Airways, whose shares were 5.2% or $0.60 higher to $12.30 after receiving an upgrade by analysts who see the potential of the low cost leader in the airline sector.

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Dollar Holds Own In Quiet Trading

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/Dollar_Holds_Own_In_Quiet_1150882572766.html

EUR/USD – EUR/USD has rallied but failed (at least temporarily) at the 61.8% fibo of 1.2670-1.2551 at 1.2624. The move up is corrective in nature as well. The structure is 3 waves up from 1.2540 and oscillators on the hourly are beginning to turn over and head back down. As such, prices appear headed towards today’s low at 1.2577 with a break lower targeting yesterday’s low at 1.2540. Any strength must contend first with the 78.6% fibo of 12670-1.2540 at 1.2642.

<snip>

USD/JPY – The choppy decline to back below the 115.00 handle has resulted in positive divergence with oscillators at today’s 114.50 low – giving scope to another test of the 115.00 handle if the support from the 6/16 low / today’s low at 114.38/55 holds. A break lower probes a tentative trendline at around 114.00. The bearish argument strengthens significantly on a break below the trendline and the next target would then be the 61.8% fibo of 108.96-115.75 at 111.56. Initial resistance is the 6/16 high at 115.18.

<snip>

USD/CAD – USD/CAD rallies continue to fail at a ceiling of resistance near 1.1252 with the most recent attempt yesterday (high at 1.1252). The decline from 1.1252 picked up steam but has stalled at the 38.2% fibo of 1.0960-1.1248 at 1.1138. With a triple top at the 1.1250 area – it appears that probability favors a return to the lower end of the range near the lows from 5/31 and 6/12 at 1.0927/60. Immediate resistance is at the series of daily highs near 1.1250 but a break above there could trigger a massive short covering rally towards the 50% fibo of 1.1771-1.0927 at 1.1348.

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interest rates to attract foreign buyers, now they say too high and it will slow growth and who will want to invest in a slug? Poor, poor Chopper Ben - caught between a rock and a hard place.

Wonder how that engineered crash plan is coming along? :evilgrin:

even though people are no longer buying:crazy:

:donut::hi:Good Morning everyone

mail last week that, once again, our property appraisal (read tax bill) is going up. They just did a walk-through re-assessment 2 years ago. Now they've decided to up the value of the land by 40% - and this is after doubling the value of the land when they did the big walk-through 2 years ago.

Our dream of staying put after retirement is dwindling away as we won't be able to afford the property taxes if this keeps up. :-(

Is the assessment correct?

If so, there a way to cash in now and find a cheap place to spend you retirement?

There are places that are cheaper than others but "cheap" isn't possible anymore.

a new appraisal done to prove they're full of crap. The new land-only assessment was levied on the entire township, so I think it will be pretty hard to fight this one. We'd have to get a majority involved. Their justification is that selling prices continue to rise in the area...we'll yeah that's true enough. But it's these huge McMansions developers are slapping up that are selling. Most of the existing houses in the area are selling below the current tax assessment, though they are listed by realtors with a fair-market value of 20-40K above. We took a 30K loss on the F-I-L's place when we sold it last year. (Actually, that wasn't a bad thing as it helped on the tax return.)

I did fight the reassessment 2 years ago, as we had a recent bank appraisal in hand (from refinancing). Even with that, I could only get them to split the difference. Still better than the hit we would have taken without fighting.

We're still a few years away from retirement, so to cash in now, and have to find someplace else to live (at these inflated prices) doesn't seem feasible. No way I could get hubby to go and rent a place. Besides, he built this joint some 30 years ago, built his woodworking shop a few years back - which is where he wanted to spend his days in retirement. We've done some updating and decided to make things handicapped accessible as long as it was ripped apart anyway. Down the road, when we're old and the winters become unbearable, I might be able to persuade him to move. But you've got to understand, he was born and raised in this little township - it's going to be a pretty hard sell.

maybe your taxes will go down again when the bubble bursts.

sible to protect land now, the prices are so high. People who want to protect their land have to sell out to the richies becasue they can't afford to pay the taxes.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD1A5DFC9%2DBA22%2D43E3%2DB1F3%2D56900E0D7EB4%7D&siteid=mktw&dateid=38889%2E3739726273%2D878193543

NEW YORK (MarketWatch) - Goodyear Tire & Rubber Co. (GT) said Wednesday it would exit part of the private label tire business in North America that accounted for $300 million in revenue, or about 8 million tires. "While our branded replacement business remains strong, the overall environment, including a very weak industry and continued raw material price escalation, likely will result in full year operating income for North America below 2005 levels," said Jonathan Rich, the president of Goodyear's North American tire business.

8:47am 06/21/06 Goodyear sees N. America year operating profit down - MarketWatch.com

8:46am 06/21/06 Goodyear to exit units accounting for $300M sales - MarketWatch.com

8:47am 06/21/06 Goodyear to reduce tire-manufacturing capacity in N. America - MarketWatch.com

8:46am 06/21/06 Goodyear to exit parts of private-label tire business - MarketWatch.com

behind the scenes in this whole NK missile testing. Looks like Shrub's incompetent management style has struck again. It appears to be that "business school mentality" again - mediocrity is good enough.

U.S. still working kinks out of defense shield

http://www.usatoday.com/news/washington/2006-06-20-missile-defense_x.htm

WASHINGTON — As the Bush administration warns North Korea not to test a long-range missile, the U.S. missile-defense system remains a patchy and unproven shield, government studies and outside experts say.
President Bush ordered the Pentagon to start fielding prototype anti-missile rockets in 2004 to have at least some chance of destroying an intercontinental missile heading for the USA. Although there are 10 of those interceptors on bases in Alaska and California, their hurried deployment prevented complete testing and contributed to technical glitches and manufacturing problems, congressional investigators reported this year.

snip>

The Pentagon now spends about $8 billion a year toward development of a network of systems designed to destroy enemy missiles, particularly those from Iran and North Korea. One of the most developed parts of that system is the handful of ground-based missile interceptors at Fort Greely in Alaska and Vandenberg Air Force Base in California.

snip>

Air Force Lt. Gen. Henry Obering, the Missile Defense Agency's commander, told the Senate Armed Services Committee in April that he was confident the interceptors still provided "an initial defensive capability" despite the manufacturing problems blamed for the aborted tests. He said he had suspended testing and reviewed the program because of the failures.

snip>

Philip Coyle, a longtime critic of the missile-defense program, said there's no firm evidence the interceptors would work against a North Korean missile. If North Korea test-fires a missile to the south, it would be out of range of the system anyway, said Coyle, a former director of weapons testing for the Pentagon.

"Suppose North Korea launches a missile and the MDA tried to shoot it down, and like in some of the recent tests, it failed," Coyle said. "It would be totally embarrassing. It would cause a huge uproar in Congress."

The ground-based missile-defense component was over budget by more than $365 million last year and delivered fewer interceptors than planned without proof they would work, according to a review by the Government Accountability Office this year. Inadequate oversight could have allowed some shoddy parts to be installed in the interceptors, the report said.

more...

http://www.321gold.com/editorials/daughty/daughty062106.html

-- I don't know if I am just confused as usual, but I am unsure whether last week's $4.6 billion drop in Total Fed Credit is cause for celebration (that the Fed has stopped acting like profligate monetary morons) or panic (that the economy is now totally dependent on the Fed acting like profligate monetary morons).

snip>

And I notice with a grim Mogambo frown (GMF) on my stupid face that Required Reserves in the banks actually went down to the bottom of its range for the last zillion years or so. Hell, picking a date in random, say, in May 1995, which was eleven long years ago, total deposits in the banks ("savings") were only around $110 billion, and total Loans and Leases on the books of the banks logged in at only $204 billion. And against that, the banks were saddled with $57 billion in Required Reserves.

snip>

The scene is now perfectly set to reveal the ugly fact that Total Deposits at the banks are up to $5.2 trillion, which is 47 times bigger than it was in 1995. That's a growth rate of 42% a year, compounded! And total Loans and Leases is now $5.7 trillion, which is 27 times bigger than in 1995, which works out to an annual growth rate of 35% a year! Big, BIG increases!

Yet against that monstrous, cancerous rise in both assets and liabilities, the Required Reserves went DOWN from $57 billion in 1995 to only $42 billion today in 2006! Hahahaha! Surprise! Down! Required Reserves went DOWN! Hahahaha! To keep the same 0.518 ratio of Required Reserves against total deposits in the banking system in 1995, the banks would have to have, right now, in Required Reserves, $2.693 trillion! Instead, they have only $42 billion, 1.6% as much! Hahahaha!

snip>

-- Fannie Mae, which has turned into a gigantic cesspool of corruption, lying and deceit, has already admitted to $11 billion in "mistakes", mostly tied to the managers massaging the books to award themselves outlandish bonuses while hijacking the majority of the American mortgage market. Beyond the fact that it IS bad, it also LOOKS bad, according to Alex S. Gabor, who is a freelance writer appearing on OpEdNews.com. He opines that "Allowing Fannie to continue to trade tells the rest of the world that the corruption is not yet over. America has gotten so fat it cannot reach around and clean up its own messes without keeling over." Hahaha! Well put!

more...

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BF30C7462%2DDF97%2D47FE%2D83CC%2D17729C9824DB%7D&symbol=

excerpt:

I've long opined that our Federal Reserve must make a choice between a strong dollar and firm asset classes. That script is being screen tested each day as we sift through the other side of globalization.

While I was quite cautious into the May 10 FOMC meeting, I've been buying dips in the metal and energy complex and balancing my portfolio with a spate of autumn puts in the financial sector.

For those with an active eye, I've set my short side "stops" for the Philadelphia Bank Index (BKX) above 108 and for the Amex securities broker/dealer index (XBD) above205, which is technical resistance for the banks and brokers. The risk to that approach is that charts often take a back seat to structural forces when the wheels fall off the wagon. Indeed, if we're to assimilate the four primary metrics of fundamentals, structural, technicals and psychology -- in the context of a bubble of hedge funds chasing quarter-end performance -- it's quite possible that the path of maximum frustration will flummox those reliant on traditional trading approaches.

I won't pretend that all is well in the world or that the worst is behind us. I'm simply looking to shake shekels from the tree and pocket them before the Phantom returns to his rightful home. Who is this Phantom I speak of and what does he want? For me, it's a simple yet unpleasant answer, the type of discussion that nobody wants to have until we actually see his shadow. He is Deflation; painful, all-consuming, watershed Deflation. While the mainstream media continues to monitor inflationary pressures---and yes, this exists in some corners of the economy -- this particular Phantom won't discriminate between victims. The weakness we've seen is the probability of this demon being priced into the collective mindset.

To make intelligent and proactive financial decisions, we must assimilate the entire spectrum of potential outcomes. With all the misinformation, misdirection, confusion and doubletalk prevalent in so many circles, it's no surprise that investors are confused by the world around us. I'm unsure of how, when or if the dreaded Phantom will emerge -- or if he already has -- but I, for one, prefer to prepare for his potential arrival. How, you ask, can we ready ourselves for the worst while respecting the likelihood that we'll toggle rather than tip? Capital preservation, limited (if any) debt and a mindful consciousness that by the time the answer becomes clear, the ramifications will already be priced into financial assets.

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http://www.321gold.com/editorials/willie/willie062106.html

Don't look now, but a dilemma faces almost every single policy maker on the planet, and some tyrants roaming the planet. A few tyrants have no dilemmas like Putin in Russia, Chavez in Venezuela, and the faceless Sudanese dictator; they continue to rampage and pillage. Morales in Bolivia already made his decision; his die is cast. A fork is presented in the road in at least five power centers globally. As anyone with a sense of odds, chance, gambling, or probability knows, each fork has two choices. That makes for a great many combinations of directions, 32 actually (two to the power five). No analysts worth their salt can competently put forth a forecast without contingencies and various scenarios. No one power center make can be deemed more important than another. They are all critical. As one center takes action, other centers respond or join in a similar action. The entire globe is stretching and heaving. Financial tectonic plates shift.

US Federal Reserve
The US Federal Reserve must make a choice. Continue to hike rates in order to support the USDollar with maintain the advantageous bond yield? Continue to hike rates in order to attract foreign USTreasury Bond purchasers in incremental credit supply? Doing so places considerable stress on the housing market. Is their true motive to appeal to bond and currency traders in foreign locations? Or is their attention more on domestic price inflation and fighting expectations? Does the USFed plan to destroy the world economy in order to be regarded as credible in their fight of inflation? This sounds like a strange question to begin with, since their reason for being (raison d'être) is to provide, create, and manage monetary inflation. It is like asking a farmer to limit the effects of food production. Should the USFed permit Weimar inflation rather than suffer the shameful outcome of a gathering global recession instead? Are the financial leaders and central bankers aware that the USEconomy is nothing but a gigantic bubble, vulnerable to higher rates? To tighten this economy on its inflation sustenance is to restrict its primary blood supply. It is wholly dependent upon inflation, and little else.

Given that the Gross Domestic Product contains a 5% exaggeration, USGovt official statistics are full of propaganda about growth. Almost all, perhaps all, of US GDP is improperly adjusted price inflation. How can we stand by and nod our heads that the CPI contains a 3% fudge, yet accept the GDP as an accurate number? This is not possible. The GDP contains the further exaggeration owing to a 1% fudge from the GDP Deflator being lower than the absurd CPI. Not a single analyst who writes on the planet ever talks about the obscure GDP Deflator. The other 1% is from the foolish hedonic adjustments for greater speeds in information technology (which permit more daydreaming at the desk, and idle time for commercial applications of equipment). Does any computer operate around the clock? Do workers ply their trade without pause? So therefore, a theme of my scribbles for three years, the USEconomy has been in a stall for five years. Check the 4Q2005 for evidence. Gasoline, diesel, crude oil, and natural gas prices zoomed up in the wake of the hurricanes. Complaints were lodged for inadequate response by USGovt relief operations. Sales and economies in the entire Gulf Coast region were shut down, stopped cold. Initial economist estimates called for a 1% decline in GDP from the storm damage. Yet the GDP rose??? NOT A CHANCE, pure b.s.

One must conclude that the USFed is hiking rates in the middle of a stall. Claims of 5% GDP growth are pure poppycock and fantasy. But in any mythology, fantasies prevail. What this writer analyst finds astonishing is that even the gold community accepts the nonsensical GDP numbers. At the Vancouver gold conference in mid-June, my ears heard at least five speakers cite strong US growth, the world's strongest growth. It is pure deception, distortion, delusion, built upon lies. They comprehend most lies in statistics, but not in the GDP, which is an inconsistent observation. Crises occur when policy is ineffective, as accidents wreck havoc. Gold will benefit when the crises happen more often and with shorter time intervals between them.

One can safely say that US banking leaders are like a bunch of captains with a poor past job history controlling the bridge of a once great ship USS America. They stand as arrogant blind lunatics at the helm reading faulty control instruments on the bridge. Their instruments are designed to placate, not guide. They urge on business, much like the sale of ship passage tickets, rather than to warn properly. Icebergs lie ahead. As recently as year 2000, icebergs were hit. It is worse than described. Credible arguments can be made that some icebergs are intended to be hit. Accidents are planned. You see, the USGovt sells the lifeboats. They are called US Treasury Bonds. A perverse desire persists, that the lifeboats not become too expensive. There must be sufficient accidents so that the price of lifeboats do not fall too low. By killing off stock investors aboard the USS America, they are directed into the lifeboats. Worse still, they might find it preferable to return to rationing and allow some "economic dead zones" (like an array of icebergs) so long as prices remain low, inflation not rage, and lifeboats remain in demand. Isn't that right out of the wartime playbook too?

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:evilfrown:

http://www.nypost.com/business/superrich_go_global_and_leave_u_s__lagging_business_tom_bawden.htm

June 21, 2006 -- The world's wealthiest citizens are pulling their cash out of the U.S. and plowing it into emerging market economies such as India, China and Brazil instead.

snip>

The world's high-net-worth individuals - those with at least $1 million in assets, excluding their main house - "are increasingly showing a preference for international investments and lifestyles, which will intensify," said Merrill Lynch head of private clients Eva Castillo.

The U.S. still accommodates the largest portion of the world's wealthiest, accounting for 2.9 million of the 8.7 million megawealthy worldwide - who saw their collective worth rise 8.5 percent to $33.3 trillion last year. Europe is home to 2.8 million and the Asian-Pacific region to 2.5 million of the superrich.

While the U.S. still claims first place, it is rapidly losing ground to moneybags in emerging markets.

The superrich here are losing out on bigger gains because they tend to invest a much higher percentage of their cash in U.S. markets than their international peers, according to the survey.

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Doesn't that sort of read like a Carnival Barker? Looking for new sheep to fleece? :shrug:

http://news.bbc.co.uk/2/hi/business/5099680.stm

The world's wealthiest continue to grow richer, with research showing that there are now nearly nine million millionaires around the world.
About 8.7 million people held $1m in assets in 2005, 6.5% up on 2004, according to investment bank Merrill Lynch and consultants Capgemini.

Between them, global millionaires owned $33.3 trillion (£18tn) in net assets.

South Korea saw the biggest rise in millionaires last year, with their ranks swelling by 21%.

In contrast, the number of new US millionaires slowed as high oil prices and rising interest rates hit stock market returns.

more...

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B62874ACA%2D8731%2D4091%2DBE1F%2D0E9C8D6722F4%7D&siteid=mktw


We were at an 8-year high a couple of months ago.

:headbang:

:sarcasm:

Time running out for government agency as firms drop retirement payouts

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B59A7B7B5%2DADFC%2D4F9F%2D89BF%2D7A705F28F3F5%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

SAN FRANCISCO (MarketWatch) -- In 2002, a bankrupt Bethlehem Steel stunned 100,000 workers with the news it would no longer back their pensions.

It was the biggest default in a brutal year during which companies dropped responsibility for 157 pension plans onto the Pension Benefit Guaranty Corporation, the little-known federal agency that insures private retirement packages.

The trend has since accelerated. Another 467 companies, including giant employers like United Airlines, have joined those who can't -- or won't -- honor pledges to retirees.

In just four years, the number of monthly checks PBGC sends to retired workers has swelled from 344,770 to 683,000, doubling annual payouts from $1.54 billion to $3.69 billion and turning the PBGC's budget from a tidy $10 billion surplus in 2000 into a $23 billion deficit last year.

The growth in PBGC obligations is under sharp attack from union leaders, who see it as an assault on Corporate America's long-standing pact with employees, and has raised alarms in Washington over who is going to pay for this.

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for the day?

Buy, Buy, Buy like there is no ending in site. Charts are going crazy some of them are showing that things are WAY WAY WAY over bought, is this a product of good earnings? or just sentiment of the market?

When I think of this I think of the kid who pisses in the wind, yeh he may start off pissing just fine, but the longer he tries to fight the wind the more chances he has of getting his piss all over himself, and he usually does.

Good thing I stayed out today cause I don't want to goto dinner later stinkin like piss.

I am thinking that the DJIA will not be able to maintain this for the rest of the day, however the DJIA should pose a respectable gain of about 40-80 points for the day. ;)

Maxed out my Roth today, but since I use mutual funds I'll have bought in at the closing price...so if I can save a few cents :D

I've been hearing on CNBCthat if it closes above 11,050 (why 11,050 I didn't catch) there's a good chance it will hold for a while.

:toast:

I just looked at the DJIA historical chart for the last 6 months to a year and the 11050 mark decently solid for a few reasons.

1) it is a good round number

2) there are several points of former resistance/support ranging in the 11040 - 11060 marks. This may be what they are looking at.

I would be interested to see what their definition of a "while" is. Seems like with how this summer is shaping up along with the Fed announcements that the major indexes will be trading down lower than this in a little "while".

Kudos once again on your successful day :toast:

We'll see. I was kind of hoping to be maxed out while things were under 11,000, but the money took too long to get from one account to another goshdarnit. But better late than never.

At the very least, I don't have to worry about it for the rest of the year.

Dow 11,126.61 +151.77 (+1.38%)
Nasdaq 2,147.47 +40.41 (+1.92%)
S&P 500 1,256.69 +16.57 (+1.34%)
10-Yr Bond 5.151 -0.06 (-0.12%)

NYSE Volume 1,145,209,000
Nasdaq Volume 870,415,000

12:00 pm : Onward and upward remains the driving mantra midday as some reassurance that profitability (so far) is holding up despite rising interest rates questions whether or not stocks are still oversold on a short-term basis.

Before the bell, Morgan Stanley (MS 59.73 +2.71) reported that Q2 net income more than doubled, which underscores our favorable opinion on the brokers, while FedEx (FDX 113.21 +4.89) said Q4 earnings grew 27% year/year, playing into our Overweight rating on Industrials. The duo of better than expected reports have kicked off an otherwise quiet session initially plagued again by the lack of notable economic data and scheduled Fed speak to offer some clarity on Fed policy -- the market's main concern heading into next week's FOMC meeting and another expected rate hike.

Notwithstanding the macro-economic worries that continue to act as an overhang and play into our Neutral market view, bargain hunters have come out in droves today, scooping up bargains in underperforming sectors like Technology, as evidenced by the tech-heavy Nasdaq outpacing its blue chip counterparts to the upside, Health Care and Materials. All 10 economic sectors are trading higher amid strength in nearly all 147 SnP industry groups. Even though oil prices at session highs do not bode well for the consumer, investors are back to focusing on the possibility that higher oil may result in more record earnings for the Energy sector. Crude oil futures are up 1.1% at $70.10 per barrel following a smaller than expected rise in weekly gas supplies and more abductions in Nigeria.

The major indices breaking through key resistance levels underscores the extent of the market's upside momentum, as the Dow, SnP 500 and the Nasdaq are averaging a 1.3% gain. It is worth noting, though, that below average volume thus far is lending little conviction behind today's broad-based relief rally. DJ30 +128.79 NASDAQ +34.91 SP500 +13.46 NASDAQ Dec/Adv/Vol 712/2124/783 mln NYSE Dec/Adv/Vol 686/2400/699 mln

11:30 am : Market regains some momentum, spearheaded by further appreciation across every Technology industry group. The semiconductor and software groups continue to chip away at their respective year-to-date declines of 7.0% and 8.8%; all 19 components on the PHLS Semi Sector (SOX +2.2%) are trading higher while 39 of the 42 components that make up the GSTI Software Index (GSO +2.3%) are posting gains. Leading Computer Hardware (+1.6%) and Networking (+2.1%) indices are also surging. DJ30 +108.86 NASDAQ +31.97 SP500 +12.33 NASDAQ Dec/Adv/Vol 848/1888/652 mln NYSE Dec/Adv/Vol 764/2266/580 mln

have a TRUE rally along with TRUE follow through days

It is worth noting, though, that below average volume thus far is lending little conviction behind today's broad-based relief rally.


this is the one question that I wanted answered when I saw the charts rocket skyward, now I know this is a Bullshit rally - thanks UIA

insert smily guy rolling around in $$$$