So many different kinds of readers.

It's difficult, you know, to write about financial markets for a general audience, some of whom are day traders and others very long-term oriented. Some are experts and some newbies. But I try to cover all bases.

When it comes to the business of forecasting markets, I am fortunate to have been more right than wrong. That means I am often wrong, as you know, and for that I feel bad even though I know I'll always make mistakes.

In the Week In Review #29 (July 22nd / 23rd), I stated, in no uncertain terms, that tech was over-sold and ready to rally. The rally started the next day, so I was right on that one.

The chip stocks (SMH ETF) were then #1 by a wide margin over four weeks, and number one this week as well. I hope you took advantage. Many of you wrote to say you did. Thank you.

In a blog article I published on Friday 28th, I pushed hard on the Intel button, and I'm happy to say that in the past 4 weeks, INTC is up +13.7 pct.

Intel management continues to make the tough decisions, which enables the company to stay on top of its market despite the hype and noise. I'll discuss Intel and the chips this week because I think it's a place traders now have to be watchful.

Back to the point that writing this blog is tough: two weeks ago I caused some consternation when I opined that, short-term, I could see strength in equity markets that I had not expected " even though I had called the rally in tech correctly.

Yes, many of you were disappointed when I recommended that traders hold their put writes and their longs longer, and avoid shorts and put buys, but now it turns out that I was accurate in that assessment too. But, today, everybody wants to know what I think will happen next, not last week or last month. That's why we're here for this report; it's more than just a week in review.

So at what point are we now in the market cycle?

All things considered, I think we are still early in the Bear, which started May 10, and which that week I called a Bear. If, in future weeks, I come to believe I am wrong, I'll certainly tell you. I have an open mind.

The U.S. equity market is, I believe, presently testing the May cycle high for many reasons:

(i) inflation, while persisting, is not perceived by the bond market as being problematic, and after Bernanke reported May 10 that the U.S. economy is transitioning to a slower pace, bond traders have been buying more bonds because they feel that slower growth will resolve some inflation pressures,

(ii) as bond (interest) yields declined, the competitive equity (dividend) yields became more attractive, and in fact equity PE multiples ratcheted higher,

(iii) cash-rich corporations have decided to appeal to the short-term interests of shareholders by buying back stock " even at high share prices " rather than investing in financially attractive long-term projects or acquisitions, and as the weak hands sell shares back to the corporate treasuries the strong hands stay aboard and the share prices rise,

(iv) the declining interest rate market is taking heat off the rapidly contracting real property market,

(v) a recent ten-pct drop in the price of crude oil is flowing through to dramatic cuts in the price of gasoline at the fuel pump, which is helping spur some growth in personal savings and spending, which is helping the U.S. economy to a softer landing than had been feared, and

(vi) the U.S. current account deficit and federal govt deficit have likely bottomed out, and will likely start improving in 2007.

Can the market rally to the point where the May cycle highs are surpassed, which would confirm the long-term primary Bull market in the U.S., or will the rally fail, leading some to say that I (and others) were prescient in calling May 10 as the start of the Bear?

Does it really matter? Truly, does it matter whether people say we are in a Bull or a Bear? Or is it more important that we allocate capital within our personal portfolios based on correct assessments of risk versus reward?

In other words do we have a plan? Is that plan flexible? Are we focussed on the big picture changes that allow us to see what's likely to happen within multiple smaller pictures?

One of the small pictures (for me at least) is Canada, which clearly is still in a long-term Bull market. It was just two weeks ago that the Toronto index set an all-time record high. I expect a repeat performance in a couple days.

But even in Canada, if traders were not positioned in the right sectors (energy, mines, banks), they probably are not too happy.

As for me, the American market is key, and I think that the Fall election campaigns in the U.S. are going to set a new low in terms of nastiness, and that will discourage traders.

I also think that bank foreclosures on real estate will soon embitter hundreds of thousands of Americans, and frighten others. It may not become widespread for many months, but the process has already begun.

In addition, I think that before the quarterly earnings season starts up in October, and again in January, there will be many disappointments in corporate boardrooms. That will lead to efforts to cut costs, including more rounds of employee lay-offs, which will embitter additional hundreds of thousands of Americans, particularly those who are watching their high-priced jobs going to foreign lands, forcing them to take lower-paying jobs at home.

All of this will add up to more discontent with politics and economics, and lower personal consumption.

Arguably there are regional and local pockets that seem to be immune to economic contraction, but when it comes to money, people are funny, as the expression goes. Change happens quickly.

So, until I see a new cycle high in the S&P 500 and Dow 30 that is higher than those of May, I've still got my sights on Dow cycle bottom numbers of 10170 (high), 9430 (medium), and 8680 (low), which are 1/3, ½ and 2/3 pull-backs of the distance travelled in the Dow 30 from the past long-term cycle low (Oct-2002).

Yes, I am impressed with the Summer rally, but the Summer is almost over now. Can this market rally through the Fall to new highs in Nasdaq and the Dow 30?

I don't think so.

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Global Market Summary

International Equities: Big money is still flowing into Canada. An all-time record high was set Aug-25, and will likely be set again this month. But this week, it was a different story for Templeton Russia, which dropped -3.2 pct W/W and -1.7 pct on Friday.

U.S. Equities : The major market indexes enjoyed a booming Friday and an all-round terrific week on the upside. The winners were the Nasdaq Composite at up +2.5 pct W/W, and the Russell 2000 small cap, which despite a relatively soft Thurs-Fri were up a very strong +3.2 pct W/W. So the short-term rally continues.

Dow 30 : There were 26 Dow stocks up and just 4 down, and of the losers only XOM (-3.3 pct W/W) was down more than -0.7 pct. It was a powerful performance as ten Dow components were up over +3.1 pct W/W. Can it continue? Well, September does have the worst track record.

U.S. Sector ETFs: There were 9 ETF's up and 1 (XLE) down. Apparently, traders must feel the U.S. economy is going to grow nicely (say 3.0 pct or better), or at worst have a soft landing.

First segment: most influenced by global commodities, forex and capex spending
10: Energy (XLE): #10 (-3.0 pct); From last to first to last again
15: Basic Materials (XLB): #4 (+2.0 pct); Broad improvement; DD up +3.1 pct
20: Industrials (XLI): #5 (+1.7 pct); UTX up +4.3 pct
Second segment: most influenced by U.S. consumer spending and economic growth
25: Cons. Discretionary (XLY): #2 (+3.0 pct); From #10 to #2; EBAY strong
30: Cons. Staples (XLP): #6 (+1.7 pct); Note the RSI divergence
35: Healthcare (IYH): #8 (+1.4 pct); Problem with generics
Third segment: most influenced by U.S. interest rates and general economic health
40: Financial (XLF): #9 (+0.9 pct); Flat over two weeks; LEH/GS got hit
45: Tech (SMH chips): #1 (+3.3 pct); Back & forth from #9 to #1 to #8 to #1
50: Telecom Services (IYZ): #3 (+2.5 pct); All week was strong
55: Utilities (XLU): #7 (+1.5 pct); Big days Mon. and Thurs.

Bonds: Bonds rallied yet again but are now over-bought as I see it. Don Coxe loves Zero Coupon Bonds now, but it's a bit too early. The U.S 10-year Treasury bond is now yielding 4.726, but is screaming to go back to 4.95 or so. Inflation has not disappeared.

Commodities: Two weeks ago I said $CRB was down but not out. It is close to being over and out. $CRB dropped -3.22 pct W/W and is now well below the 40-Week and 50-Day Moving Average lines. When above, these MA's represent support; when below, they represent resistance. What the commodity market is saying " and this goes for bonds too -- is that inflation is no longer a problem worth worrying about because a slower economy will take care of that. That's fine if the USD reverses its present course, which is south.

Oil & Gas: $WTIC futures were down -3.2 pct W/W as Ernesto flew by at something less than warp speed. In fact I'm looking at that rain, wind and low clouds out over Lake Ontario today. Not too many boats out there I can tell you.

Gold: $GOLD did what gold does when the USD goes south. $GOLD rallied +0.28 pct, which wasn't much, but the gold stocks did better.

Goldminers: The goldminers were up about +2 pct this week after going up +4 pct a week ago. Last week I wrote: "How about Kinross up +10.4 pct and Glamis up +8.1 pct". Well, how about those take-overs! This is Silly Season you know where corp executives start to mate. Glamis Gold for now; Kinross and Agnico-Eagle on the horizon, or so says the share prices. Suitors (Goldcorp) and potential suitors (Barrick, Newmont and Goldfields) didn't fare so well this week.

Forex: $USD had a weak week. The British Pound (is that a quid?) was the star this week, going up +1.0 pct. The Japanese Yen eked out a gain of +0.2 pct, while the Euro was very strong (+0.6 pct), with almost half of that on Friday. But the forex story today is the falling USD.

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Sector ETF:

Nine of ten sector ETF's were up. Once again, "the biggest winners become the biggest losers and back again. "And that's the way this market has been gyrating. It's enough to stymie anyone." This market is like a dartboard in a pub full of drunks. There is no sector rotation going on.

I put the latter point down to the inordinate amount of spin going on. Nobody knows what to believe. As long as SOMEBODY is buying the market higher, so too will they. This is like a game of musical chairs, though.

I sure don't hear too much discussion on Financial Entertainment TV about strengthening corporate fundamentals. But I do hear lots of enthusiasm for share buy-backs, for some unfathomable reason. If I'm a shareholder, I want the corporate directors to do this at the bottom of a long-term cycle, not at the top.

Speaking of TV, how about TV over IP, which is a concept being pushed by Scott Paterson's newly-listed company JumpTV (TSX: JTV). This is a concept with interesting ramifications.

While living in Bahamas, I'd like to be able to watch Canadian TV " say the Leaf hockey games. Now Bahamas Cable is owned by a Canadian company, and they do have a selection of CBC plus BBC and other international stations, but I'd like them all. JumpTV doesn't offer it yet, but maybe some day. In the 1990's I used an 8-foot satellite dish to pull in those hockey games, but isn't a notebook computer a lot more convenient?

Btw, Scott Paterson was interviewed on ROBTV on Friday, but I couldn't find the Replay.

For the U.S. equity market, as you know, I study it top down by sector. Here is the weekly performance of my favorite ten Sector Index Funds (ETF's). The following table is sorted by price performance Week over Week (W/W), i.e. 1W%N.

Table 1: Cara ETF List

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
SMH	33.84	-0.25	-0.73%	3.27%	2.08%	8.18%	-10.76%	-2.25%	-12.17%	-7.47%
XLY	33.19	0.27	0.82%	2.95%	0.30%	2.22%	0.58%	-2.50%	-1.57%	0.06%
IYZ	27.00	0.16	0.60%	2.54%	2.66%	2.82%	17.54%	6.30%	6.97%	13.07%
XLB	32.19	0.29	0.91%	1.96%	1.61%	3.27%	4.11%	-0.95%	2.06%	16.97%
XLI	32.48	0.23	0.71%	1.69%	-0.15%	1.31%	2.69%	-5.28%	-0.76%	9.51%
XLP	25.66	0.14	0.55%	1.66%	1.87%	3.72%	9.47%	6.87%	8.64%	11.37%
XLU	34.83	0.06	0.17%	1.52%	1.43%	2.23%	8.84%	8.34%	7.24%	5.58%
IYH	65.18	0.28	0.43%	1.37%	2.08%	3.59%	2.44%	6.26%	0.74%	3.77%
XLF	33.52	0.05	0.15%	0.87%	-0.06%	0.81%	4.10%	1.39%	2.20%	13.59%
XLE	56.50	0.83	1.49%	-2.95%	-1.70%	-2.32%	7.21%	1.44%	6.14%	8.74%

You can do this table yourself by entering the following string into the Summary window at Investertech.com and then clicking on the link for Performance. XLE XLB XLI XLY XLP IYH XLF SMH IYZ XLU . You can also add more ETF's " up to 30 in total.

For a list of components to any ETF, simply go to the AMEX.com web site, and click on ETF's. I do that frequently.

10 (energy: XLE)

15 (basic materials: XLB)

20 (industrial: XLI)

25 (consumer discretionary: XLY)

30 (consumer staples: XLP)

35 (healthcare: IYH)

40 (financial: XLF)

45 (technology, semiconductor: SMH)

50 (telecom: IYZ)

55 (utilities: XLU)

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Sector 10 (energy: XLE, IYE, VDE, OIH, PBW and IXC)

This week, XLE was down -2.95 pct to close at 56.50. That was enough to take XLE from #1 spot performance wise to #10 this week, which is the opposite of a week earlier.

The thing to watch out for is the negative divergence of RSI to the rising price trend for the Monthly price series. At some point, the loss of momentum will catch up to the XLE, which has enjoyed a terrific run to the upside this past couple of years as the price of oil ran from $20/barrel to $77.

Here's the XLE Monthly, Weekly, Daily and Hourly data charts:

XLE Monthly data:

XLE Weekly data:

XLE Daily data:

XLE Hourly data:

Table 2: Senior oil & gas equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
CEO	87.62	0.45	0.52%	-0.06%	-0.54%	1.87%	26.64%	14.79%	3.88%	18.21%
PBR	90.68	1.02	1.14%	-0.07%	-2.04%	-3.18%	21.36%	2.74%	-1.65%	45.41%
IMO	38.14	0.37	0.98%	-0.50%	-0.94%	0.47%	-63.33%	2.50%	-60.45%	-63.31%
STO	27.51	0.48	1.78%	-0.86%	-0.54%	-6.17%	14.01%	-6.52%	5.60%	8.56%
TOT	67.85	0.42	0.62%	-1.47%	-0.72%	0.61%	-47.84%	3.62%	-46.55%	-50.20%
CVX	64.83	0.43	0.67%	-2.91%	-3.61%	-1.26%	9.73%	8.09%	13.26%	3.38%
ECA	53.33	0.59	1.12%	-2.98%	0.23%	-0.30%	14.20%	3.78%	27.58%	4.04%
SU	78.35	0.77	0.99%	-3.08%	-1.20%	-5.21%	19.56%	-4.18%	2.28%	27.83%
XOM	68.10	0.43	0.64%	-3.31%	-1.45%	-0.86%	16.47%	11.44%	12.86%	10.41%

Big Oil (Exxon Mobil and Chevron Texaco) were down -3.3 pct and -2.9 pct respectively as Big Money is getting concerned that the Crude Oil price might not hold up in the futures market.

All the stocks I follow in this sector were down this week despite having a rally on Friday.

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Integrated Oil & Gas - Canada

Oil & Gas Exploration & Production -Canada

This week, Canadian oil and gas stocks fared poorly " Suncor and EnCana included. With the relatively high cost to produce in the oil sands, these stocks are particularly volatile. As the price of crude falls into the mid-60's or lower, these stocks will have major losses. And, should the price rally again into the mid-70's, these are the stocks in the sector that will likely out-perform on the upside.

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Sector 15 (basic materials: IYM, XLB, IGE and VAW)

The Basic Materials ETF (XLB) gained +1.96 pct W/W to close at 32.19. That meant the chemicals, and other natural resource producers fared rather well. DuPont (DD) was up +3.1 pct W/W, and Dow Chemical had an even bigger week, while Lyondell enjoyed its rally the prior Friday.

But these are economic cyclicals that may have downside ahead. If Industrial Production is going to flourish and crude prices decline, these are solid companies and good looking stocks. I'm just not sure I'd want to chase them here.

Here's the XLB Monthly, Weekly, Daily and Hourly data charts:

XLB Monthly data:

XLB Weekly data:

XLB Daily data:

XLB Hourly data:

Table 3: Senior metals and steel equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
RIO	22.26	0.82	3.82%	6.51%	-1.33%	-7.44%	3.53%	-5.32%	-7.25%	27.56%
GGB	15.11	0.59	4.06%	3.85%	-2.14%	-4.19%	-13.21%	3.49%	-36.80%	25.92%
RTP	205.03	3.58	1.78%	2.70%	-1.04%	-3.00%	8.59%	-5.66%	7.85%	39.32%
PD	90.75	1.25	1.40%	2.52%	0.80%	5.07%	21.53%	6.78%	28.32%	64.61%
BHP	42.67	0.57	1.35%	2.45%	-0.33%	0.09%	21.91%	0.23%	17.55%	31.70%
ACH	69.91	-0.19	-0.27%	2.27%	5.14%	7.80%	-11.95%	-9.67%	-34.22%	24.40%
PKX	63.11	1.00	1.61%	0.98%	3.31%	3.77%	25.59%	-3.94%	5.85%	19.26%
AA	29.01	0.42	1.47%	0.28%	2.04%	-1.89%	-2.98%	-10.93%	-1.83%	6.73%
NUE	49.68	0.81	1.66%	0.26%	-3.68%	-3.01%	43.25%	-6.93%	13.53%	71.61%
N	77.70	-0.25	-0.32%	0.00%	0.52%	-2.12%	79.57%	17.41%	54.17%	83.00%

Some of the senior metals had a terrific run this week, especially the Brazilian metals and steels. Big Copper also rallied. And how about the turn this past month in China Aluminum? Finally.

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Sector 20 (industrial: IYJ, XLI, VIS, and IYT)

The Industrials and Transport sector ETF (XLI), aka capital goods producers, was up this week by +1.69 pct to 32.48, so the record has been spotty over the past several weeks.

As I wrote a week ago: "Traders are nervous. They should all be watching the Dow Transport constituent stocks, which I pointed out on Friday."

This week Fedex (FDX) was up +2.7 pct and UPS gained a bit. But after a disastrous July and part of August, maybe this is just some short-covering and bottom feeding.

Here's the XLI Monthly, Weekly, Daily and Hourly data charts:

XLI Monthly data:

XLI Weekly data:

XLI Daily data:

XLI Hourly data:

Table 4: Senior capital goods makers and transportation

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
ERJ	39.48	0.88	2.28%	12.77%	9.76%	16.02%	0.56%	13.91%	-3.42%	10.40%
UTX	63.26	0.55	0.88%	4.27%	2.30%	1.10%	11.91%	0.09%	7.77%	26.47%
MMM	71.72	0.02	0.03%	2.57%	0.72%	3.27%	-9.34%	-15.13%	-2.65%	1.21%
BA	75.43	0.53	0.71%	2.03%	-2.82%	-5.11%	7.24%	-9.82%	3.40%	14.31%
CAT	67.27	0.92	1.39%	1.94%	-1.52%	-7.95%	16.38%	-8.21%	-9.57%	18.14%
TYC	26.38	0.23	0.88%	1.11%	-0.15%	2.85%	-11.00%	-4.90%	2.13%	-4.80%
GE	34.14	0.08	0.23%	0.89%	0.41%	4.09%	-3.48%	-1.19%	4.21%	3.02%
HON	38.77	0.05	0.13%	0.31%	-1.72%	1.57%	3.50%	-6.60%	-6.06%	1.23%
CBE	83.69	1.81	2.21%	0.29%	-3.55%	-4.24%	13.28%	-5.97%	0.83%	24.89%

Boy, with Brazil's Embraer (ERJ) going up +12.8 pct W/W, and some of the metals and steels doing so well, it is not at all surprising that the Sao Paulo Bovespa was very strong this week. The U.S.-traded Brazil ETF (EWZ) gained +4.2 pct W/W. That makes it +15.1 pct YTD and 42.2 pct over 12-months, which has only been beaten by Templeton Russia.

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Sector 25 (consumer discretionary: XLY, IYC and VCR)

The Consumer Discretionary sector ETF (XLY) was up +2.95 pct W/W to 33.19. But a week earlier XLY was hammered -2.6 pct after rallying +3.3 pct the week before that.

Traders are really confused as to whether their brothers and sisters have any coin in their jeans. Heads or tails seems to have come up heads this week.

And the reason for that was Thursday's report on Personal Income and Outlays. The People seem to be earning it and spending it.

For now.

But the point is they are, and that's the reason XLY hit #2 and SMH hit #1 this week.

And when the People stop earning and spending at such a "hot" rate, then that's when markets will go soft. I still think that, six months from now, people are likelier to have credit problems than not, and that will impact spending, and the cyclical spending sector stocks.

Here's the XLY Monthly, Weekly, Daily and Hourly data charts:

XLY Monthly data:

XLY Weekly data:

XLY Daily data:

XLY Hourly data:

Table 5: Senior consumer discretionary equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
EBAY	28.15	0.29	1.04%	11.31%	3.30%	16.32%	-36.68%	-14.90%	-29.45%	-29.52%
CCL	42.03	0.13	0.31%	7.71%	5.39%	9.17%	-22.98%	4.79%	-19.36%	-13.38%
SBUX	31.76	0.75	2.42%	6.04%	2.06%	3.76%	2.88%	-12.29%	-12.46%	30.48%
NKE	81.14	0.38	0.47%	5.69%	5.77%	3.14%	-5.60%	-0.34%	-5.99%	3.69%
WHR	81.56	0.65	0.80%	3.90%	2.75%	2.95%	-1.34%	-9.63%	-9.28%	7.37%
BC	29.20	0.50	1.74%	3.44%	-2.60%	-3.15%	-28.47%	-19.25%	-26.34%	-32.09%
DIS	29.89	0.24	0.81%	3.25%	-0.07%	-0.03%	22.50%	-2.38%	6.41%	21.06%
TM	108.48	0.14	0.13%	2.22%	-2.93%	0.31%	1.53%	-0.15%	1.35%	33.28%
JCP	64.05	1.01	1.60%	-1.76%	-6.02%	-0.03%	13.46%	-1.14%	6.43%	36.19%

Where are the People spending? How's this list? Ebay (+11.3 pct), Carnival Cruise Lines (+7.7 pct), Starbucks (+6.0 pct), Nike (+5.7 pct), Whirlpool (+3.9 pct), Brunswick (+3.4 pct), Disney (+3.3 pct) and Toyota (+2.2 pct).

Not a bad week thanks to the Big Spenders.

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Sector 30 (consumer staples: XLP, VDC, RTH and IYK)

This week the Consumer Staples sector ETF (XLP) gained +1.66 pct to close at 25.66. Wal-Mart (+3.6 pct) and Walgreen (+4.3 pct) got their cash registers working again.

Here's the XLP Monthly, Weekly, Daily and Hourly data charts:

XLP Monthly data:

XLP Weekly data:

XLP Daily data:

XLP Hourly data:

Table 6: Senior consumer staples equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
ABV	45.90	1.04	2.32%	6.37%	4.84%	11.16%	19.10%	7.22%	7.02%	41.23%
WAG	49.85	0.39	0.79%	4.25%	2.47%	2.55%	9.83%	22.78%	11.65%	8.96%
WMT	45.45	0.73	1.63%	3.58%	2.07%	1.29%	-1.69%	-6.08%	0.66%	1.00%
PEP	65.41	0.13	0.20%	1.92%	3.81%	3.55%	9.45%	7.05%	10.40%	19.04%
PG	61.91	0.01	0.02%	1.71%	2.52%	4.14%	5.32%	13.64%	2.99%	11.03%
KO	45.07	0.26	0.58%	1.24%	1.72%	2.78%	10.20%	2.62%	6.52%	2.71%
DEO	72.20	0.70	0.98%	0.43%	0.84%	2.62%	21.22%	8.02%	15.24%	21.61%
BUD	49.45	0.07	0.14%	-0.02%	1.33%	3.63%	13.24%	7.52%	19.04%	11.37%
MO	83.81	0.28	0.34%	-0.34%	-0.19%	4.89%	11.78%	15.74%	16.32%	19.64%
WFMI	53.54	-0.08	-0.15%	-2.05%	-0.76%	4.51%	-30.56%	-18.88%	-15.91%	-17.41%

Although the stock didn't do great this week (+0.4 pct), Diageo (DEO) had a superb earnings report " all that Guinness beer we've been buying " as well as a superlative +21.2 pct gain on the stock YTD.

These Fitzpatrick's take their Guinness seriously you know. A week ago at Whelan's, to say hello to the relatives coming in from Ireland, the man had a word or two for the bartender: "You know what you're doing is illegal " you know!"

Seems the Guinness was being poured too quickly, with too big a head.

"Illegal" they call it. "A great beer", I say.

And also a terrific operating performance by this Cara 100 company.

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Sector 35 (healthcare: IYH, XLV, VHT, IXJ, and IBB)

The healthcare ETF (IYH) was up +1.37 pct W/W to close at 65.18.

Speaking of healthcare and drinks: The pre-surgery form asks how many drinks a day do I have. "Is that counting wine?"

Here's the IYH Monthly, Weekly, Daily and Hourly data charts:

IYH Monthly data:

IYH Weekly data:

IYH Daily data:

IYH Hourly data:

Table 7: Senior healthcare equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
BMY	22.95	1.20	5.52%	5.86%	6.05%	0.88%	-1.25%	-8.75%	0.79%	-5.98%
GSK	56.76	-0.02	-0.04%	4.05%	4.26%	3.86%	11.38%	1.39%	10.45%	14.78%
DNA	82.69	0.17	0.21%	3.36%	0.80%	2.38%	-12.03%	0.10%	-2.66%	-12.72%
PFE	27.96	0.40	1.45%	2.68%	3.36%	7.62%	17.58%	16.99%	6.47%	10.51%
BMET	33.16	0.45	1.38%	2.25%	0.33%	-1.25%	-10.09%	-7.35%	-9.57%	-11.43%
UNH	51.80	-0.15	-0.29%	1.81%	4.65%	6.67%	-16.09%	13.30%	-11.35%	-0.48%
AMGN	68.39	0.47	0.69%	1.29%	1.60%	-0.58%	-14.90%	-0.58%	-10.07%	-14.59%
NVS	57.34	0.22	0.39%	1.27%	0.21%	2.17%	7.24%	3.06%	6.98%	16.57%
JNJ	64.72	0.06	0.09%	0.08%	0.47%	1.87%	5.01%	6.71%	12.24%	2.52%
AET	36.79	-0.48	-1.29%	-1.66%	0.55%	10.91%	-21.77%	-8.28%	-28.27%	-7.68%

Bristol-Myers Squibb (BMY) had a terrific week on Friday (+5.52 pct on Friday and +5.86 pct for the week). Seems a solitary U.S. judge put the boots to a Canadian drug maker.

So, even a lousy CEO (according to popular TV guy Cramer) has friends in some places.

Bristol-Myers has stayed in the Cara 100, but that's just because I can't make up my mind. I must have a thick skin though. It seems that getting beaten up for three years with BMY is not quite sufficient punishment.

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Sector 40 (financial: IYG, IYF, XLF, VFH, IXG, VNQ, RWR, IYR, and ICF)

The Financials ETF (XLF), which were hammered a week ago, gained it all back (except for two cents) this week. XLF was up +0.87 pct to close at 33.52.

Still, XLF is slowing down, and Lehman Bros (LEH) (-0.90 pct) and Goldman Sachs (GS) (-0.62 pct) were a drag. Merrill Lynch (MER) also dropped -0.55 pct and Morgan Stanley also lost a bit.

I say this because bonds were up, equities were up a lot, but XLF has fallen to #9 performer this week, and was #7 a week earlier.

Yield curve and customer credit issues, maybe?

---

Here's the XLF Monthly, Weekly, Daily and Hourly data charts:

XLF Monthly data:

XLF Weekly data:

XLF Daily data:

XLF Hourly data:

Table 8: Senior financial company equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
UBS	57.30	0.53	0.93%	2.76%	0.23%	6.33%	16.11%	-0.33%	6.55%	37.64%
DB	114.97	0.66	0.58%	1.86%	1.83%	2.30%	15.59%	-1.42%	1.72%	30.29%
CSR	55.96	0.06	0.11%	1.69%	-0.39%	3.00%	4.89%	-4.24%	-0.60%	26.26%
HBC	91.10	0.16	0.18%	1.63%	0.79%	0.53%	11.53%	4.22%	6.10%	12.16%
C	49.37	0.02	0.04%	1.50%	1.58%	1.79%	0.16%	-0.92%	6.10%	12.95%
JPM	45.73	0.07	0.15%	0.46%	0.04%	1.35%	13.78%	4.93%	9.85%	34.26%
MS	66.83	1.04	1.58%	-0.22%	-0.46%	-1.27%	14.34%	10.32%	11.14%	0.00%
MER	73.79	0.26	0.35%	-0.55%	-3.25%	1.67%	7.79%	1.64%	-4.84%	26.66%
GS	149.14	0.49	0.33%	-0.62%	-3.58%	-2.52%	15.73%	-2.87%	4.18%	31.84%
LEH	63.55	-0.26	-0.41%	-0.90%	-5.08%	-5.92%	-2.14%	-5.88%	-13.21%	18.12%

Lehman Bros got clobbered -4.2 pct, and Goldman Sachs dropped -3.0 pct W/W.

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Sector 45 (technology: IGM, IGV, IGW, XLK, VGT, IYW, IGN, IXN, MTK and SMH)

SMH gained +3.27 pct W/W to close at 33.84. Two weeks ago, SMH rocketed +8.2 pct, so clearly the semi-conductors are part of the driving force for the market moving higher.

Is this mostly an Intel thing (INTC was up +5.2 pct this week alone), or is there a major booking of new chip orders around the world? Is it possible that chips have stopped dipping?

Well, I don't think it could be the latter if, as CNBC reported from Silicon Valley, Intel is likely to announce a new round of staff cuts " 10,000 to 20,000 " this week.

The recent rally could be traders closing shorts and/or bottom fishing, but we have to keep our eye focused on the ball here.

For a clue, I looked to my birth son Genesis Microchip (NDQ: GNSS), which gained +50 pct in a month from mid-July to mid-August before the wheels came off on Aug-18. This week, Thursday and Friday were dreadful days, dropping -10 pct.

GNSS is only one clue, but to me it says the industry is not yet healthy.

---

Here's the SMH Monthly, Weekly, Daily and Hourly data charts:

SMH Monthly data:

SMH Weekly data:

SMH Daily data:

SMH Hourly data:

Table 9: Senior technology equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
SNDK	58.79	-0.13	-0.22%	7.65%	14.89%	23.40%	-13.16%	6.45%	-4.82%	53.30%
CSCO	22.27	0.28	1.27%	5.80%	6.76%	29.18%	27.62%	8.63%	5.75%	26.18%
INTC	19.88	0.34	1.74%	5.19%	8.10%	13.66%	-22.25%	10.20%	-4.42%	-21.30%
INFY	44.90	0.05	0.11%	4.15%	2.49%	8.06%	-44.19%	-36.97%	-37.93%	-36.89%
QCOM	38.35	0.68	1.81%	2.59%	2.76%	8.61%	-12.84%	-18.49%	-20.15%	-4.13%
SAP	47.61	-0.13	-0.27%	2.43%	0.11%	4.78%	3.61%	-11.14%	-8.21%	10.41%
ADSK	33.99	-0.77	-2.22%	1.43%	-1.79%	2.04%	-20.49%	-9.50%	-18.45%	-20.23%
CTSH	69.74	-0.17	-0.24%	0.96%	-1.52%	2.00%	37.58%	12.39%	18.63%	50.11%
ORCL	15.50	-0.15	-0.96%	0.58%	-1.34%	6.02%	23.02%	9.00%	21.00%	16.45%
ADBE	32.33	-0.11	-0.34%	-0.61%	-5.11%	1.92%	-16.07%	12.57%	-17.19%	20.50%

Following my "Buy the over-sold high-quality tech stocks" article of July 24, no group of stocks on the board has come close to performing like the techs. In 4 weeks, SMH is up +8.2 pct.

After the Intel article on July 28, imploring readers not to throw the baby out with the bathwater, INTC has rallied +13.7 pct.

But, these were trades in a Bear market. I come back to the issue, which is simply: is the global economy (particularly the U.S. and Europe) strong enough to drive new demand for semi-conductors, PC's, etc, or not?

I think not; at least, not yet.

It's true that the stock market is a leading indicator of the economy, probably by six months before discernible improvements are seen in the broad numbers, but, in a practical case, despite a falling USD, which ought to greatly help the order book of the U.S. chip makers, I still see major lay-offs, and capital being used for share buy-backs rather than capex that will build shareholder wealth in the future.

Giving you a different view of a company's financial summary doesn't alter the picture -- just the view.

---

Sector 50 (telecom: IYZ, VOX and IXP)

The U.S. telco sector ETF (IYZ) was up +2.54 pct W/W to close at 27.00. A week ago I wrote: "I'm not going to talk about three cent gains here." Well, this was sixty-seven cents. AT&T (T) was up +3.20 pct W/W. Even Verizon (VZ) jumped +2.51 pct this week.

But T is the big story in this industry. Following it's cycle low of just under $22 last October, the stock closed Friday at $31.61, and the dividend yield has been superb.

Meanwhile I bad-mouthed the company most of the way up. :-(

I made a mistake in this sector.

Here's the IYZ Monthly, Weekly, Daily and Hourly data charts:

IYZ Monthly data:

IYZ Weekly data:

IYZ Daily data:

IYZ Hourly data:

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Sector 55 (utilities: IDU, XLU, and VPU)

The Utilities ETF (XLU) gained +1.52 pct W/W to close at 34.83.

Monday (morning) and Thursday were huge days for the sector, and for Cara 100 Exelon (EXC).

Here's the XLU Monthly, Weekly, Daily and Hourly data charts:

XLU Monthly data:

XLU Weekly data:

XLU Daily data:

XLU Hourly data:

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Bonds:

This was anther bullish week for bonds as yields dropped from -5 to -10 basis points across the time horizon from 3-month T-Bills to 30-year U.S. Treasury bonds. The big story here is that a slowing economy will likely take the steam out of the inflation problem, which puts a sparkle in the eyes of bond traders.

And if bonds are going to do well, so too will regulated utilities and telcos, insurance and consumer/mortgage lenders, generally. These are the early sector rotators, which enjoy gains during periods of falling interest rates and bond yields.

It's the opposite end of the business cycle to commodity producers, which gain most when prices are rising, including the price of money.

Interest rates and bond yields.

Weekly data charts:

Daily data charts:

Hourly data charts:

US Treasury Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
3 Month	4.86	4.89	4.96	4.95
6 Month	4.90	4.90	4.95	4.96
2 Year	4.75	4.77	4.85	4.94
3 Year	4.68	4.70	4.77	4.90
5 Year	4.67	4.68	4.74	4.88
10 Year	4.72	4.72	4.78	4.96
30 Year	4.87	4.87	4.92	5.05

Municipal Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
2yr AA	3.51	3.57	3.53	3.68
2yr AAA	3.51	3.56	3.52	3.67
2yr A	3.58	3.61	3.59	3.77
5yr AAA	3.59	3.68	3.61	3.73
5yr AA	3.60	3.68	3.63	3.75
5yr A	3.61	3.74	3.66	3.77
10yr AAA	3.73	3.84	3.79	3.95
10yr AA	3.71	3.93	3.77	3.94
10yr A	3.85	4.02	3.98	4.06
20yr AAA	4.12	4.34	4.16	4.33
20yr AA	4.11	4.27	4.15	4.32
20yr A	4.23	4.24	4.30	4.52

Corporate Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
2yr AA	5.19	5.21	5.28	5.36
2yr A	5.28	5.28	5.36	5.43
5yr AAA	5.30	5.22	5.24	5.41
5yr AA	5.27	5.29	5.33	5.50
5yr A	5.37	5.37	5.43	5.59
10yr AAA	5.76	5.57	5.61	5.73
10yr AA	5.50	5.50	5.54	5.73
10yr A	5.65	5.65	5.70	5.88
20yr AAA	5.91	5.81	5.84	6.02
20yr AA	5.99	5.99	6.02	6.25
20yr A	6.10	6.11	6.13	6.27

Interest rates and bond yields.

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T-Bill yields dropped this week by -10 basis points from 4.96 to 4.86 pct. The yield on the 2-year Treasury Notes also dropped -10 bp to 4.75 pct, while the 5-year Note yield went down -7 bp to 4.67 pct!!, the 10-year dropped 6 bp to 4.72 pct and the 30-year ended down -5 bp to 4.87 pct.

The yield curve is not in good shape in terms of indicating economic growth (which needs a strongly up-sloping curve), but the fact that the whole curve is dropping down is a picture of bond trader happiness over their usual inflation worries, and the latter, I think, comes from their belief that oil prices will finally break down from the 70's level.

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US Bond Funds -- Monthly Data Charts

SHY Monthly data series chart:

IEF Monthly data series chart:

TLT Monthly data series chart:

AGG Monthly data series chart:

LQD Monthly data series chart:

TIP Monthly data series chart:

US Bond Funds -- Weekly Data Charts

SHY Weekly data series chart:

IEF Weekly data series chart:

TLT Weekly data series chart:

AGG Weekly data series chart:

LQD Weekly data series chart:

TIP Weekly data series chart:

US Bond Funds -- Daily Data Charts

SHY Daily data series chart:

IEF Daily data series chart:

TLT Daily data series chart:

AGG Daily data series chart:

LQD Daily data series chart:

TIP Daily data series chart:

US Bond Funds -- Hourly Data Charts

SHY Hourly data series chart:

IEF Hourly data series chart:

TLT Hourly data series chart:

AGG Hourly data series chart:

LQD Hourly data series chart:

TIP Hourly data series chart:

From the charts above, particularly the longer-term Monthly moving average trend lines, and the high cyclical values of the Weekly RSI data, it seems to me that possibly the bond market will soon start to test the resolve of the bond traders who have swung their capital into the "inflation is dead" camp.

When I look at the 10-year T-Note yield index Weekly RSI-7 (25.7), and the Daily (12.6), I'm thinking that bonds are well into over-bought territory. This is just the first up-wave in the new Bull market for bonds. As I always say, let's look at the whole cycle " the up and the down " before drawing a conclusion that buying bonds is a safe and prudent investment.

But we shall see. For now, however, bonds and consumer lenders are in rally mode.

The consumer loan group (CFC, FNM and FRE) had another great week in the stock market. I still believe it's a good time to sell these into strength. The credit bubble has not gone away and the housing market shock has just begun, and it will unfold in a series of waves, perhaps for a year or more.

Table 11: Interest-sensitive securities

Sorted by 1-Week Price Performance.

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
CFC	33.83	0.03	0.09%	4.25%	-2.39%	-9.55%	-3.23%	-14.38%	-3.45%	-1.57%
FNM	52.17	-0.48	-0.91%	1.95%	5.76%	9.81%	7.04%	1.42%	-6.54%	5.22%
FRE	63.67	0.07	0.11%	0.41%	4.09%	10.54%	-2.50%	4.96%	-6.06%	9.83%
TLT	87.76	-0.32	-0.36%	0.37%	1.14%	1.67%	-4.38%	4.84%	-3.01%	-7.70%
IEF	82.27	-0.19	-0.23%	0.10%	0.39%	0.90%	-1.94%	2.49%	-0.33%	-4.37%
SHY	80.05	-0.20	-0.25%	-0.04%	0.08%	0.36%	-0.34%	0.57%	0.30%	-1.14%
AGG	99.17	-0.38	-0.38%	-0.16%	0.16%	0.58%	-1.46%	1.69%	-0.78%	-3.39%
TIP	101.00	-0.61	-0.60%	-0.57%	-0.27%	0.02%	-1.98%	1.79%	-1.60%	-4.46%

Consumer Finance -USA -- Weekly Data Charts

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Consumer Finance -USA -- Daily Data Charts

Consumer Finance -USA -- Hourly Data Charts

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Commodities:

The $CRB made a significant move down this week, losing -3.22 pct W/W to close at 325.42. As you see, this was caused by the oil market.

Weekly CRB Commodities Index:

Daily CRB Commodities Index:

This week $WTIC (near oil futures) traded down from 72.51 to 70.20, often trading in the 60's, which we haven't seen for a while. That is a loss of -3.19 pct W/W.

I wrote a week ago, "The surprises now will come from hurricanes because supply is tight, and refining and delivery infrastructure not too solid in the face of major storms in the Gulf." So, this week there were no hurricanes in the Gulf " at least not in the Gulf of Mexico, and inventories improved, and peace seems to have been brokered in Lebanon.

The clock ticks.

Weekly Crude Oil:

Daily Crude Oil:

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Gold:

$GOLD didn't do much of anything this week, trading moderately higher by +0.28 pct to 625.09.

There are three keys: one is the technical resistance of the 50-Day moving average, which is at 627.30, and another is the goldminers' story. The third is $SILVER.

This week, the goldminers (arguably) and silver (for sure) told a positive story for traders who are long precious metals.

Weekly Gold EOD Continuous Contract Index:

Daily Gold EOD Continuous Contract Index:

This interactive chart shows the recent trading for the Gold Bullion index.

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After $SILVER had another good week, going up +2.73 pct a week ago, this week was even better. $SILVER gained +4.45 pct to close Friday at 12.95.

Weekly Silver EOD Continuous Contract Index:

Daily Silver EOD Continuous Contract Index:

This interactive chart shows the recent trading for the Silver Bullion index.

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$PLAT also gained, closing up +1.58 pct W/W to 1255.10.

Weekly Platinum EOD Continuous Contract Index:

Daily Platinum EOD Continuous Contract Index:

This interactive chart shows the recent trading for the Platinum metal index.

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$PALL had gained +3.60 pct and +3.88 pct in the past two weeks, so this week it was not surprising to see a modest decline of -0.75 pct to 347.00.

Weekly Palladium EOD Continuous Contract Index:

Daily Palladium EOD Continuous Contract Index:

This interactive chart shows the recent trading for the Palladium metal index.

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$COPPER gained +1.09 pct W/W to 346.90. Once again, "This is amazing when the "global economy is going to hell in a hand basket" story is so widespread."

It is also impressive that the gains occurred knowing that the major strike at the Chile Escondida mine was resolved. That mine, which is owned 57.5 pct by BHP and 30 pct by Rio Tinto plc, accounts for about 8 pct of global production.

BHP stock was up +2.5 pct W/W, and Rio Tinto (RTP) was up +2.7 pct. Even Phelps Dodge " another copper major, was up 2.5 pct. All of these stocks had a huge day on Friday (as bonds settled back).

So my point is that inflation prospects may decline but the mines and metals seem to be cranking along nicely. For many of these mining operations, you know, fuel is major cost. So, don't just equate the share price prospects for miners to be only inflation based.

If the USD continues to fall, but economic growth stay relatively firm, then I believe that the metals prices can hang in at these levels. And at these prices, the miners are making great coin.

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Weekly Copper EOD Continuous Contract Index:

Daily Copper EOD Continuous Contract Index:

This interactive chart shows the recent trading for the Copper metal index.

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Table 12: Senior gold equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
GLG	45.34	-0.78	-1.69%	17.10%	26.58%	21.69%	52.40%	17.77%	64.04%	123.79%
LIHRY	47.61	1.20	2.59%	6.70%	9.40%	5.52%	37.28%	13.95%	48.18%	122.37%
MDG	29.73	-0.01	-0.03%	6.67%	8.54%	8.27%	24.08%	-5.29%	15.41%	52.31%
AEM	38.56	0.81	2.15%	5.50%	11.09%	5.38%	74.95%	14.80%	44.96%	182.28%
KGC	14.31	0.29	2.07%	5.14%	16.06%	19.05%	44.69%	30.09%	50.32%	109.82%
ABX	33.43	-0.05	-0.15%	0.97%	5.59%	4.99%	16.00%	9.14%	21.52%	22.41%
BVN	28.19	0.24	0.86%	0.82%	1.40%	-4.44%	-4.63%	6.18%	5.58%	8.59%
GFI	20.33	0.45	2.26%	-0.54%	5.17%	-3.83%	5.50%	-4.55%	-12.37%	75.41%
NEM	51.21	-0.04	-0.08%	-2.48%	0.99%	-2.03%	-10.38%	-0.89%	-3.32%	25.12%
GG	27.35	-0.31	-1.12%	-9.29%	-4.80%	-8.74%	13.02%	-9.17%	4.23%	44.40%

The U.S.-listed goldminers ETF (GDX), and the Toronto goldminer index ETF (XGD) were up +2.28 pct, and +1.94 pct respectively. A week ago the numbers were +4.17 pct, and +3.75 pct.

But as long as the USD is in a falling trend, I think traders need to stay long the metals and the metal miners.

Just make sure that if $CRB is going to stay in the falling trend of the past couple weeks that the reason is due to oil.

---

To watch the moves in precious metal miners, you will have to monitor the individual stock charts, preferably in real-time, as follows:

NEM ABX AU GFI GG HMY GLG KGC BVN
15-minute data
60-minute data
Daily data
Weekly data

MDG LIHRY AEM BGO IAG EGO PAAS GOLD CDE GRS
15-minute data
60-minute data
Daily data
Weekly data

CBJ SSRI RGLD SIL NG KRY HL TSE_HRG TSE_GUY TSE_AGI
15-minute data
60-minute data
Daily data
Weekly data

NXG GSS MNG DROOY MFN RNO RANGY MRB CLG GRZ
15-minute data
60-minute data
Daily data
Weekly data

Here are the key Silver miners and the SLV ETF:

SLV SIL CDE HL PAAS SSRI SLW WTZ MGN

15-minute data
60-minute data
Daily data
Weekly data

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The one thing to not miss this week and next when looking at the share prices of the gold miners, is that the major acquisitors (Barrick, Newmont, Goldfields and Goldcorp) have relatively flat share prices. These are the major producers.

The mid-sized companies being acquired or at least sought after are the ones whose share prices are driving the goldminer indexes higher. Those companies are Glamis Gold, which was taken out this week, plus Kinross Gold and Agnico-Eagle, and a couple others.

The problem for the majors is that most have not made major gold discoveries for many years, and they are mining the gold so their reserves will deplete unless refilled via acquisitions. But the same majors are chasing the same mid- and small-caps (the ones with the attractive properties), so the game is getting expensive for them.

But traders cannot keep buying up the small and mid-cap miners either because the price gets too high relative to market risk as well as on an economic basis.

So the miners here need higher gold prices than the current 625 level. The price needs to move into the 650-680 level.

Ultimately, I continue to see a gold price well above 800 (within two years), which will cause the share prices of producers and prospectors (even the well promoted penny stocks) to go much higher than at present. So I continue to believe that buying the pull-backs and selling when strength takes the RSI for the majors up to the 70's level on the Daily is the right tactic.

This is a trading mentality, but with the extreme nature of the precious metal markets at this point, that's the way it must be done.

Astute traders continue to write puts at the Daily data cycle bottoms, and then sell them and buy puts at the cycle tops. That way you can use the market action to protect your long positions. You don't want to get forced out of long positions as long as the U.S. twin deficits are problematic and the USD weak.

When the yield curve for the U.S. Treasury market starts to slope normally (upwards), that means that the economy is ast creating value, and that's when you want to sell those over-weighted precious metal positions, and go under-weighted there, while being over-weighted the economically-sensitive stocks like the consumer cyclicals, the techs, the financials, the basic materials (wood and forest products, construction, chemicals), and the big industrial conglomerates. That too is the best time to buy the small and micro-cap stocks that have the good management, good business models, growing operations, and financial strength.

Then, the best strategy is to stretch your average holding period, and let the profits run.

It's just not the right time to do that today. The current market environment simply contains excessive risk.

A good use of time presently is to track some of the small and very small cap prospectors that are followed closely by independent and trustworthy experts like Bob Bishop. And please don't get me into the unfair position of being asked about the quality of other newsletter writers and promoters. Everything is personal in this business. Friends like Bob Bishop I can support on the basis of his track record and my personal knowledge of over 20 years, but enemies I don't need.

You never know when the rounders actually hit it big time with a successful drill discovery, but I know they have long memories and longer knives.

Here are the Weekly and Daily Data charts of the indexes:

Weekly U.S. Goldminers Index:

Weekly U.S. Goldminers Index:

Daily U.S. Goldminers Index:

The U.S. goldminer share trust ETF trades under the ticker symbol GDX.

Here are the U.S. Goldminer ETF (GDX) index Weekly, Daily and Hourly data charts:

GDX Weekly data:

GDX Daily data:

GDX Hourly data:

The Toronto Exchange-listed goldminer iUnits S&P/TSX Capped Gold Index ETF trades under the ticker symbol TSE:XGD.

Here are the Weekly and Daily data charts for the TSX Goldshares (XGD) index:

XGD Weekly data:

XGD Daily data:

---

Forex:

The $USD lost some ground this week, going down -0.57 pct to close Friday at 84.94.

A week ago it had rallied to 85.43, and I wrote: "No big deal".

These prices never go straight up or straight down.

In the case of the $USD, I have many readers telling me they see it going up, but I see otherwise. After all the 12-month trading range is 83.60 to 92.63 and 85.43 is a lot closer to the bottom. Besides the trend lines (40-Week and 50-Day MA's) are in decline, and the current price is below each of those.

Weekly U.S. Dollar Index:

Daily U.S. U.S. Dollar Index:

The Euro (priced in USD) gained +0.60 pct W/W to close at 128.35.

The British Pound was the star this week, going up +1.00 pct W/W. The Japanese Yen and the Canadian Dollar were also up.

Weekly Euro Dollar Index, priced in USD:

Daily Euro Dollar Index, priced in USD:

---

Weekly British Pound Index:

Daily British Pound Index:

The British Pound gained +0.31 pct W/W to close 188.65.

---

Weekly Japanese Yen Index:

Daily Japanese Yen Index:

The Japanese Yen didn't do much at all this week. It managed to eke out a small gain of +0.20 pct against the USD though " but only because of Friday.

Did you note that also on Friday the metals were up and the bonds down?

---

Weekly Canadian Dollar Index:

This week the Cdn Dollar gained modestly +0.33 pct W/W.

This is a true story, which goes to show that everybody needs to check the work of their banker at all times. I was buying a large amount of USD for wire transfer, and the banker gave me the rate, while smiling, saying I was "lucky" to have chosen that particular day because the rate was quite favourable. I replied that it was unfortunate I had to buy USD that day for a business deal because the rate would get better in a couple days.

I watched her make the calculation, and I said quietly, "That's a mean calculator you run there" and the bank manager (a small branch) asked what I meant by that. I replied that she was charging me too high a rate, to which she replied that I was buying not selling yada yada. I said, "I understand how it works; you missed my point."

I said she over-charged me, and asked her to recalculate the rate. She did and said her figure was the right one. She then left her office to take a call or something, and I picked up her calculator and ran the number, leaving it for her to see when she returned. As she printed my contract, I pointed to her calculator and told her I had done the correct calculation. She looked, and looked, and said there must be some mistake. To which I replied, "Ma'am, you simply cannot round off a number like 1.1315 to 1.135. Elementary school kids don't make that mistake."

"Oh" she says, "that mistake could have me fired." To which I replied, "Or cost me over $1,000." She wasn't smiling even though I was trying to be polite.

We all make mistakes.

Daily Canadian Dollar Index:

---

International Equities:

International equity markets were mostly this week, but Templeton Russia Fund (TRF) was down -3.17 pct W/W after going up +2.02 pct the previous week.

Table 13: International equities perspective

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
EWZ	40.10	0.93	2.37%	4.16%	-0.99%	-0.62%	15.13%	4.16%	-6.53%	42.20%
IEV	96.44	0.49	0.51%	2.09%	1.09%	3.05%	15.54%	5.50%	11.65%	20.40%
FXI	80.01	0.78	0.98%	2.08%	-0.49%	2.97%	27.02%	8.14%	9.41%	27.71%
QQQQ	39.08	0.21	0.54%	1.98%	0.75%	5.76%	-5.40%	-1.66%	-6.19%	0.41%
EWU	22.21	0.14	0.63%	1.97%	1.65%	2.30%	15.92%	6.17%	12.46%	16.22%
SPY	131.42	0.78	0.60%	1.24%	0.56%	2.51%	3.73%	2.09%	1.58%	7.29%
EWJ	13.83	0.12	0.88%	1.17%	-1.43%	1.62%	-0.86%	-1.64%	-0.72%	23.15%
EWC	24.97	0.22	0.89%	0.60%	2.63%	3.70%	11.22%	2.76%	5.94%	20.40%
IFN	39.86	0.16	0.40%	0.33%	-1.97%	4.18%	-3.42%	-18.24%	-20.76%	10.72%
TRF	69.55	-1.19	-1.68%	-3.17%	-1.22%	0.58%	28.80%	-5.30%	-10.78%	47.26%

---

Japanese equity market ETF: EWJ

The Japanese equity market ETF (EWJ, priced in USD), closed at 13.83, up +1.17 pct. Toyota Motor (TM), which the previous week had taken a hit when the USD was up, was up this week while the USD was down.

Don't know why except that maybe the strong U.S. personal income and spending data indicates "more tickee, more auto".

Here is the Japanese (EWJ) equity market ETF Monthly, Weekly, Daily and Hourly data charts:

EWJ Monthly data:

EWJ Weekly data:

EWJ Daily data:

EWJ Hourly data:

---

U.K. equity market ETF: EWU

EWU (priced in USD) gained strongly +1.97 pct W/W to 22.21.

Here is the United Kingdom (EWU) equity market ETF Monthly, Weekly, Daily and Hourly data charts:

EWU Monthly data:

EWU Weekly data:

EWU Daily data:

EWU Daily data:

EWU Hourly data:

---

Canadian equity market ETF: EWC

The EWC (Canada's equity market ETF that trades in the U.S. in USD) was up +0.60 pct this week to close at 24.97. The al-time record high is just pennies away. Can the oil market hang in?

Here is the Canadian (EWC) equity market ETF Monthly, Weekly, Daily and Hourly data charts:

EWC Monthly data:

EWC Weekly data:

EWC Daily data:

EWC Hourly data:

(Japan, Taiwan, Hong Kong, Singapore)

(U.K., Germany, France, Italy)

(Canada, Mexico, Brazil, Australia).

---

U.S. Equities:

This week, the high-beta stock indexes Nasdaq (+2.47 pct W/W) and the Russell 2000 small caps (+3.19 pct W/W) were up the most, which is what happens in a rally.

The S&P 500 and Dow 30 gained +1.23 pct and +1.60 pct respectively to 1311.01 and 11464.

The Nasdaq Composite and Russell 2000 closed at 2193.16 and 721.56.

These numbers don't look bearish, but let's see what September brings.

Low volume persists, and the summer is almost over.

The Dow Transports ($DTX0X) were up +1.67 pct W/W, which is all part of the rally.

Traders have to keep focused on the U.S. Transports (delivery via air, rail, truck and ship) to see how the economy is going. Normally, when the housing industry goes soft, there is less wood, chemicals, construction materials etc transported.

---

Here is the Monthly data chart of the Nasdaq Composite, S&P 500, Dow30, and Russell 2000 (small cap) indexes.

Here is the Weekly data chart of the Nasdaq Composite, S&P 500, Dow30, and Russell 2000 (small cap) indexes.

Here is the Daily data chart of the Nasdaq Composite, S&P 500, Dow30, and Russell 2000 (small cap) indexes.

Here is the Hourly data chart of the Nasdaq Composite, S&P 500, Dow30, and Russell 2000 (small cap) indexes.

For the Dow 30 this week, there were 26 component stocks up and just 4 down. With a soft week in between, two weeks ago there had been 27 up. So this U.S. market environment continues very bullish for the short-term.

Ten of the Dow 30 were up by more than +3.1 pct this week, and only one (XOM) was down more than -0.70 pct. That's a solid rally across many sectors.

But the key to it was the strength in the Consumer stocks (MCD, WMT, HD, DIS, and GM) and Technology (INTC and HPQ). The question is: are the People really better off today, and will they spend more tomorrow. Time will tell.

Table 14: Dow 30 List

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
INTC	19.88	0.34	1.74%	5.19%	8.10%	13.66%	-22.25%	10.20%	-4.42%	-21.30%
MCD	36.76	0.86	2.40%	4.34%	1.60%	3.81%	9.67%	9.14%	5.24%	16.51%
UTX	63.26	0.55	0.88%	4.27%	2.30%	1.10%	11.91%	0.09%	7.77%	26.47%
HPQ	36.53	-0.03	-0.08%	3.69%	2.84%	12.61%	26.97%	12.64%	7.28%	30.93%
WMT	45.45	0.73	1.63%	3.58%	2.07%	1.29%	-1.69%	-6.08%	0.66%	1.00%
HD	34.64	0.35	1.02%	3.46%	-0.37%	-0.20%	-16.00%	-10.14%	-18.67%	-14.70%
DIS	29.89	0.24	0.81%	3.25%	-0.07%	-0.03%	22.50%	-2.38%	6.41%	21.06%
GM	30.27	1.09	3.74%	3.20%	-0.92%	-2.64%	60.16%	12.53%	52.11%	-8.19%
T	31.61	0.48	1.54%	3.20%	3.61%	2.07%	27.92%	17.47%	12.53%	31.60%
DD	40.48	0.51	1.28%	3.13%	0.37%	2.12%	-5.99%	-5.55%	-0.32%	2.72%
PFE	27.96	0.40	1.45%	2.68%	3.36%	7.62%	17.58%	16.99%	6.47%	10.51%
MMM	71.72	0.02	0.03%	2.57%	0.72%	3.27%	-9.34%	-15.13%	-2.65%	1.21%
VZ	35.57	0.39	1.11%	2.51%	3.34%	5.33%	17.08%	11.30%	4.01%	9.04%
BA	75.43	0.53	0.71%	2.03%	-2.82%	-5.11%	7.24%	-9.82%	3.40%	14.31%
CAT	67.27	0.92	1.39%	1.94%	-1.52%	-7.95%	16.38%	-8.21%	-9.57%	18.14%
IBM	81.41	0.44	0.54%	1.92%	1.89%	7.25%	-0.79%	0.89%	1.89%	2.35%
PG	61.91	0.01	0.02%	1.71%	2.52%	4.14%	5.32%	13.64%	2.99%	11.03%
AIG	64.13	0.31	0.49%	1.55%	0.36%	6.76%	-7.89%	4.84%	-3.16%	8.05%
C	49.37	0.02	0.04%	1.50%	1.58%	1.79%	0.16%	-0.92%	6.10%	12.95%
MRK	40.96	0.41	1.01%	1.29%	3.64%	-0.94%	25.07%	21.18%	17.16%	44.17%
KO	45.07	0.26	0.58%	1.24%	1.72%	2.78%	10.20%	2.62%	6.52%	2.71%
GE	34.14	0.08	0.23%	0.89%	0.41%	4.09%	-3.48%	-1.19%	4.21%	3.02%
JPM	45.73	0.07	0.15%	0.46%	0.04%	1.35%	13.78%	4.93%	9.85%	34.26%
HON	38.77	0.05	0.13%	0.31%	-1.72%	1.57%	3.50%	-6.60%	-6.06%	1.23%
AA	29.01	0.42	1.47%	0.28%	2.04%	-1.89%	-2.98%	-10.93%	-1.83%	6.73%
JNJ	64.72	0.06	0.09%	0.08%	0.47%	1.87%	5.01%	6.71%	12.24%	2.52%
MSFT	25.83	0.14	0.54%	-0.08%	0.16%	6.34%	-3.76%	13.19%	-4.83%	-5.04%
MO	83.81	0.28	0.34%	-0.34%	-0.19%	4.89%	11.78%	15.74%	16.32%	19.64%
AXP	52.55	0.01	0.02%	-0.70%	-1.33%	0.65%	-0.06%	-4.07%	-2.90%	-4.97%
XOM	68.10	0.43	0.64%	-3.31%	-1.45%	-0.86%	16.47%	11.44%	12.86%	10.41%

You can do this table yourself by entering the following string into the Summaries window at www.investertech.com and then clicking on the link for Performance.

AA AIG AXP BA C CAT DD DIS GE GM HD HON HPQ IBM INTC JNJ JPM KO MCD MMM MO MRK MSFT PFE PG T UTX VZ WMT XOM

Here are the links to interactive Dow charts from Investertech.com that I broke into groups of ten, which you can add technical indicators for as well. (list one) (list two) (list three)

---

The current week's Value Line reports are for General Motors and Johnson & Johnson.

---

Interestingly, a reader yesterday took the news of a +4 pct sales surge in August by GM as representing a validation of American worker. The comment was: "Contrary to recent opinion, the American worker IS STILL a force to be reckoned with worldwide. And GM is on the move."

I would not question the "force" or resolve of the American worker, particularly on Labor Day. However, by industry standards, the number one and number two plants for GM happen to be in Canada at Oshawa, which is where the new Camaro will be built.

And while Ford sales took a beating in August, and GM sales were up, the important metric is margin. Just maybe GM gave away many of those vehicles at significant losses in order to clear inventory so that production levels could be optimized?

Besides, that is a discussion about management of these auto manufacturers, which I find lacking in North America. Why is it that the Japanese company manager can take the same American and Canadian auto worker and build higher quality, faster selling cars here?

That's a question that should be on the minds of traders. Nobody should be questioning the workforce.

GM is a company in restructuring. That means the financial stability of the company is in question, and during the restructuring process you can be assured that a lot of shareholder capital is going into fees for bankers, lawyers and accountants.

Meanwhile, operations are not being run smoothly as everybody and his brother/sister has an opinion, which includes people in the boardroom, workers, vendors, customers, and so on.

Finally, as to the shares, all traders should be aware that in a major company restructuring there are thousands of professional arbitrageurs, bankers, lawyers, and so forth who are much more knowledgeable as to the facts than any other person.

So if you happen to be a person who plays cards for money and let's the other players see your hand while you are blind to theirs, then trading the shares of companies while in restructuring mode is just the game for you.

To me, trading stocks of companies in re-organization is a loser's game to be avoided at all costs. Half the information the public receives is incorrect or misrepresentative of fact and the other half is downright deceitful.

As to Johnson & Johnson, this is a company with a need to rebalance its business model. The failed attempt to acquire Guidant took a lot of zip out of this company, but as Value Line surmises another target may be in the company sights.

I like J&J's management, and still consider the company to be worthy of Cara 100 status. Hopefully, the JNJ shareholders will have better years ahead.

---

Dow 30 list:
Alcoa [GICS 15, Dow 30]
(AA: Yahoo Finance file)
(AA: StockChart chart)
(AA: Investertech chart)
(AA: ADVFN Financial Data)
(AA: ADVFN Financial Data)
(AA: Value Line Report Jul. 21: next one is due Oct. 20)

---

Altria Group Inc [GICS 30, Dow 30]
(MO: Yahoo Finance file)
(MO: StockChart chart)
(MO: Investertech chart)
(MO: ADVFN Financial Data)
(MO: ADVFN Financial Data)
(MO: Value Line Report Aug. 4: next one is due Nov. 3)

---

American International Group [GICS 40, Dow 30]
(AIG: Yahoo Finance file)
(AIG: StockChart chart)
(AIG: Investertech chart)
(AIG: ADVFN Financial Data)
(AIG: ADVFN Financial Data)
(AIG: Value Line Report Aug. 25: next one is due Nov. 24)

---

American Express [GICS 40, Dow 30]
(AXP: Yahoo Finance file)
(AXP: StockChart chart)
(AXP: Investertech chart)
(AXP: ADVFN Financial Data)(AXP: ADVFN Financial Data)
(AXP: Value Line Report Aug. 25: next one is due Nov. 24)

---

AT&T [GICS 50, Dow 30]
(T: Yahoo Finance file)
(T: StockChart chart)
(T: Investertech chart)
(T: ADVFN Financial Data)
(T: ADVFN Financial Data)
(T: Value Line Report Jun. 30: next one is due Sep. 29)

---

Boeing Co [GICS 20, Dow 30]
(BA: Yahoo Finance file)
(BA: StockChart chart)
(BA: Investertech chart)
(BA: ADVFN Financial Data)(BA: ADVFN Financial Data)
(BA: Value Line Report Jun. 23: next one is due Sep. 22)

---

Caterpillar [GICS 20, Dow 30]
(CAT: Yahoo Finance file)
(CAT: StockChart chart)
(CAT: Investertech chart)
(CAT: ADVFN Financial Data)(CAT: ADVFN Financial Data)
(CAT: Value Line Report Jul. 28: next one is due Oct. 27)

---

Citigroup [GICS 40, Dow 30, Cara 100]
(C: Yahoo Finance file)
(C: StockChart chart)
(C: Investertech chart)
(C: ADVFN Financial Data)(C: ADVFN Financial Data)
(C: Value Line Report Aug. 25: next one is due Nov. 24)

---

Coca Cola [GICS 30, Dow 30]
(KO: Yahoo Finance file)
(KO: StockChart chart)
(KO: Investertech chart)
(KO: ADVFN Financial Data)
(KO: ADVFN Financial Data)
(KO: Value Line Report Aug. 4: next one is due Nov. 3)

---

Disney [GICS 25, Dow 30, Cara 100]
(DIS: Yahoo Finance file)
(DIS: StockChart chart)
(DIS: Investertech chart)
(DIS: ADVFN Financial Data)(DIS: ADVFN Financial Data)
(DIS: Value Line Report May 19: next one is due Aug. 18)

---

Dupont [GICS 15, Dow 30]
(DD: Yahoo Finance file)
(DD: StockChart chart)
(DD: Investertech chart)
(DD: ADVFN Financial Data)(DD: ADVFN Financial Data)
(DD: Value Line Report Jul. 21: next one is due Oct. 20)

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ExxonMobil [GICS 10, Dow 30, Cara 100]
(XOM: Yahoo Finance file)
(XOM: StockChart chart)
(XOM: Investertech chart)
(XOM: ADVFN Financial Data)
(XOM: ADVFN Financial Data)
(XOM: Value Line Report Jun. 16: next one is due Sep. 15)

---

General Electric [GICS 20, Dow 30, Cara 100]
(GE: Yahoo Finance file)
(GE: StockChart chart)
(GE: Investertech chart)
(GE: ADVFN Financial Data)(GE: ADVFN Financial Data)
(GE: Value Line Report Jul. 14: next one is due Oct. 13)

---

General Motors [GICS 25, Dow 30]
(GM: Yahoo Finance file)
(GM: StockChart chart)
(GM: Investertech chart)
(GM: ADVFN Financial Data)(GM: ADVFN Financial Data)
(GM: Value Line Report Sep. 1: next one is due Dec. 1)

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Hewlett-Packard [GICS 45, Dow 30]
(HPQ: Yahoo Finance file)
(HPQ: StockChart chart)
(HPQ: Investertech chart)
(HPQ: ADVFN Financial Data)(HPQ: ADVFN Financial Data)
(HPQ: Value Line Report Jul. 14: next one is due Oct. 13)

---

Home Depot [GICS 25, Dow 30]
(HD: Yahoo Finance file)
(HD: StockChart chart)
(HD: Investertech chart)
(HD: ADVFN Financial Data) (HD: ADVFN Financial Data)
(HD: Value Line Report Jul. 7: next one is due Oct. 6)

---

Honeywell [GICS 20, Dow 30]
(HON: Yahoo Finance file)
(HON: StockChart chart)
(HON: Investertech chart)
(HON: ADVFN Financial Data)(HON: ADVFN Financial Data)
(HON: Value Line Report Jul. 28: next one is due Oct. 27)

---

IBM [GICS 45, Dow 30]
(IBM: Yahoo Finance file)
(IBM: StockChart chart)
(IBM: Investertech chart)
(IBM: ADVFN Financial Data)(IBM: ADVFN Financial Data)
(IBM: Value Line Report Jul. 14: next one is due Oct. 13)

---

Intel [GICS 45, Dow 30, Cara 100]
(INTC: Yahoo Finance file)
(INTC: StockChart chart)
(INTC: Investertech chart)
(INTC: ADVFN Financial Data)
(INTC: ADVFN Financial Data)
(INTC: Value Line Report Jul. 14: next one is due Oct. 13)

---

Johnson & Johnson [GICS 35, Dow 30, Cara 100]
(JNJ: Yahoo Finance file)
(JNJ: StockChart chart)
(JNJ: Investertech chart)
(JNJ: ADVFN Financial Data)
(JNJ: ADVFN Financial Data)
(JNJ: Value Line Report Sep. 1: next one is due Dec. 1)

---

JP Morgan [GICS 40, Dow 30]
(JPM: Yahoo Finance file)
(JPM: StockChart chart)
(JPM: Investertech chart)
(JPM: ADVFN Financial Data)
(JPM: ADVFN Financial Data)
(JPM: Value Line Report Aug. 25: next one is due Nov. 24)

---

McDonalds [GICS 30, Dow 30]
(MCD: Yahoo Finance file)
(MCD: StockChart chart)
(MCD: Investertech chart)
(MCD: ADVFN Financial Data)
(MCD: ADVFN Financial Data)
(MCD: Value Line Report Jun. 9: next one is due Sep. 8)

---

3M Company [GICS 20, Dow 30, Cara 250 June 25-06]
(MMM: Yahoo Finance file)
(MMM: StockChart chart)
(MMM: Investertech chart)
(MMM: ADVFN Financial Data)
(MMM: ADVFN Financial Data)
(MMM: Value Line Report May 19: next one is due Aug. 18)

---

Merck [GICS 35, Dow 30]
(MRK: Yahoo Finance file)
(MRK: StockChart chart)
(MRK: Investertech chart)
(MRK: ADVFN Financial Data)
(MRK: ADVFN Financial Data)
(MRK: Value Line Report Jul. 21: next one is due Oct. 20)

---

Microsoft [GICS 45, Dow 30]
(MSFT: Yahoo Finance file)
(MSFT: StockChart chart)
(MSFT: Investertech chart)
(MSFT: ADVFN Financial Data)
(MSFT: ADVFN Financial Data)
(MSFT: Value Line Report Aug. 25: next one is due Nov. 24) >

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Pfizer [GICS 35, Dow 30]
(PFE: Yahoo Finance file)
(PFE: StockChart chart)
(PFE: Investertech chart)
(PFE: ADVFN Financial Data)
(PFE: ADVFN Financial Data)
(PFE: Value Line Report Jul. 21: next one is due Oct. 20)

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Procter & Gamble Co. [GICS 30, Dow 30, Cara 100]
(PG: Yahoo Finance file)
(PG: StockChart chart)
(PG: Investertech chart)
(PG: ADVFN Financial Data)
(PG: ADVFN Financial Data)
(PG: Value Line Report)

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United Technologies [GICS 20, Dow 30, Cara 100]
(UTX: Yahoo Finance file)
(UTX: StockChart chart)
(UTX: Investertech chart)
(UTX: ADVFN Financial Data)
(UTX: ADVFN Financial Data)
(UTX: Value Line Report Jul. 28: next one is due Oct. 27)

---

Verizon [GICS 50, Dow 30]
(VZ: Yahoo Finance file)
(VZ: StockChart chart)
(VZ: Investertech chart)
(VZ: ADVFN Financial Data)
(VZ: ADVFN Financial Data)
(VZ: Value Line Report Jun. 30: next one is due Sep. 29)

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Wal-Mart [GICS 30, Dow 30, Cara 100]
(WMT: Yahoo Finance file)
(WMT: StockChart chart)
(WMT: Investertech chart)
(WMT: ADVFN Financial Data)
(WMT: ADVFN Financial Data)
(WMT: Value Line Report Aug. 11: next one is due Nov. 10)

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Wrap up:

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All I try to do in this and every Week In Review is have a look at the big picture and interrelate the pieces. Sometimes I'm right and sometimes not. But I do it every week, with a record for all to see, which forces me to be honest because you the reader are the referees.

Yes, I'm doing this for myself as much as I do it for you. I appreciate those readers who write to say, hey knock off the self-adulation crapola, because that grounds me and forces me to be more honest with myself.

And I appreciate it when I get letters saying, you know, you were the first one who warned readers several months ago that the U.S. bond market was finally transitioning out of an extended Bear phase, and I stopped being so worried about my bonds.

At the end of the day, all we can do for ourselves is to be honest and serious in our thinking.

Money isn't a game, but it's certainly a subject we have (or should have) a personal interest in. Whether we have the time and ability to manage our own or whether we spend whatever time we can to learn, we need to be able to filter out the nonsense in the sell-side oriented financial media, and to communicate effectively with professional advisors.

Sometimes I use this blog to joke around and sometimes I delve into emotionally-charged territory, but all the time I know that readers are thinking, thinking, thinking! " a lot more after first meeting me.

And that is sufficient payback for me.

Next Saturday's Week In Review is going to follow Friday's removal of a couple melanoma's. I have a lot of support, with letters coming to me from all over the world, through the blog and directly, for which I thank each and every one of you.

I think that the blogosphere is a wonderful place to meet people. It's obviously not a natural trait to expose oneself openly " emotionally, knowledge-wise, biases, and all " but I figure it's all worth it. I truly believe that the more we openly communicate, the better off we'll be.

We live in a world full of bacteria, which we build on daily, but sunlight is a wonderful disinfectant, and the blogosphere is a terrific tool to help us spread that sunlight.

Btw,

I took these photos on Saturday. First is an F-something directly overhead, and the other is of the waves crashing ashore. Both were noisy.

I figure the aircraft at about 2000 feet and the waves at about 6 to 8. It was actually much worse at different times. More planes and bigger waves.

As my wife said, "Don't you wish those were sailboats and palm trees." I replied, "Soon. Soon enough."

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It's Sunday morning and we're headed to the Canadian National Exhibition to celebrate Labour Day, the end of Summer, the pilots and aircraft on display, and whatever else we can manage in one afternoon.

Have a good one.

BCara@BillCara.com