STOCK MARKET WATCH, Friday October 26

Source: du

STOCK MARKET WATCH, Friday October 26, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 452 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2477 DAYS
WHERE'S OSAMA BIN-LADEN? 2197 DAYS
DAYS SINCE ENRON COLLAPSE = 2158
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES

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AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON October 25, 2007

Dow... 13,671.92 -3.33 (-0.02%)
Nasdaq... 2,750.86 -23.90 (-0.86%)
S&P 500... 1,514.40 -1.48 (-0.10%)
Gold future... 771.00 +5.40 (+0.70%)
30-Year Bond 4.66% +0.01 (+0.30%)
10-Yr Bond... 4.35% +0.02 (+0.48%)






GOLD, EURO, YEN, Loonie and Silver

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PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact actionpost@legitgov.org

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

Stock Market - Update
BY FRANK BARBERA, CMT

At the present time, the S&P 500 is somewhat mildly oversold near term, and could be near another short term low. The 9 day RSI for the S&P reached down to a low value, below +30 earlier this week with the S&P holding support near the 50 day moving average and the 20 day lower Bollinger Band (1503). That said, it is important to remember that in emerging Bear Markets, Rule #1 is that surprises come to the downside. Now, we know that there are those who would disagree with our assessment that the S&P is in a bear market. A bull could still point out that the 200 day moving average is still rising, and therefore, that the primary trend of the market is still higher. They would be right, as at the moment, the evidence within the stock market really points to a grand transition phase and the presence of an emerging stealth bear market. In our experience, these types of conditions are usually the hallmark of a stock market that is moving into a full on bear, but the proof of that still waits to be seen in the weeks and months ahead.

-cut-

In addition to the obvious bearish divergences between the averages, we can also point out that with even the Dow Jones Industrial Average, overall participation in the advance has been thinning. For example, when the Dow went to new all time highs in July, nearly 86% of the DJIA 30 stocks were above their own 200 day moving averages. Flash forward to September and the latest round of new highs on the DJIA, and only 73% of the stocks were above the 200 day average. Looking at the other two averages, the Transports and the Utilities through this lens, we see that with DJIA hitting new all time highs in September, LESS than 50% of the DJTA average stocks were even above the 200 day average. Ditto the 15 DJ Utility stocks where more then half the list was below the 200 day average. We don’t know if that degree of failure has ever been seen before, but it certainly suggests that the market notwithstanding the CNBC Bobble-head cheerleading is not in good shape technically.

-cut-

Elsewhere, we also want to point out that over the last two years, the US Railroad Industry has thrived as a result of US-China Trade. Over this time, railroads were seen as the extension of the ports, which they are, and move to P/E multiples not seen in years. In many ways, the rise in China as measured by the surging Shanghai exchange has been paralleled by the recovery in US Railroad fortunes. If demand is dropping off in the US as a result of a consumer led recession, then perhaps the recent downturn in the Transports, and especially the Rails, is an ominous sign for the fortunes of the Chinese Stock market, as the US Consumer has been a key source of aggregate demand. In addition, the Shanghai Stock Exchange, which has unquestionably held up longer than we ever imagined, appears to have completed its five wave advancing pattern, but to be sure, we need to see another three to four percent decline. The momentum profile on Shanghai looks very bearish in our view, and a break in the Asian stock markets where we have seen a speculative mania would be a very big negative for other global markets, including the US.

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

10:00 AM Mich Sentiment-Rev. Oct
Briefing Forecast 82.0
Market Expects 82.3
Prior 82.0

http://biz.yahoo.com/c/e.html

01. UMich Oct. consumer sentiment below 82.0 forecast
10:02 AM ET, Oct 26, 2007 - 1 minute ago

02. UMich Oct. consumer sentiment 80.9 vs 83.4 in Sept
10:01 AM ET, Oct 26, 2007 - 2 minutes ago

:wow:

Or is this not the same 'rosy picture' group that has been surveyed in the past...

BANGKOK, Thailand - Crude oil prices rose in Asia Friday — spiking above $92 a barrel at one point — on a rumbling of tensions in the Middle East and renewed concerns about oil supplies.

-cut-

Light, sweet crude for December delivery rose $1.26 to $91.72 a barrel in electronic trade on the New York Mercantile Exchange by late afternoon in Singapore. It briefly rose to a new trading record of $92.22 during Asian trading.

The Nymex crude contract jumped $3.36 to settle at $90.46 a barrel Thursday in the U.S., closing above $90 a barrel for the first time.

-cut-

On Thursday, Organization of Petroleum Exporting Countries Secretary General Abdalla el-Badri told The Wall Street Journal Asia the cartel is not in discussions to boost production by 500,000 barrels. The comments counter rumors that Saudi Arabia is pushing for another production increase after pressuring the group into one of similar size that goes into effect Nov. 1.

And while U.S. crude stocks fell to a nine-month low last week, Dow Jones Newswires reported that Oil Movements, a company that tracks oil tanker traffic, said the extra crude shipments from OPEC members next month will grow more slowly than anticipated.

http://news.yahoo.com/s/ap/oil_prices

NEW YORK (Reuters) - Bank of America Corp (BAC.N) on Thursday said it will stop offering home mortgages through brokers by the end of the year, resulting in a loss of 700 jobs, so that it may focus on lending directly to consumers.

The job cuts are part of the 3,000 that the second-largest U.S. bank announced on Wednesday, after a poor quarter in investment banking led to a larger-than-expected 32 percent drop in quarterly profit.

"We believe our long-term opportunity lies in maximizing our more competitive retail channels," Floyd Robinson, who runs the bank's consumer real estate operations, said in a statement.

The cuts affect about 5 percent of the bank's 13,000 employees in consumer real estate.

http://news.yahoo.com/s/nm/20071025/bs_nm/bankofamerica_mortgages_dc

Film at 11.

http://news.yahoo.com/s/nm/20071026/bs_nm/countrywide_results_dc_6


By Jonathan Stempel
1 hour, 6 minutes ago



NEW YORK (Reuters) - Countrywide Financial Corp (CFC.N) posted a $1.2 billion third-quarter loss on Friday, but its shares soared after the largest U.S. mortgage lender forecast a return to profit this quarter and said it has weathered the worst of the nationwide housing downturn.

Shares of Countrywide surged as much as 24.7 percent on growing investor confidence the company can regain equilibrium after a mortgage crisis that some critics say it helped create. The outlook helped push broader stock market indexes higher.

Countrywide's quarterly net loss totaled $2.85 per share. It was the company's first in 25 years, and reflected about $2.9 billion of write-downs and credit losses. A year earlier, profit totaled $647.6 million, or $1.03 per share.

The company wrote down $1 billion related to capital market disruptions. It set aside $934.3 million for credit losses, up 2,359 percent from a year earlier, as more borrowers fell behind on payments, particularly on adjustable-rate and home equity loans. Other credit costs totaled $981 million.

"They took their medicine decisively," said Howard Shapiro, an analyst at Fox-Pitt Kelton Cochran Caronia Waller LLC.

Countrywide also took a $57 million charge for an expected loss of 10,000 to 12,000 jobs. It expects $70 million to $90 million of additional restructuring charges.

Analysts on average expected a loss of $1.65 per share, according to Reuters Estimates.

Results reflected "unprecedented disruptions in the U.S. mortgage market and the global capital markets, as well as continued weakening in the housing market," Chief Executive Angelo Mozilo said in a statement.

Countrywide shares were up $1.82, or 13.9 percent, at $14.89 in morning trading, after earlier rising to $16.30.

Through Thursday, the shares were down 69 percent this year. They were also down 40 percent since it received a $2 billion injection from Bank of America Corp (BAC.N). Scott Silvestri, a bank spokesman, declined on Friday to comment.

THIRD-QUARTER WAS "EARNINGS TROUGH"

Countrywide said the third quarter represented an "earnings trough." It projected fourth-quarter profit of 25 cents to 75 cents per share, and a profitable 2008, with a 10 percent to 15 percent return on equity. It also said it has negotiated $18 billion of "highly reliable" new liquidity.

"There was so much negative sentiment that a whiff of anything positive would help the stock," said Stuart Plesser, a Standard & Poor's equity analyst. "It still has to worry about liquidity, though it has improved. A big concern remains how much it may need to set aside for credit losses in the future. That will depend largely on housing prices."

Calabasas, California-based Countrywide joins many other financial companies to report write-downs for subprime and other mortgages, including Citigroup Inc (C.N), Merrill Lynch & Co (MER.N) and Washington Mutual Inc (WM.N).

To cope with the housing downturn, Countrywide has stopped making many risky loans, and has focused on smaller but less profitable loans that Fannie Mae (FNM.N) and Freddie Mac (FRE.N) will buy. It has also shifted most lending to its bank unit, allowing it to tap a wider array of funding sources.

S&P credit analysts downgraded Countrywide one notch to "BBB-plus," a low investment grade, citing the weak housing market and potential for more loan losses in 2008.

Pre-tax losses totaled $1.31 billion in mortgage banking, $407 million in banking and $344 million in capital markets. Insurance operations generated a $150 million profit.

SEC PROBE

Critics fault Countrywide for being in part responsible for the housing slump by extending credit too readily earlier in the decade, in the pursuit of profit and market share.

Members of Congress are proposing legislation to weed out excesses in the $2.3 trillion U.S. mortgage industry, and give new rights to borrowers stuck with unaffordable loans.

Countrywide, for its part, this week offered to refinance or modify $16 billion of adjustable-rate mortgages to help borrowers struggling to make payments as rates reset.

Mozilo, who co-founded Countrywide in 1969, faces growing calls to step aside from shareholders. He has also been under fire for accelerating the sale of his Countrywide shares as the housing market was cresting, realizing more than $100 million of gains. The U.S. Securities and Exchange Commission is reportedly examining the sales. Mozilo has denied wrongdoing.

CtW Investment Group, which represents union pension funds, last week demanded the removal of Mozilo, and is seeking shareholder input on board seats. It did not immediately return a request for comment.

(Additional reporting by Karen Brettell and Dan Wilchins)


ANY BETS ON A "RELAPSE" AND MORE MEDICINE-TAKING?

https://ecf.pawb.uscourts.gov/cgi-bin/login.pl?112209103937901-L_565_0-1

That is a restricted site and you may not be able to access it, but basically what the Trustee wants is Countrywide to pay for the cost it will take her to sue Countrywide for the accounting Countrywide should have done under the Chapter 13 plan (This Chapter 13 is for a individual unrelated to countrywide except countrywide holds the Mortgage to the house). This includes amounts sent to Countrywide for both pre-petition and post-petition debts.

If this is occurring is a Chapter 13 case dating form 2004, how good is the record keeping at countrywide.

AIG may take $9.8 bln subprime hit, analyst says
American International Group's losses estimated to be big, but manageable

http://www.marketwatch.com/news/story/aig-may-take-98-bln/story.aspx?guid=%7B7D2129DC%2DFAC3%2D416C%2DBBF3%2D41F67B8AE3A1%7D

CENTRAL ISLIP, N.Y., Oct. 25 (AP) — Two former top executives of DHB Industries, the leading supplier of body armor to the United States military, were indicted Thursday on charges of insider trading, fraud and tax evasion, federal prosecutors said.

David H. Brooks, 53, the former chief executive of DHB, and Sandra Hatfield, 54, the former chief operating officer, were charged with manipulating DHB’s financial records to increase earnings and profit margins, in that way inflating the price of DHB’s stock.

The former executives are accused of falsely inflating the value of the inventory of DHB’s top product, the Interceptor vest, to help meet profit margin projections. The vest, designed to withstand rifle fire and shrapnel, was made for the Marine Corps and other branches of the military.

http://www.nytimes.com/2007/10/26/business/26trading.html?_r=1&ref=business&oref=slogin

06:21 ET
S&P futures vs fair value: +2.0. Nasdaq futures vs fair value: +21.0.

:donut: :donut: :donut:

I have to arrive at work early today. So I'll check back when the day is done.

Ozy :hi:

therefore I predict a bright sunny day at the casinos. :toast:

Julie

:donut: and lurkers. Julie, I think you are on to something. The worse the news is for us-the middle class- better the markets seem to do. I guess the markets won't be completely happy until the entire middle class is stripped of all their wealth and residing in RV's on a Wal-Mart parking lot (idea shamelessly stolen from Derf City cartoon).

I happened to be polled the other day by poll point. I don't know them or who uses their polls. Usually you get polled on shopping (which is funny considering me). But this last time I was polled on politics. Aside from letting Bush and the GOP have it with both barrels-they also ask me about the economy in my area. They ask me which company I admired (Costco)and why. They asked about things to improve economy (get out of Iraq, re institute estate tax, eliminate AMT, stop the printing presses). I think I was pretty specific. My consumer sentiment is so low I don't think it can get any lower or be measured. I wonder where this info goes.

Happy hunting and watch out for the bears.

If we don't own an RV, would Wal-Mart let us put up tents in their parking lots?



:evilgrin:

:o

:rofl:

ass fault...the grammer police are prepare to write a ticket:fingerwag:

They'll never take me alive! ;)

:donut:

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

Last trade 77.112 Change -0.133 (-0.17%)

EURUSD Short Positions Fall by 10 Percent on Stop-loss Liquidation

http://www.dailyfx.com/story/special_report/special_reports/EURUSD_Short_Positions_Fall_by_1193323099243.html

The ratio of long to short positions in the EURUSD stands at -2.55 as nearly 72% of traders are short, according to our real-time survey on the positioning of more than 20.000 traders. However, retail has been buying back the EURUSD, mostly on stop-loss liquidation (short positions are 10 percent weaker since last week). When retail is short but reduces its exposure, the long term direction remains bullish but the market might have some downside in the short term. Still, the SSI gives us a medium strength signal to BUY EURUSD and we believe the euro could test 1.45 in the week ahead.





...more...

US Dollar Nears Record Lows As Durable Goods Orders Plummet

http://www.dailyfx.com/story/bio1/US_Dollar_Nears_Record_Lows_1193350587850.html

The US dollar barely missed hitting record lows against the Euro today and traded down across the majors as Durable Goods Orders were released at a much weaker-than-expected -1.7 percent. In fact, estimates had been for a 1.5 percent rise on the back of transportation gains as Boeing reported stronger orders during September. Looking at the less volatile component that excludes transportation was a bit more optimistic, as orders for durable goods rose a mild 0.3 percent while nondefense capital good excluding aircraft – a leading indicator for business investment – rose 1.0 percent. Later in the morning, New Home Sales for the month of September looked, on the surface, like a surprisingly strong figure. Indeed, the index rose 4.8 percent in September from the month prior to 770K while supply levels fell back to 8.3 months and median prices jumped to $238,000 from $232,100. Sounds great, right? Wrong. A deeper look into the data shows that these “improvements” came simply because the revisions were so much lower for prior months – specifically August – that it made the September data look positively radiant. The August reading was amended to reflect that new home sales dropped to a nearly 11 year low of 735K while supply levels were revised all the way up to 9 months. Why all of these revisions? The new home sales report is based off of contract signings, but revisions come into play when cancellations occur before the actual closing if, for example, the homebuyer can’t get approved for the financing. As a result, it’s pretty clear that this report is unreliable as a gauge for the status of the housing sector given the amount of adjustments made to the index. Fed fund futures continue to price in an 86 percent chance of a 25bp cut on October 31st, and with the housing sector still deteriorating and US equities teetering at current levels (the DJIA and S&P both closed little changed for the past two days), the FOMC is likely to follow the market’s lead and take the benchmark lending rate down to 4.50 percent next week.

Commodity Dollars Push To Multi-Year Highs As Oil Hits New Record Above $90/bbl

The commodity dollar gained steam yet again on Thursday as crude oil prices rocketed 3.9 percent higher to close at a record of $90.46/bbl amidst news of new US sanctions against Iran and warnings of an attack on Kurdish militants by Turkey. In fact, USDCAD stretched lower to hit a fresh 31-year low of 0.9612 while AUDUSD jumped to 13 year highs of 0.9090. Not to be forgotten, NZDUSD edged above the 0.7600 level as the RBNZ policy statement indicated a somewhat hawkish bias. Nevertheless, with interest rates at a record high of 8.25 percent, the probabilities of another rate increase are negligible in the near term. The RBA, on the other hand, does have the potential to hike in the near-term, and speculation is mounting that they will tighten policy at their November meeting before the Federal Elections on November 24th.

...more...

Last trade 77.012 Change -0.233 (-0.30%)

Low 77.008 2007-10-26 08:47:11, 30 min delay
http://quotes.ino.com/chart/?s=NYBOT_DX&v=i

:wow:

Last trade 76.996 Change -0.249 (-0.32%)

Settle Time 15:00 Open 77.272

Previous Close 77.245 High 77.301

Low 76.980 2007-10-26 11:04:31, 30 min delay

52wk High 86.07 52wk High Date 2006-10-27

52wk Low 77.093 52wk Low Date 2007-10-22

:eyes:

Low 76.977 2007-10-26 14:23:27
http://quotes.ino.com/chart/?s=NYBOT_DX&v=i

not unlike this.

courtesy of Lynyrd Skynyrd

Whiskey bottles, and brand new cars
Oak tree you're in my way
There's too much coke and too much smoke
Look what's going on inside you
Ooooh that smell
Can't you smell that smell
Ooooh that smell
The smell of death surrounds you

Angel of darkness is upon you
Stuck a needle in your arm
So take another toke, have a blow for your nose
One more drink fool, will drown you
Ooooh that smell
Can't you smell that smell
Ooooh that smell
The smell of death surrounds you

Now they call you Prince Charming
Can't speak a word when you're full of 'ludes
Say you'll be all right come tomorrow
But tomorrow might not be here for you
Ooooh that smell
Can't you smell that smell
Ooooh that smell
The smell of death surrounds you

Hey, you're a fool you
Stick them needles in your arm
I know I been there before

One little problem that confronts you
Got a monkey on your back
Just one more fix, Lord might do the trick
One hell of a price for you to get your kicks
Ooooh that smell
Can't you smell that smell
Ooooh that smell
The smell of death surrounds you
Ooooh that smell
Can't you smell that smell
Ooooh that smell
The smell of death surrounds you

:applause:

Long money's on the loonie, short money's on the Euro.

http://www.dailyfx.com/story/currency/eur_news/US_Dollar_Selling_Accelerates___1193417763987.html?engine=rss&keyword=article
Friday, 26 October 2007 16:55:09 GMT

US dollar selling accelerated through end-of-week currency trading, sending the Euro to record-heights and the Canadian dollar to fresh 31-year peaks. Overwhelming dollar bearishness was the hallmark of the earlier morning London forex session, and later rallies in the Dow Jones Industrial Average encouraged risk-sensitive speculators to continue selling the greenback. Disappointments in University of Michigan Consumer Confidence numbers only exacerbated such pressures and left the dollar at the bottom of its intraday range through time of writing.

The euro showed little hesitation in setting fresh record-highs of $1.4392 through the New York afternoon, and the British pound initially joined the euro in setting significant peaks in earlier trade. Yet continued speculation of Bank of England interest rate cuts sunk the high-flying currency to intraday lows of $2.0480. The downtrodden Japanese Yen was among the few currencies to remain relatively unchanged against the US dollar, as the greenback traded at 114.00 yen through time of writing.

Disappointments in University of Michigan Consumer Confidence figures further exacerbated fears of a consumer-led recession in the world’s largest economy. October surveys showed that consumer confidence hit its lowest since June, 2006, as US residents grew further pessimistic on economic growth prospects. Stock market tumbles undoubtedly played a hand in such deterioration, and further market routs could only accelerate the worsening in sentiment.

/...

http://news.yahoo.com/s/afp/20071026/bs_afp/germanyeconomyconsumerconfidencegfk

FRANKFURT (AFP) - Widespread German price increases, including those of butter and electricity, are starting to weigh heavily on consumer confidence, a monthly poll by the GfK institute showed Friday.

Its barometer fell to 4.9 points from 6.7 at the end of September, when it had already fallen for the second month in a row.

The findings "not only recorded a downturn in both economic and income expectations, but also in the propensity to buy," a statement said.

"Restraint is evident everywhere," it added.

The latest drop was much sharper than expected, with an analyst survey by Thomson Financial forecasting a decrease to 6.4 points.

Consumer morale has suffered in the past few months from fears of inflation, a reaction to sometimes drastic increases in food products on top of high energy prices, GfK noted.

...more...

Well, how about that! Those German consumers are real weenies! Over here across the pond, we don't worry about the cost of food and energy! We only worry when our computers cost more!

Rent is going up $36 to $438. Since I get so much free stuff-I am not complaining-it is still less than the cheapest apartment here and we have a good quality of life here. There goes a cost of living raise though. :eyes:

If you remove the price of energy and food! :crazy:

http://today.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2007-10-26T165641Z_01_L26251906_RTRIDST_0_MARKETS-EUROPE-STOCKS-CLOSE-UPDATE-3.XML

LONDON, Oct 26 (Reuters) - European stock markets closed stronger on Friday as oil shares tracked record crude prices and telecoms rose on robust sector results.

BP (BP.L: Quote, Profile , Research) was up 2.7 percent and Royal Dutch Shell (RDSa.L: Quote, Profile , Research) 2.9 percent as U.S. oil prices hit a new record above $92 a barrel, helping UK equities outperform other markets.

The pan-European FTSEurofirst 300 index <.FTEU3> rose 0.6 percent to close at 1,576.9, near the day's high of 1,580.3. It ended the week 0.8 percent higher in choppy trade and has gained more than 6 percent so far this year.

"We see markets up another 3 to 5 percent before year-end as they play catch up with consensus earnings per share growth of 8 to 9 percent for the year," European equity strategists at Merrill Lynch said in a note.

HSBC (HSBA.L: Quote, Profile , Research) and Santander (SAN.MC: Quote, Profile , Research) and miners Rio Tinto (RIO.L: Quote, Profile , Research) and Xstrata (XTA.L: Quote, Profile , Research) figured among the day's main European gainers. Telecoms also advanced, with TeliaSonera (TLSN.ST: Quote, Profile , Research) up 5.6 percent after forecast-beating results.

/...

Hope the politicians are around when this topic arises.

That's when those carry-seats first became popular. We were warned then never to set them on an elevated surface.
I don't see how this is a product flaw. :shrug:

:bounce:

05. December gold ends up $16.50 at $787.50 an ounce
1:46 PM ET, Oct 26, 2007 - 48 minutes ago

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20071026:MTFH65240_2007-10-26_18-36-53_N26516118&type=comktNews&rpc=44

NEW YORK, Oct 26 (Reuters) - Gold futures in New York finished sharply higher at just below $790 an ounce on Friday as commodity funds and investors aggressively added positions amid a falling dollar and crude oil rally.

Silver contracts also surged nearly 3 percent to a six-month high above $14 on pent-up demand and support from technical charts.

"There is good buying coming in here, all because of the currency situation. The dollar again being hit, and the energies are up huge. Also, the turmoil in Iraq and Turkey is setting up oil and we are following it," said Joseph Guzzardi, a floor trader at Sabin Commodities in New York.

Most-active December gold <GCZ7> on the COMEX division of the New York Mercantile Exchange settled up $16.50, or 2.1 percent, at $787.50 an ounce, trading between $771.80 and $789.50.

The dollar fell to lifetime lows versus the euro and a basket of currencies on Friday, while U.S. crude <CLZ7> hit a record $92.22 a barrel earlier on Friday as the dollar tumbled and Washington imposed new sanctions on Iran and gunmen shut more oil production in Nigeria.

Gold is used by investors as a hedge against inflation, while a lower dollar makes gold, which is denominated in the greenback, cheaper for holders of other currencies.

"If the dollar fall continues and oil remains strong, gold will likely trade towards $800 an ounce, irrespective of positioning," John Reade, head of precious metals strategy of UBS in London, told clients in a note. Reade had recently warned that a record high in speculative net long positions in the futures market could prompt a correction in bullion before prices could rise further.

/...

Absolutely fabulous news on gold and silver, especially gold IMO.

:toast:

Julie

Dow 13,746.46 74.54 (0.55%)
Nasdaq 2,790.10 39.24 (1.43%)
S&P 500 1,526.98 12.58 (0.83%)
10-Yr Bond 4.405% 0.053

NYSE Volume 415,364,843.75
Nasdaq Volume 382,449,781.25

09:40 am : The stock market got off to a strong start. Microsoft (MSFT), which has the third largest market cap in the S&P 500, reported blowout fiscal fourth quarter earnings and issued FY08 earnings guidance that was above current consensus estimates.

Countrywide (CFC) gave the futures market a big pop, despite reporting a larger than expected loss. Investors were encouraged by the company's raised profit guidance for the fourth quarter.

Crude oil prices rallied over $92 in Asian trading, but are not currently acting as a damper on the stock market. A barrel for December delivery is currently up 1.4% to $91.77. DJ30 +87.71 NASDAQ +51.64 SP500 +15.87

09:17 am : S&P futures vs fair value: +14.5. Nasdaq futures vs fair value: +33.5.

09:00 am : S&P futures vs fair value: +13.3. Nasdaq futures vs fair value: +31.8. Futures continue to point to a strong opening. Microsoft’s (MSFT) blowout earnings and Countrywide’s (CFC) upside fourth quarter earnings guidance are the main catalysts.

08:30 am : S&P futures vs fair value: +11.0. Nasdaq futures vs fair value: +28.0. Futures get a nice boost following Countrywide’s (CFC) third quarter earnings report. Countrywide posted a larger than expected third quarter loss, but has encouraged investors after it issued upside fourth quarter earnings guidance. Crude oil futures continue to rally and are currently up 1.3% to $91.61.

Can't lose two Fridays in a row. Would be bad for bidness... :eyes:

Okay, in the blather (If I'm translating it properly):

1. MSFT is still in operation, status quo.
2. A loser company run by a criminal is still miraculously somehow still in operation,
status quo.

3...

3...

3. Yikes! "Crude oil prices rallied over $92 in Asian trading, but are not currently acting as a damper on the stock market." Well, in an honest world it would. But, in our fake
world it's going to wait till around X-mas time... Looks like no goose for Tiny Tim this
year.

Dow 13,723.94 52.02 (0.38%)
Nasdaq 2,787.62 36.76 (1.34%)
S&P 500 1,524.08 9.68 (0.64%)
10-Yr Bond 4.385% 0.033

NYSE Volume 1,305,450,500
Nasdaq Volume 1,044,219,375

11:35 am : The stock market continues to trade in a choppy manner, but still holds healthy gains. The tech sector (+2.2%) is providing leadership.

Merrill Lynch's (MER 64.02, +3.14) much larger than expected third quarter loss shocked the market on Wednesday. Making headlines today, was a New York Times article that reported Merrill's CEO, without the board of directors' approval, contacted Wachovia (45.65, +0.56) about a possible merger. Subsequent press releases are indicating that Merrill's CEO will soon be out of a job.DJ30 +55.68 NASDAQ +38.43 SP500 +10.29 NASDAQ Dec/Adv/Vol 1029/1703/1.03 bln NYSE Dec/Adv/Vol 984/2032/438 mln

:think:, We could write a new TV nighttime drama...Knot-Heads Landing

Bush-the main character-for whom the show is named after...
Bush Sr-the impotent (but not impotent enough) head of the family....
Babs-wealthy socialite that married beneath her social standing.....
Laura-victim of an arranged marriage to the idiot son-married beneath her IQ, lover killed in 'accident'
Condi-the full time mistress, part time dominatrix er, handler of Knot-Head....
Cheney-right hand man of main character-secretly trying to take over family business from Knot Head. Know for his quick temper and even quicker trigger finger.
Rove-illegitimate son of Cheney-insider doing deals to secure Father's takeover.
Gonzales-the farm hand that has a special way with 'tools'.

The list of minor characters keeps growing. but I think this show can have a long run-maybe 8 years. It will cost trillions to make but think of the money we can make off the sponsors. And I haven't even started on the spin offs..."McCain's Air force", Preemptive Strike Force 911 staring Guillani, Family Feudal with host Mit Romney....I'm just speechless. It will be and exciting line up Fuch's Net Worth.

Although, as far back as I'm thinking, I doubt there were accurate nation wide
statistics.

04. U.S. 3Q homeownership rate falls to 68.1%, 4-year low
10:11 AM ET, Oct 26, 2007 - 1 hour ago

05. U.S. 3Q rental vacancy rate rises to 9.8%
10:11 AM ET, Oct 26, 2007 - 1 hour ago

06. U.S. 3Q homeowner vacancy rate rises to 2.7%
10:11 AM ET, Oct 26, 2007 - 1 hour ago

10/26/07 Number of vacant homes on the market nationwide equivalent to all homes in Detroit; another sign of weak housing market.


The number of vacant homes for sale rose in the third quarter, according to the latest government reading that casts new harsh light on the weakness of the housing market.

The Census Bureau report puts the number of vacant homes for sale at 2.07 million in the period, up about 2 percent from the second quarter, and 7 percent above year ago levels.

For purposes of comparison for the current situation, imagine the Detroit metropolitan area, which the Census Bureau estimated had 2.08 million households in its 2000 Census. Now picture virtually every house or condo empty, with a for sale sign in the front yard of every home, from inner-city Detroit to its suburbs, all the way to nearby cities such as Flint and Ann Arbor.

more...
http://money.cnn.com/2007/10/26/news/economy/vacant_homes/index.htm?postversion=2007102612

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.Y%24%24&v=s&w=5&t=l&a=1

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2007-09-25 Tuesday, September 25 0.9995 USD
2007-09-26 Wednesday, September 26 0.99552 USD
2007-09-27 Thursday, September 27 0.99691 USD
2007-09-28 Friday, September 28 1.00412 USD
2007-10-01 Monday, October 1 1.00715 USD
2007-10-02 Tuesday, October 2 0.9998 USD
2007-10-03 Wednesday, October 3 1.00392 USD
2007-10-04 Thursday, October 4 1.002 USD
2007-10-05 Friday, October 5 1.01885 USD
2007-10-08 Monday, October 8 1.01885 USD
2007-10-09 Tuesday, October 9 1.01564 USD
2007-10-10 Wednesday, October 10 1.01906 USD
2007-10-11 Thursday, October 11 1.02627 USD
2007-10-12 Friday, October 12 1.02701 USD
2007-10-15 Monday, October 15 1.02501 USD
2007-10-16 Tuesday, October 16 1.0227 USD
2007-10-17 Wednesday, October 17 1.02712 USD
2007-10-18 Thursday, October 18 1.02743 USD
2007-10-19 Friday, October 19 1.03767 USD
2007-10-22 Monday, October 22 1.01926 USD
2007-10-23 Tuesday, October 23 1.03381 USD
2007-10-24 Wednesday, October 24 1.02987 USD
2007-10-25 Thursday, October 25 1.03381 USD


Current values

http://quotes.ino.com/exchanges/?r=CME_CD)

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash        1.0380 1.0396 1.0380 1.0396 +0.0046 +0.44% 
CD.Z07 Dec 2007    1.0400 1.0406 1.0373 1.0400 +0.0049 +0.47% 
CD.H08 Mar 2008    1.0394 1.0394 1.0394 1.0394 +0.0045 +0.43% 
CD.M08 Jun 2008    1.0283 1.0283 1.0247 1.0346 +0.0043 +0.42% 
CD.U08 Sep 2008    1.0344 1.0344 1.0344 1.0342 +0.0043 +0.42% 
CD.Z08 Dec 2008    1.0300        1.0300 1.0333 +0.0043 +0.42% 
CD.H09 Mar 2009    1.0055 1.0060 1.0050 1.0324 +0.0043 +0.42% 
 

Other combinations:

AU.Z07 AUSTRALIAN $/US$ Dec (NYBOT)          0.90455 +0.00825 
HY.Z07 CANADIAN $/JAPANESE YEN Dec (NYBOT) 117.200   +0.485 
GB.Z07 EURO/BRITISH POUND Dec (NYBOT)        0.70320 +0.00315 
EP.Z07 EURO/CANADIAN $ Dec (NYBOT)           1.3849  -0.0004 
EJ.Z07 EURO/JAPANESE YEN Sep (NYBOT)       163.600   +1.275 

Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The December Canadian Dollar was higher overnight as it extends this week's rally above the 10-
day moving average crossing at 1.0283 and is again trading into uncharted territory. Stochastics
and the RSI are overbought, diverging but are neutral to bullish signaling that sideways to higher
prices are possible near-term. Upside targets are hard to project as December extends this fall's
rally into uncharted territory. Closes below the 20-day moving average crossing at 1.0218 would
confirm that a short-term top has been posted. First resistance is the overnight high crossing at
1.0430. First support is the 10-day moving average crossing at 1.0293. Second support is the 20-
day moving average at crossing at 1.0218.

Analysis

Alberta's abuzz with speculation about industry and voter reaction to Premier Stelmach's announcement of increased oil royalties. Other than that, nothing much going on.

Money market funds may have broken a law dictating a conservative investment profile by investing in SIVs, reports Fortune's Peter Eavis.

http://money.cnn.com/2007/10/25/magazines/fortune/funds_sivs.fortune/index.htm?postversion=2007102605

"Investment Company Act of 1940" looks like yet another part of the 'New Deal' is
being ignored.

No hope of justice currently, tho. Not under the current Administration or any other
Corpratist Administration.

many of the lessons and safeguard from the Great Depression have been unraveled. When we have a real 'Crash', I think more folks will be hurt than in the '80. Will it be as bad as '29-I don't know. Times will be interesting.

Hope everybody has got theirs.

Dow 13,701.26 29.34 (0.21%)
Nasdaq 2,777.60 26.74 (0.97%)
S&P 500 1,520.71 6.31 (0.42%)
10-Yr Bond 4.366% 0.014

NYSE Volume 1,512,175,500
Nasdaq Volume 1,198,941,000

12:00 pm : The stock market got off to a strong start, with Microsoft (MSFT 35.33, +3.34) and Countrywide (CFC 15.27, +2.20) being the main catalysts. The major indices are currently off their session highs, but continue to trade with healthy gains.

Microsoft's first quarter earnings came in at $0.45 per share, handily beating the $0.39 consensus estimate. Operating income rose 32% yearly with margin widening to 43% driven by revenue growth and impressive operating expense controls.

The good news didn't stop there. In a very atypical fashion, Microsoft provided a very optimistic guidance. For the second quarter, it forecast EPS in a range of $0.44-$0.46 on revenues of $15.6-$16.1 billion vs. consensus estimates of $0.44 and $15.59 billion, respectively.

Meanwhile, Countrywide reported a loss of $2.12 per share, significantly worse than the loss of $1.65 that analysts expected. The following sentence from its press release, though, is what investors focused on: " We view the third quarter of 2007 as an earnings trough, and anticipate that the Company will be profitable in the fourth quarter and in 2008." Futures rallied following earnings report.

Not everything was promising this morning, though. In overnight trading, crude rallied to an all time high of $92.22. Yesterday's sanctions on Iran, the conflict between Turkey and Kurds in northern Iraq, tight supply and a weakening dollar are playing a role in the rally. A barrel of crude is currently up 1.1% to $91.48.

In currency trading, the dollar hit a fresh all-time low against the euro. The Dollar Index is currently down 0.34%.

Nine of the ten economic sectors are in the green. The tech (+2.0%) and materials (+1.2%) sectors are providing leadership. The industrial (-0.1%) and consumer discretionary (flat) sectors are the main laggards. DJ30 +33.00 NASDAQ +28.25 SP500 +6.67 NASDAQ Dec/Adv/Vol 1208/1566/1.19 bln NYSE Dec/Adv/Vol 1135/1904/531 mln

beer can and spoon dangling story. :D

'In a conference call with analysts to discuss Brunswick's third-quarter loss, Chief Finance Officer Peter Leemputte said the results "reflected the deep decline in markets for outboard powered boats as well as some share loss."

He said unit retail demand in 2007 for aluminum boats over 16 feet long was down 20 percent compared with 2004. Leemputte said that demand in the Upper Midwest, where Brunswick has a greater presence and where a painful restructuring of the auto industry is cutting deeply into consumer confidence, demand for such boats was down 43 percent "meaning half this market has disappeared."'

(Reporting by James B. Kelleher, editing by Phil Berlowitz)

http://www.reuters.com/article/economicNews/idUSN2634274020071026

__________________________________

43%!

If the ice caps melt we may all be needing a boat for Water World.:smoke:

I doubt it though.

"Speaking to Bloomberg TV, Josef Ackermann said: "We're currently studying it and we're in constructive dialogue with the American banks as well as American authorities."

"Basically, if we can achieve an increase in demand, create transparency and contribute to returning calm to the markets, it should be supported."

He added that details about the proposed fund were not yet clear enough to make a final judgment."

http://www.reuters.com/article/fundsFundsNews/idUSL2681917520071026

________________________________________

Bold added by me.

Transparency! :rofl: That's just the opposite of what the plan is, dude. Whatever
you're smoking I want some! :lol:

Index Last Change % change
• DJIA 13741.99 +70.07 +0.51%
• NASDAQ 2787.95 +37.09 +1.35%
• S&P 500 1526.34 +11.94 +0.79%

http://blogs.telegraph.co.uk/business/ambrosevanspritchard/oct07/skyhasfallen.htm

...

Over the last three months we have seen a rolling collapse of speculative debt and real estate across half the global economy, yet friends still come over to my desk at the Telegraph, with that maddening look of commiseration on their faces, and jab: “so when is the sky going to fall then, eh”?

Well, excuse me. The sky has fallen. The median price of US houses has crashed from a peak of $262,600 in March to $211,700 in September. This is an 18pc drop nationwide.

Yes, the year-on-year slide is still just 4.2pc, but that will soon change as the base effect catches up.

Merrill Lynch has just confessed to a $7.9bn write down on CDO subprime debt and assorted follies, nearly double what it suggested three weeks ago.

This is what happens when a bank values its CDO debt at “mark-to-market” rather than “mark-to-myth”, as some of Merrill’s rivals are still trying to do.

Merrill’s Q3 loss of $3.5bn has cut the group’s equity capital by a fifth. This has consequences. The bank’s lending multiples will have to shrink.

In Britain, we have had the first bank run since the City of Glasgow Bank collapsed in 1878. The Fed has cut the interest rates a half point and vastly increased the pool of eligible collateral for Discount operations. The European Central Bank has injected over €400bn of liquidity in the biggest intervention since the euro was created.

Japan is in recession. Housing starts fell 23.4pc in July and 43.4pc in August.

The US dollar has fallen below parity with the Canadian Loonie for the first time since 1976, and to all-time lows on the global dollar index.

All it will take now for a full-fledged rout is a move by the Saudi and Gulf states to break their dollar pegs, which they may have to do to prevent imported US inflation causing havoc; or for the Asian banks stop buying US Treasuries – as Vietnam, Singapore, Korea, and Taiwan, have gingerly begun to do.

And for good measure, the Bank of England has just warned in its Financial Stability Report that lenders are still in serious trouble, that there is a risk of commercial property crash, and that equities are “particularly vulnerable” to a downturn. It is said there may well be a repeat of the summer crisis, “potentially on an even larger scale.”

What more do you want?

It is true that stock markets have once again decoupled from the realities of the debt markets. But they did this in the early summer, when the Bear Stearns debacle was already well under way. They caught up famously in August.

Nobody I talk to in the City credit trenches believes for one moment that the crunch is safely over. Indeed, they think that we are edging back to extreme stress levels, and the longer it goes on, the worse the damage.

/...

Which would prove that the message had gotten through, and that the sheep were mad as hell and not gonna take it any more...

:thumbsup: but the best quote was at the beginning......

"If you are a bear, you must accept that you will always be wrong in polite society, and you will continue to be wrong all the way down to the bottom of recession. That is the cross that bears must bear."

10/26/07 With oil prices setting records over $90 a barrel and $100 looking ever more likely, experts say there's a good chance drivers will see $3 gasoline before the end of the year.

"Three dollar gasoline in this market is unavoidable," said Stephen Schork, publisher of the industry newsletter the Schork Report. "At this rate, we're going to see $4 a gallon."

Crude oil prices have soared nearly 30 percent over the last month, mainly over fears that supply won't meet demand, a falling U.S. dollar, and what some say is a high degree of speculative investment money.

But so far drivers have been lucky. The national average price for gasoline has risen barely one cent, going from $2.81 last month to $2.82 this month, according to the motorist organization AAA.

Analysts have said the relatively stable gasoline price is due to slack demand following the high-demand summer driving season.

http://money.cnn.com/2007/10/26/news/economy/gas_oil/index.htm?postversion=2007102612

ho hum :eyes:

Dow 13,806.70 134.78 (0.99%)
Nasdaq 2,804.19 53.33 (1.94%)
S&P 500 1,535.28 20.88 (1.38%)
10-Yr Bond 4.389% 0.037

NYSE Volume 3,612,119,250
Nasdaq Volume 2,589,767,250

4:25 pm : If you are a market bull, you can't ask for anything more than to see the financial and technology sectors take leadership positions. When that is the case, the stock market has an excellent shot of trading higher considering the two sectors combined account for approximately 35% of the S&P's market capitalization.

On Friday those two sectors led a broad-based advance that punctuated what was already shaping up to be a positive week.

Credit for the market rally can be largely attributed to Microsoft (MSFT 35.03, +3.04) and Countrywide Financial (CFC 17.30, +4.23). The former company reported blowout earnings for its fiscal first quarter and provided full-year guidance that was ahead of the market's expectations. Countrywide, meanwhile, had a lousy third quarter report, but surprised the street with its pronouncement that it believes the third quarter marked an earnings trough and that it expects to be profitable in the fourth quarter.

In a way, Countrywide stole Microsoft's thunder, but at the end of the day, it turned out that there was plenty of buying interest to go around. All 10 economic sectors ended the session with a gain and seven - financial (+2.5%), technology (+2.4%), materials (+1.7%), utilities (+1.5%), energy (+1.1%), telecom (+1.1%) and consumer discretionary (+1.0%) - scored gains of 1.0% or more.

Microsoft led the way for the tech sector after posting a 27% jump in revenues, a 32% increase in operating income, and earnings of $0.45 per share that topped the consensus estimate by six cents. The software maker also raised its PC unit growth forecast to 10-12% from 9-11% and, in doing so, gave a wide swath of technology companies a boost.

Countrywide for its part reported a loss of $2.85 per share, or $2.12 per share excluding an item, but it sent the shorts running for cover when it forecast a fourth quarter profit between $0.25 and $0.75 per share. The relatively upbeat assessment was far better than many had feared. In similar fashion to Microsoft, Countrywide's good news gave a wide swath of financial companies a much-needed boost.

Separately, Merrill Lynch (MER 66.09, +5.19) was another standout in the financial sector as investors rallied around a New York Times article that said embattled CEO Stanley O'Neal allegedly approached Wachovia (WB 46.54, +1.45) to float the idea of a merger. The added kicker there is that the article alleged O'Neal did so without first getting approval from the firm's Board of Directors. That breach of protocol fostered speculation that O'Neal may soon lose his job.

Time will tell what happens to O'Neal, but on Friday, the tale of the tape for the broader market was unmistakably bullish. The gains that were recorded left the S&P 500 just 1.9% shy of its all-time closing high.

Friday's move was all the more remarkable considering it came with oil prices running to a record high of $92.22 per barrel. The price eventually settled at $91.86, but the weakening dollar and concerns about the growing tension between the U.S. and Iran kept most sellers sidelined.

Conversely, the Treasury market did some backpedaling Friday as the stock market rally curtailed some flight-to-quality interest. The 10-year note shed just five ticks, though, as bond investors didn't go too far, cognizant that the FOMC meets in the coming week. Briefing.com sides with the market's expectation that there will be a 25 basis point cut in the fed funds rate.DJ30 +134.78 NASDAQ +53.33 NQ100 +1.5% R2K +1.9% SP400 +1.2% SP500 +20.88 NASDAQ Dec/Adv/Vol 1004/1973/2.65 bln NYSE Dec/Adv/Vol 839/2394/1.40 bln

3:30 pm : The major indices have dipped off their session highs, but are still holding healthy gains. The stock market has spent the day solely in positive territory.

Next week, the main economic focus will be on the Oct. 31st FOMC policy statement. Briefing.com expects a 25 basis point cut in the fed funds rate. GDP and employment reports are also scheduled.

Another influx of earnings reports are scheduled, including Dow component Verizon (VZ 45.62, +0.72), which is set to report before the open on Monday. DJ30 +97.30 NASDAQ +42.78 SP500 +15.53 NASDAQ Dec/Adv/Vol 1108/1853/2.21 bln NYSE Dec/Adv/Vol 910/2287/1.05 bln

3:00 pm : The major indices are trading slightly below their best levels of the session with all ten economic sectors in positive territory. The Russell 2000 Index, which tracks small-cap stocks, is outperforming its large-cap counterparts.

The Amex Airline Index (-0.7%) is a notable pocket of weakness, despite Frontier Airlines (FRNT 6.96, +0.21) beating expectations. The high crude oil prices are the main drag on the index. DJ30 +119.33 NASDAQ +46.76 R2K +1.8% SP500 +18.50 NASDAQ Dec/Adv/Vol 1035/1873/2.02 bln NYSE Dec/Adv/Vol 929/2265/951 mln