I'm just waiting for some wag to say that it is an improvement over my regular report. (LOL)

Not really able to laugh, though.

This week, I'd like you to look at the $USD, which has had its run up to the down sloping Moving Average lines. I think the run is soon over, and that natural resources based currencies (Canada for example) will start to rally. So too will gold.

Actually the rally in the gold commodity and the stocks started this week, which last week I pointed out I could foresee happening this week, and this week had quite a run up in the gold bullion. Early Friday morning, I gave you a good list of 20 PM stocks to keep on your Watch List.

Higher U.S. Treasury yields will try to keep that gold move in check, but that too would worsen the situation in the housing industry. So, I suspect we'll be told the housing industry problems are over (not!) and that it is ok to have lower bond prices (not!).

As to the new highs in the equities, I haven't yet seen any analysis of apples to apples comparison. The index components and weightings have changed since the last long-term cycle peak. Also, the share buy-backs and increased dividend payout levels have simply restructured the corporate balance sheets and pumped up share prices and the equity market indexes. So, without seeing the incremental enterprise values to support these higher share price levels, in the majority of cases, I'm not impressed by today's chatter of records.

In any event, trading is about finding stocks of quality (peer out-performing) companies and buying the dips and selling the peaks each long-term, intermediate-term or short-term cycle, depending on your own approach to trading.

I believe the equity markets have lifted for two basic reasons: (i) falling oil prices, and (ii) hope of falling interest rates.

If you think that global economic recession or depression is close by, then I guess you have a reason to think that oil prices will fall into the 40's or 30's. But then you cannot also believe that corporate earnings will continue at a double-digit pace.

If you think that the war against terrorism will soon be over, facilitating smaller budget deficits in the U.S., then I guess you have a reason to think that interest rates will decline. But then you are not listening to the U.S. President saying he is putting more troops into the war, and warning the world about that other "axis of evil" Iran.

You know, being a fiscally conservative person, I was hopeful in the Bush Administration six years ago. But utterances such as "axis of evil" are, to me, a sad reflection of a pretender to high diplomatic position. The world needs diplomacy.

Bush's speech this week to try to explain the new policy of military build-up in Iran resulted in precisely no change in the lowly ratings the President has. Admittedly, he is facing the worst problems in maybe 50 years, but by the polls his own people fail to see the leadership.

I think the axis of Bush stringpullers has gotten the world into the crisis shape it's in today, and central banks have followed the only course available to them. Excess credit has been poured into housing at first, and then stocks and bonds. The final cyclic move will be into gold, silver, palladium and platinum. And when the precious metals cycle is over, all prices will be in a cycle of decline.

I'd like to think that politics and markets were like church and state, separate, but this President has them all mixed up. And, as and when the stock and bond markets decline from here, I believe there will be massive outpouring of emotion against this President, and a denouement that sets the stage for the next great bull market.

Now I can return to bed " thinking of good things ahead.

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Value Line Dow 30 Reports

(GE: Value Line Report Jan. 12)

(HPQ: Value Line Report Jan. 12)

(IBM: Value Line Report Jan. 12)

(INTC: Value Line Report Jan. 12)

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Sector ETF Review

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	35.09	0.11	0.31%	3.66%	3.94%	3.42%	4.53%	-0.48%	12.65%	-12.30%
XLB	35.23	0.39	1.12%	2.95%	0.28%	0.60%	1.79%	8.53%	11.42%	15.47%
XLY	39.26	0.11	0.28%	2.64%	1.71%	2.91%	1.92%	6.89%	21.21%	16.98%
IYH	68.04	0.29	0.43%	1.90%	2.05%	3.01%	2.38%	3.23%	12.15%	5.39%
XLI	35.58	0.10	0.28%	1.77%	0.62%	1.05%	0.99%	2.74%	7.46%	12.13%
XLP	26.48	-0.07	-0.26%	1.30%	0.84%	1.61%	0.76%	4.42%	8.35%	12.63%
XLF	37.00	0.04	0.11%	1.26%	-0.35%	1.54%	0.22%	4.64%	14.84%	13.81%
IYZ	29.53	0.10	0.34%	1.13%	0.00%	0.37%	-0.44%	4.46%	17.65%	25.61%
XLU	35.87	-0.30	-0.83%	-0.66%	-2.92%	-3.34%	-2.58%	3.94%	9.43%	12.27%
XLE	55.44	1.38	2.55%	-0.86%	-6.59%	-8.00%	-2.01%	4.11%	-3.92%	3.01%

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.

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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)

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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
ECA	46.15	1.41	3.15%	2.85%	-0.97%	-11.73%	1.79%	3.75%	-10.74%	1.18%
SU	73.12	3.41	4.89%	0.65%	-6.70%	-6.84%	-1.07%	4.73%	-7.78%	11.62%
CVX	70.35	1.66	2.42%	-0.28%	-4.98%	-4.74%	-0.87%	9.89%	8.45%	17.47%
STO	24.45	0.74	3.12%	-0.41%	-6.82%	-10.70%	-4.83%	5.07%	-17.76%	0.00%
XOM	72.66	1.68	2.37%	-0.79%	-5.59%	-4.71%	-1.96%	7.41%	13.58%	21.83%
PBR	94.40	1.09	1.17%	-1.06%	-7.15%	-2.46%	-5.28%	11.54%	6.27%	12.58%
CEO	87.24	2.58	3.05%	-1.31%	-4.17%	-1.65%	-7.46%	6.73%	6.59%	14.38%
TOT	67.90	1.25	1.88%	-1.57%	-6.03%	-4.63%	-4.33%	3.18%	2.69%	2.40%
IMO	32.88	0.92	2.88%	-2.08%	-9.42%	-14.46%	-7.80%	5.25%	-10.41%	-67.94%

Integrated Oil & Gas - Canada

Oil & Gas Exploration & Production -Canada

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

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	29.70	0.84	2.91%	7.96%	-2.11%	2.13%	3.05%	24.16%	28.68%	24.89%
AA	30.79	0.32	1.05%	7.06%	2.56%	0.59%	4.98%	15.75%	-3.93%	6.87%
RTP	206.43	0.49	0.24%	6.63%	-2.99%	-3.78%	1.14%	3.20%	-2.23%	6.53%
TS	50.35	2.71	5.69%	6.45%	0.96%	8.96%	3.77%	44.60%	27.82%	98.85%
BHP	39.52	0.56	1.44%	6.35%	-0.20%	-0.65%	1.67%	-0.68%	-10.49%	11.04%
TCK	70.54	1.56	2.26%	6.04%	-6.26%	-9.84%	1.86%	6.64%	14.66%	0.00%
NUE	56.30	0.33	0.59%	2.87%	1.10%	-5.54%	3.30%	4.24%	3.86%	60.90%
PKX	80.78	2.68	3.43%	2.87%	-3.83%	3.17%	1.70%	20.53%	29.56%	61.33%
MT	40.56	0.68	1.71%	1.37%	-3.17%	-1.07%	-0.59%	7.02%	31.90%	43.93%
GGB	15.67	0.15	0.97%	0.64%	-4.16%	-2.61%	-4.57%	6.82%	3.77%	-13.19%

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

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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
ABB	17.72	0.52	3.02%	4.67%	-1.01%	4.24%	-0.56%	25.67%	44.54%	60.94%
UTX	64.42	0.72	1.13%	2.78%	2.35%	-0.59%	2.56%	-2.95%	1.87%	16.16%
MMM	79.36	0.71	0.90%	2.51%	1.13%	0.44%	1.41%	5.21%	9.13%	2.14%
HON	45.56	-0.15	-0.33%	2.04%	0.40%	8.40%	1.02%	7.68%	17.12%	22.87%
FDX	108.86	1.19	1.11%	1.24%	0.85%	-5.09%	-0.83%	-2.97%	-3.32%	8.52%
GE	37.89	-0.03	-0.08%	0.88%	0.26%	6.31%	-0.21%	4.61%	14.61%	8.26%
CAT	59.74	-0.26	-0.43%	-0.80%	-2.81%	-4.08%	-2.32%	-13.73%	-16.22%	-3.97%
ERJ	39.43	-0.02	-0.05%	-0.90%	-4.34%	-6.94%	-3.31%	-8.52%	9.71%	-1.55%
BA	88.13	-0.71	-0.80%	-1.14%	-0.84%	-2.41%	-1.17%	5.37%	8.91%	26.46%

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

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
JCP	78.87	0.40	0.51%	2.99%	0.60%	2.16%	1.04%	8.00%	15.81%	38.73%
DIS	35.21	0.22	0.63%	2.98%	1.94%	1.94%	2.95%	12.49%	17.72%	37.32%
SBUX	35.90	0.09	0.25%	2.16%	0.31%	-1.07%	1.84%	-5.43%	4.27%	15.96%
CCL	50.91	0.11	0.22%	2.06%	1.98%	7.29%	-0.08%	7.31%	25.86%	-6.42%
WHR	85.80	-0.29	-0.34%	1.26%	2.85%	0.19%	1.35%	-3.47%	13.06%	4.79%
NKE	99.76	-0.22	-0.22%	0.94%	0.24%	3.30%	2.14%	11.08%	26.90%	15.58%
TM	130.89	2.11	1.64%	-2.12%	-2.51%	5.89%	-3.26%	11.94%	27.66%	24.13%
BC	30.52	0.03	0.10%	-2.52%	-5.33%	-5.31%	-4.39%	-6.64%	3.28%	-26.39%
EBAY	30.00	-0.23	-0.76%	-2.53%	-1.83%	-5.60%	-0.56%	1.08%	10.21%	-33.10%

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

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	50.41	1.41	2.88%	5.39%	3.00%	5.02%	2.67%	8.06%	25.34%	21.03%
BUD	50.34	0.66	1.33%	3.16%	2.30%	3.79%	2.28%	5.56%	9.22%	18.70%
PEP	64.70	-0.25	-0.38%	2.78%	2.88%	2.94%	3.16%	2.94%	5.89%	9.96%
DEO	79.30	1.60	2.06%	2.61%	-0.40%	1.50%	-0.29%	10.34%	16.89%	31.66%
PG	65.00	0.36	0.56%	2.36%	0.90%	2.04%	0.71%	4.15%	14.82%	11.28%
WAG	46.20	0.14	0.30%	1.54%	0.13%	4.88%	0.28%	3.68%	-1.09%	6.57%
MO	88.42	-0.98	-1.10%	1.46%	3.04%	4.28%	2.21%	12.24%	14.40%	15.81%
WMT	47.98	0.38	0.80%	1.24%	3.94%	5.10%	0.90%	-0.70%	6.27%	4.90%
KO	48.55	-0.19	-0.39%	0.60%	-0.29%	-0.72%	-0.06%	10.22%	11.43%	17.16%
WFMI	45.72	-0.13	-0.28%	-1.95%	-2.83%	-5.22%	0.53%	-27.73%	-25.29%	-40.13%

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

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
UNH	55.10	0.65	1.19%	4.85%	3.22%	10.11%	4.81%	11.04%	14.65%	-11.88%
DNA	86.83	-0.57	-0.65%	3.76%	8.54%	3.59%	6.15%	4.10%	7.22%	0.80%
AMGN	73.27	1.36	1.89%	2.48%	7.04%	5.17%	7.12%	-1.11%	10.65%	-5.09%
AET	42.35	0.02	0.05%	2.29%	-3.11%	-1.92%	-1.24%	5.30%	7.98%	-7.41%
PFE	26.64	0.18	0.68%	1.29%	1.87%	5.84%	1.33%	-3.65%	14.93%	8.38%
BMET	41.73	-0.22	-0.52%	0.34%	1.16%	-0.24%	0.63%	23.94%	33.32%	14.39%
BMY	26.25	-0.29	-1.09%	0.27%	-0.15%	3.10%	-0.49%	6.71%	4.67%	16.87%
JNJ	66.64	-0.09	-0.13%	0.03%	0.95%	1.62%	0.36%	2.78%	9.93%	7.12%
GSK	53.75	0.68	1.28%	-0.39%	2.11%	1.42%	-0.11%	-0.96%	-2.71%	4.63%
NVS	58.19	0.19	0.33%	-1.79%	0.80%	-0.26%	0.09%	0.78%	4.62%	7.34%

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

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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
LEH	82.74	1.63	2.01%	7.82%	5.20%	7.92%	5.23%	7.93%	30.81%	21.82%
GS	213.99	2.11	1.00%	7.51%	5.96%	7.00%	6.61%	17.89%	47.31%	61.81%
MER	97.02	0.74	0.77%	5.46%	3.74%	7.39%	3.64%	16.15%	39.36%	37.34%
CSR	59.15	-0.11	-0.19%	2.76%	6.25%	7.66%	10.87%	15.73%	-1.00%	40.13%
MS	82.86	0.49	0.59%	2.47%	1.15%	5.69%	1.52%	8.53%	32.30%	0.00%
DB	134.79	2.53	1.91%	1.32%	0.52%	1.65%	-0.41%	8.48%	23.34%	29.91%
UBS	61.11	0.37	0.61%	0.96%	1.55%	0.38%	-0.46%	-2.22%	16.60%	17.07%
JPM	47.99	-0.32	-0.66%	0.42%	-1.96%	0.76%	-0.17%	-0.56%	13.59%	20.13%
C	54.38	0.21	0.39%	-0.71%	-3.60%	4.08%	-1.57%	8.37%	11.37%	10.91%
HBC	90.36	0.33	0.37%	-1.19%	-1.40%	-0.78%	-2.81%	-4.55%	2.36%	7.11%

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

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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
CTSH	81.43	0.52	0.64%	5.60%	4.80%	2.53%	4.72%	5.89%	24.95%	63.78%
INFY	58.09	2.01	3.58%	5.39%	6.16%	7.71%	4.07%	12.99%	41.86%	56.20%
INTC	22.13	0.21	0.96%	4.88%	8.48%	6.81%	8.75%	3.12%	23.77%	-14.79%
ADSK	43.75	-0.17	-0.39%	4.34%	7.28%	6.55%	7.86%	23.97%	38.45%	4.92%
QCOM	39.62	0.14	0.35%	2.40%	5.48%	1.96%	5.77%	1.75%	5.51%	-19.14%
SNDK	44.03	0.23	0.53%	1.69%	3.31%	3.65%	5.54%	-24.42%	0.16%	-42.98%
CSCO	28.93	0.24	0.84%	1.62%	5.89%	6.83%	4.29%	18.42%	58.43%	50.68%
ORCL	17.50	0.10	0.57%	-0.79%	2.34%	-2.72%