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December 27, 2006

Cara's Daytrader Bull Board, Wed., Dec. 27, 2006, 6:10 AM

Spectacular moves in lightly traded international equity markets are pushing many to all-time record highs because of weakness in the global energy markets. U.S. equity futures are very strong this morning. Dollar is weak; Gold strong (+3 to 630 on the near futures and 628 on cash).

Natural gas continues weak and could even break below 6. U.S. Energy stocks (XLE) were only losing sector yesterday, while transports and airlines were strong on the energy market weakness. Strongest sector on the day however was Basic Materials.

U.S. economy continues down slope, i.e. slowing manufacturing with sustained inflation pressure, as regional Fed surveys from Richmond and Dallas now add force to the reports of the New York and Philadelphia Fed surveys. Retail spending is being affected. JC Penny was big loser (-2.3 pct) yesterday. Kohl's (KSS) (-1.3 pct) also dropped.

Electronic Arts (ERTS) seems in good shape with its Madden game.

The "Gold"man has lowered estimates for Chas. Schwab (SCHW) and E*Trade (ET). These are my two leading indicator stocks for the health of market trading. ET is a Cara 100.

Morgan Stanley reiterated an Underweight rating on FITB, and Argus moved NKE from Buy to Hold, while most analysts were enjoying holidays.

AMD says their 2007 chip business will grow by +20 pct in unit volume, which raises industry doubts. RIMM weakness (-1.8 pct) continues following some downgrades.

Crystallex (KRY) gained US$0.14 to $3.78. Cara is happy.

The management options back-dating probe continues, particularly at Apple (AAPL). I'll be surprised if the fall-out does not hit Steve Jobs.

Cramer has lots to say. He discussed UNTD as something special, which will shoot up that stock. I don't follow it. Maybe I should?

Asia-Pacific indices (Interactive link)


European indices (Interactive link)

Gold spot chart (Interactive link)

Silver spot chart (Interactive link)

Platinum spot chart (Interactive link)

Palladium spot chart (Interactive link)

$CRB Index (Interactive link)

$USD Index (Interactive link)

U.S. Treasury Bond Dec. contract (Interactive link)

Open Futures Contracts (Interactive link)

NYMEX Oil near futures contract (Interactive link)

Goldminer stock watch (Interactive link)

RSI Highs in Cara 100 (Interactive link)

RSI Lows in Cara 100 (Interactive link)

Economic calendar

Yesterday's portfolio movers from Cara Watch List:

Here are the Cara Watch List top 25 gainers on the day.

001j002.gif

Interactive chart of the top 12 Watch List gainers (Interactive link)

Interactive chart of the next 12 Watch List gainers (Interactive link)

Here are the top losers on the day.

001j003.gif

Interactive chart of the top 12 Watch List losers (Interactive link)

Interactive chart of the next 12 Watch List losers (Interactive link)

Here is the End of Day RSI-7 values prepared by "David" using a Welles Wilder smoothing that tends to eliminate or at least reduce the more erratic unsmoothed numbers calculated by Investertech.

001j001.gif


Posted by Posted by Bill Cara on December 27, 2006 06:10:43 AM | Category: Cara's Bull Board

Discourse


Something is rotten in this apple: Falsified Options Documents

Dec. 27 (Bloomberg) -- Apple Computer Inc. shares had the
biggest drop in six months after a report said federal
prosecutors are examining whether company officials falsified
documents to inflate the value of options grants.
Shares of the Cupertino, California-based maker of iPod
music players dropped $3.66, or 4.5 percent, to $77.85 at 9:48
a.m. New York time in Nasdaq Stock Market composite trading.
That's the largest decline since July.
The fake documents were uncovered during an internal probe
conducted by law firm Quinn Emanuel Urquhart Oliver & Hedges that
concluded in October, The Recorder said on its Web site today,
citing individuals familiar with the case. The information was
passed on to the U.S. Attorney's office, The Recorder said.
Chief Executive
Officer Steve Jobs was aware of the backdating in some instances,
though didn't benefit or realize the accounting implications,
Apple said at the time.
Jobs hired his own lawyer to represent him during the probe,
said The Recorder, a San Francisco-based legal newspaper.

Posted by: tinman [TypeKey Profile Page] at December 27, 2006 10:00 AM [link]

Bulls: 12500
Bears: 0

Posted by: Mousefinger [TypeKey Profile Page] at December 27, 2006 3:48 PM [link]

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