From my Daily Report of March 15 (8:23am ET) with the Dow 30 at 12,133.40:

I think there has been a reversal of capital flows – a bet on Benanke – that started yesterday afternoon -- originating from the boardrooms of HBB on Wall Street. Only in America can a distinct negative (ie, a collapsing mortgage financing system and failing housing market) be turned into such a positive. That’s the power of positive thinking -- a tribute to America. But it is also testimony that the US authorities are involved in this so-called free market up to their armpits.

The Dow +57 and Nasdaq +21 rebounded hard from declines of -136 and -19 points respectively, during the afternoon’s robust rally. Most of the reason was because of the besieged mortgage sector. After the WSJ reported Goldman Sachs (GS) was going to expand its own sub-prime lending business, shares of LEND (+52 pct) and NFI (+22 pct) soared. Meanwhile, with a broker upgrade to Outperform, Countrywide (CFC +2.7 pct) rallied. Brokers (XBD +1.3 pct) also rallied. Homebulders (XHB), which had plunged -17 pct in the past five weeks, rallied +2.5 pct.

These are interesting times.

Yes, these are very interesting times. Seven trading sessions after I wrote those words, the Dow 30 closed at 12,481.01, up +2.9 pct. Recall that in mid-session on the previous day, the global equity market was in a state of full-out collapse.

Today, however, technical analysts are a mere few points on the Dow from declaring a full-out Bull market. Think about that for a moment.

Alas, I think Charles Dow would turn over in his grave to see such meddling in markets by the US Administration, the Fed, Humungous Bank & Broker and Friends (Private Equity) and Family.

Is it not impressive that Goldman Sachs (GS), Morgan Stanley (MS) and Lehman Bros (LEH) can right on cue announce to the world that there is no problem in the Sub-prime mortgage industry big enough they can’t handle, and EVERY equity market in the world immediately stops selling off and instantly starts flashing green arrows?

I am not the only one asking these questions. The State of Massachusetts treasurer wants to know how, just as the Sub-prime mortgage industry was collapsing, HBB was publishing new upgraded BUY recommendations for it.

I posit that HBB could only put trillions of Other People’s Capital on the line if they had received the high sign from the Fed.

So, what is happening today is that inflation data, housing data, mortgage banking data, and so forth, if it can’t be buggered beyond belief, will be ignored.

Why? Well, that’s another hypothesis I have. It is to give the US Administration, the Fed, Humungous Bank & Broker and Friends and Family sufficient time to line up their ducks (ie, put options, stock sales, M&A deals, and so forth).

The equity market is not going higher because corporate fundamentals and guidance are pulling it up, but because a very few vested interests are pushing it higher. And they will do it until they can’t do it any longer. But by then they will have rotated their sectors, told their lies, and prepared themselves for the other side of the pendulum’s swing.

For now, being out of the room, out of the deal, you and I have to go along with this stuff. After all, we trade prices.

Besides, we are not in a bad position. We have our community to rely on.

---

Global Market Summary

International Equities: Strong performance across the globe. These bourses were up between +3 and +10 pct W/W, which goes to show that speculators who can get access to credit are willing to play the Bull side, and close their eyes to risk.

U.S. Equities : The broad indices in the US were up between +3 and +4 pct across the board. Humungous performance aided and abetted by the Fed.

Dow 30 : This week, there was not a single Dow stock that pulled back. The gain in market cap by the five biggest caps was phenomenal – not a natural phenomenon, but humungous in any case: XOM +7.33 pct; GE +4.25 pct; MSFT +2.52 pct; C +4.42 pct; and WMT +3.68 pct. Just two (XOM and GE) cranked up +$60 billion in market cap in five days. But, who’s counting anyway? It’s only debt!

U.S. Sector ETFs: All ten of the US sector ETF’s was up this week.

First segment: most influenced by global commodities, forex and capex spending
10: Energy (XLE): #1 (+6.8 pct); Because of a 2-day oil price rally?
15: Basic Materials (XLB): #8 (+3.0 pct); Friday LME problems though
20: Industrials (XLI): #6 (+3.2 pct); Even truckers gain when fuel costs jumped
Second segment: most influenced by U.S. consumer spending and economic growth
25: Cons. Discretionary (XLY): #3 (+3.6 pct); Ditech? No problem for GM (+9.7 pct)
30: Cons. Staples (XLP): #5 (+3.3 pct); Booze (ABV and DEO) +4.5 pct
35: Healthcare (IYH): #9 (+2.2 pct); JNJ and AMGN still pulling it down
Third segment: most influenced by U.S. interest rates and general economic health
40: Financial (XLF): #4 (+3.4 pct); MS +9.0 pct in 1 week? Gimme a break.
45: Tech (SMH chips): #10 (+0.8 pct); SNDK +10.6 pct W/W (+16.3 pct 4 wks)
50: Telecom Service (IYZ): #7 (+3.1 pct); T +5.1 pct; VZ +5.0 pct; VG, don’t call
55: Utilities (XLU): #2 (+3.8 pct); Hedge fund happiness

Bonds: “The US Bond market dropped a bit as some bond traders took note of higher inflation data and others simply decided to swing into equities to catch the rally.” Same old.

Commodities: $CRB rallied +6.50 (+2.14 pct) thanks to some Brit sailors being captured.

Oil & Gas: $WTIC futures gained +2.70 (+4.5 pct) to 62.28, mostly Thursday and Friday, but the market seems oblivious. Iran cancels UN visit, says visas held up (UK influence maybe?). UN says Iraq too dangerous, after televised bombing incident.

Gold: The Precious Metals dipped Friday along with more nonsense from LME inventories. No matter; gold was up +3.40 (+0.52 pct) on the week.

Goldminers: The goldminers were up between +2.4 and +3.4 pct W/W, which only lagged the US broad market indices because of Friday’s metal pullback.

Forex: The $USD rallied a bit on Friday, which was enough to cause a small gain on the week. Do we need another Iran/Iraq incident next week to help the $USD again?

Economic calendar for next week.

---

Cara Stock Watch

Whenever the hedge funds and private equity players have virtually unlimited access to credit, stock prices will fly high.

Here are the Cara 100 gainers on Friday.

Interactive chart of the top 12 Watch List gainers

---

Here are the top Cara 100 losers for Friday.

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

Note that all five of the biggest losers on Friday were tech companies and the top four are US-based. Could traders be thinking ahead to anticipated forward guidance from tech industry management?

Even given the humungous rally in the past six and a half sessions, the losers for March are the Banks, Consumer Discretionary and Techs. These are three sectors the Bulls know (in their heart if their minds are a bit askew these days) that must be the leaders of a new Bull phase.

Here are the stocks of the Cara 100 for Friday that hit 52-week intra-day highs.

---

Sector ETF Review

The tables I show are for ten Sector Index Funds (ETF’s) only.

As for this week’s prices, of the ten sector ETF’s I follow here, not a single one was down this week. In fact, the gains in all but SMH were truly impressive.

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
XLE	60.22	0.30	0.50%	6.79%	4.91%	2.68%	6.43%	2.78%	17.32%	12.67%
XLU	39.85	0.19	0.48%	3.78%	4.32%	3.05%	8.23%	8.97%	18.78%	26.31%
XLY	38.66	0.05	0.13%	3.59%	1.05%	-2.99%	0.36%	1.12%	12.45%	14.38%
XLF	36.20	0.04	0.11%	3.37%	0.92%	-2.95%	-1.95%	-0.96%	5.79%	10.06%
XLP	26.79	0.06	0.22%	3.32%	2.17%	-0.11%	1.94%	2.76%	5.22%	11.72%
XLI	36.36	0.21	0.58%	3.15%	2.57%	-0.66%	3.21%	3.86%	12.29%	7.86%
IYZ	31.12	-0.19	-0.61%	3.11%	2.30%	0.32%	4.92%	7.02%	11.90%	20.62%
XLB	38.22	0.16	0.42%	3.02%	2.44%	-0.47%	10.43%	10.81%	22.97%	19.18%
IYH	67.21	-0.47	-0.69%	2.19%	0.95%	-1.77%	1.13%	1.46%	3.35%	3.19%
SMH	34.36	0.01	0.03%	0.79%	-0.72%	-3.37%	2.35%	3.21%	3.03%	-4.18%

You can do this table yourself by entering the following string into the Summary window at Billcara2.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 because the list of ETF’s growing incredibly fast.

---

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)

---

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

This week, XLE rocketed up +6.79 pct to 60.22. $WTIC (Crude futures) gained +2.70/bbl (+4.5 pct) to $62.28. Note that there was a change in the contract month, so the data looks a little funny.

Nigeria and the Middle East (the Gulf just off the coast – perhaps in Iraq, perhaps in Iran) were the “hot” spots this Thursday and Friday.

I continue to believe that Crude Oil ($WTIC) will stay in a trading range between 55 and 65 for the near future. A serious recession could take the price below that trading range, but not for more than one or two quarters I believe. Hurricane season could take prices higher, but probably not far or for long.

---

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
PBR	95.05	0.48	0.51%	10.29%	5.30%	-0.59%	-4.63%	-3.14%	23.97%	11.43%
IMO	37.19	0.78	2.14%	9.58%	3.91%	2.34%	4.29%	4.20%	13.66%	-63.63%
ECA	49.99	0.46	0.93%	8.86%	4.39%	3.52%	10.26%	6.63%	11.58%	6.86%
CVX	73.70	0.77	1.06%	8.25%	7.64%	3.70%	3.85%	1.33%	18.99%	30.14%
STO	26.82	0.35	1.32%	8.01%	5.38%	1.02%	4.40%	2.09%	13.79%	1.06%
SU	72.98	0.50	0.69%	7.59%	3.31%	-0.87%	-1.26%	-6.33%	8.41%	-3.40%
XOM	74.98	0.62	0.83%	7.33%	5.43%	-0.32%	1.17%	-0.57%	15.51%	22.42%
TOT	68.79	0.71	1.04%	5.52%	3.87%	-1.12%	-3.07%	-2.37%	7.40%	7.70%
CEO	83.59	0.29	0.35%	4.32%	3.25%	0.89%	-11.33%	-5.02%	1.99%	1.44%

Big Oil was bigger than big this week. Bigger than Texas even. Chevron Texaco (CVX +8.3 pct) and Exxon Mobil (XOM +7.3 pct) put on a little weight– about $45 billion between them. That just happens to be the total market cap of Barrick and Newmont combined, which Big Oil packed onto themselves in a single week.

Integrated Oil & Gas - Canada

Oil & Gas Exploration & Production -Canada

The Canadian energy stocks recovered from their previous whacking: IMO rocketed +9.6 pct, ECA +8.9 pct, and SU +7.6 pct.

PetroBrasil (PBR), which had been down -4.5 pct the previous week, was up this week +10.3 pct.

Who needs Las Vegas and Macau? Just throw a torch into the Middle East and your cards come up a winner.

But, when do traders get unnerved by that?

And isn’t the issue really about expanding debt and speculation? I mean, how can oil prices rally, fuel costs explode and the stock prices of truckers balloon too?

---

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

The Basic Materials ETF (XLB) gained +3.02 pct W/W to close at 38.22.

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
GGB	18.17	0.24	1.34%	10.19%	6.63%	-1.78%	10.66%	14.56%	40.31%	-21.51%
RTP	226.00	2.00	0.89%	7.41%	7.29%	-1.90%	10.73%	9.33%	24.23%	16.46%
TS	44.44	0.86	1.97%	7.14%	0.27%	-6.97%	-8.41%	-10.89%	24.83%	24.06%
BHP	47.25	0.12	0.25%	7.05%	10.17%	2.05%	21.56%	21.87%	28.68%	27.77%
NUE	65.16	0.46	0.71%	5.68%	1.40%	1.16%	19.56%	18.11%	38.73%	28.27%
MT	52.65	0.53	1.02%	5.19%	0.92%	0.98%	29.04%	26.29%	58.01%	47.19%
TCK	69.01	0.07	0.10%	5.13%	1.34%	-6.84%	-0.35%	-4.17%	13.88%	0.00%
RIO	36.98	0.03	0.08%	4.29%	5.78%	0.79%	28.31%	26.56%	84.53%	68.09%
AA	34.19	0.50	1.48%	2.12%	2.98%	-2.54%	16.57%	16.93%	24.37%	15.82%
PKX	102.22	1.12	1.11%	0.87%	2.53%	3.40%	28.69%	23.75%	61.97%	66.02%

The steels and metals were very strong: GGB +10.2 pct, RTP +7.4 pct, and TS and BHP up +7.1 pct.

Tenaris (TS) recovered along with the oil price – as I said a week ago it would. Tenaris supplies the oil drillers and pipelines with tube steel.

The goldminers took a hit on Friday, but still managed a good gain on the week. The two I favor Kinross (KGC +6.7 pct) and Goldfields (GFI +6.2 pct) were very strong even after the pullback on Friday that had more to do with business in London at the LME, I think.

On Friday, the big movers were Goldcorp (GG +2.2 pct) and Yamana (AUY -2.5 pct), which makes it look like some funds were switching out of Yamana into Goldcorp. I don’t know, but I have been saying that Yamana is richly priced on a fundamental basis.

After the close on Friday, the one-year saga of US Gold (UXG) came to an end with the acquisition of three junior prospectors being formally acquired. Now that the regulators have been satisfied, I would think that the company now wants to announce the results of its extensive exploration activities in Nevada since December.

Now that the company can begin to promote itself again, I expect the share price to move back into the US$5 to $6 range. How quickly and how far north the stock price goes will, of course, depend on drill results and geological evaluations. As a pure minerals prospecting spec, I believe UXG is the best one on the board. That’s because I bet the jockey.

---

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

The Industrials and Transport sector ETF (XLI), aka capital goods producers, was up +3.15 pct W/W to close at 36.36 – a Chinese lucky number.

---

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
CAT	66.89	0.35	0.53%	5.91%	3.87%	-0.55%	9.37%	10.40%	6.56%	-12.29%
ABB	17.57	0.04	0.23%	4.83%	4.27%	-1.57%	-1.40%	0.69%	33.41%	48.02%
GE	35.82	0.01	0.03%	4.25%	4.37%	2.05%	-5.66%	-4.66%	4.13%	4.98%
MMM	77.97	0.19	0.24%	3.57%	4.34%	2.31%	-0.37%	-0.49%	6.71%	1.56%
UTX	66.73	0.65	0.98%	3.30%	3.46%	-1.21%	6.24%	6.67%	7.11%	13.58%
HON	47.71	0.13	0.27%	1.64%	1.02%	0.04%	5.79%	6.90%	18.56%	12.21%
FDX	112.71	2.08	1.88%	1.41%	-1.71%	-6.83%	2.68%	4.88%	6.30%	-0.26%
BA	90.98	0.41	0.45%	1.09%	1.64%	0.78%	2.03%	2.50%	17.77%	16.79%
ERJ	45.24	0.44	0.98%	0.87%	-0.42%	-1.22%	10.94%	11.70%	14.04%	14.50%

There were some solid gains this week with CAT +5.9 pct, ABB up +4.8 pct, GE (GE!) up +4.3 pct, MMM up +3.6 pct and UTX up +3.3 pct.

The Value Line Dow 30 component report this week is on Boeing (BA), which I will comment on later.

I am at a loss for words as to how the Transport share prices can rally when costs are rising so quickly. I still think the jury is out.

---

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

The Consumer Discretionary sector ETF (XLY) was up +3.59 pct W/W to close at 38.66 (another lucky Chinese number).

Two weeks ago, after a single week of recovery, I stated that, “Now technicians will be looking to see if a rising price can take the sector back up through the 50-day (10-week) Moving Average (39.09)” Then with that week’s loss of -2.5 pct, I opined, “I guess not.”

But a leopard doesn’t change its spots. I also stated, “If consumers are facing inflated bills/cost of living, and they are in debt and digging into savings at a rate not seen for generations, and their home equity is no longer available as a personal ATM, I somehow add the evidence to a conclusion that XLY is going either sideways or down.”

So, this week’s rally (+3.6 pct) was mighty impressive, but I don’t think it will be long lasting. Weeks maybe, but I don’t think many months.

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
CCL	48.12	0.28	0.59%	5.64%	4.02%	1.07%	-5.55%	-1.53%	7.65%	1.33%
WHR	87.63	0.50	0.57%	4.21%	-0.25%	-6.13%	3.51%	7.25%	-0.14%	0.25%
DIS	34.99	-0.34	-0.96%	4.11%	1.80%	-0.43%	2.31%	2.43%	16.32%	27.14%
JCP	82.23	0.78	0.96%	3.47%	2.39%	-2.17%	5.34%	3.34%	23.49%	33.93%
SBUX	31.42	-0.22	-0.70%	2.81%	3.66%	-4.03%	-10.87%	-12.31%	-7.62%	-13.04%
TM	133.18	0.38	0.29%	2.53%	0.03%	-1.71%	-1.57%	0.96%	24.46%	24.24%
NKE	109.05	0.45	0.41%	1.47%	3.02%	0.93%	11.65%	9.12%	26.27%	26.79%
BC	32.02	0.04	0.13%	1.43%	-3.79%	-6.04%	0.31%	1.36%	4.27%	-16.72%
EBAY	31.83	-0.53	-1.64%	0.28%	3.31%	-6.35%	5.50%	5.33%	21.91%	-14.80%

Nike (NKE) apparently has been running hard on their high-priced iPod’s in the shoe. I shoulda known. Get with the program, Bill.

This week, the winners here were Carnival Ships (CCL +5.6 pct), Whirlpool (WHR +4.2 pct), and Disney (DIS +4.1 pct). Makes sense to me. NOT.

---

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

The Consumer Staples sector ETF (XLP) gained +3.32 pct W/W to close at $26.79.

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	54.10	0.60	1.12%	4.52%	2.89%	3.38%	10.18%	10.91%	23.80%	29.21%
DEO	79.19	0.44	0.56%	4.49%	2.98%	-3.50%	-0.43%	1.07%	10.57%	24.47%
WMT	47.91	-0.10	-0.21%	3.68%	1.03%	-3.35%	0.76%	5.20%	-0.79%	-1.30%
PG	63.80	-0.05	-0.08%	3.55%	2.64%	-1.57%	-1.15%	0.00%	3.22%	8.78%
WAG	47.77	0.40	0.84%	3.26%	7.13%	5.41%	3.69%	2.34%	1.86%	7.18%
PEP	64.09	-0.02	-0.03%	2.43%	1.92%	-0.76%	2.18%	1.57%	-0.30%	8.39%
BUD	50.80	-0.10	-0.20%	2.34%	1.20%	1.50%	3.21%	3.89%	7.74%	17.40%
WFMI	45.02	1.08	2.46%	1.81%	-2.17%	-10.80%	-1.01%	-5.58%	-24.07%	-30.47%
KO	48.05	-0.20	-0.41%	1.78%	1.01%	1.67%	-1.09%	-0.68%	9.23%	13.30%
MO	85.47	-0.68	-0.79%	0.87%	-1.60%	0.11%	-1.20%	0.81%	3.83%	17.48%

Our case study, Whole Foods Market (WFMI) had a gain on the week of +1.8 pct, after Friday jumping +2.5 pct. I wonder if the market overheard me setting up a business meeting at Whole Foods Market on Sunday at 10:00am ET? I might even buy some wholesome natural foods to go along with my Flor-Essence herbal tea that I started on this weekend.

The booze guys ABV and DEO must have enjoyed St Paddy’s Day. Both were up +4.5 pct on the week.

Procter & Gamble (PG) was the beneficiary of some HBB upgrades this week. The stock was up +3.6 pct to $63.80.

You know, when the PG stock hit below $61 in mid-month, the RSI-7 dropped to the 30-level for the Weekly and Daily. That would have been an opportune time to buy the stock or at least write put options.

But the long-term (Monthly price series) data is still too high for me to want to take heavy positions at times like that. It’s just a short-term trade when the RSI-7 of both the Weekly and Daily price data drops to the 30 line.

---

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

The IYH healthcare ETF gained +2.19 pct W/W to close at 67.21. That’s a pretty big jump, but the ETF itself was only the 9th best performer out of ten this week.

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	56.51	0.82	1.47%	6.36%	6.62%	6.56%	7.49%	5.72%	15.40%	0.25%
AET	45.20	-0.44	-0.96%	4.65%	3.34%	-1.87%	5.41%	4.46%	17.95%	-10.58%
BMY	27.60	-0.19	-0.68%	2.91%	2.53%	2.03%	4.62%	6.15%	10.14%	8.24%
PFE	25.66	-0.13	-0.50%	2.68%	0.98%	0.16%	-2.40%	-1.19%	-8.88%	-1.87%
DNA	82.56	-2.72	-3.19%	1.33%	1.20%	-3.43%	0.93%	2.75%	5.21%	-3.92%
GSK	54.84	-0.64	-1.15%	0.53%	-1.35%	-3.65%	1.91%	4.68%	1.57%	3.45%
BMET	42.40	-0.06	-0.14%	0.36%	0.66%	0.02%	2.24%	3.49%	31.60%	23.72%
NVS	57.12	0.04	0.07%	0.02%	1.51%	-2.61%	-1.75%	-0.99%	-2.18%	3.01%
JNJ	60.51	-0.35	-0.58%	0.00%	-2.62%	-5.67%	-8.87%	-7.83%	-5.39%	-0.49%
AMGN	58.02	-2.45	-4.05%	-2.13%	-4.67%	-12.40%	-15.18%	-15.56%	-18.15%	-20.30%

JNJ was flat and AMGN dropped -2.1 pct on the week after dropping -4.1 pct on Friday. Genentech (DNA), the biotech leader also dropped -3.2 pct on Friday, but managed to eke out a +1.3 pct gain on the week.

There is a lot happening in this space this week, what with denials from FDA as well as a major industry convention happening in New Orleans.

That ought to stir things up. But the winners this week were the care providers UNH +6.4 pct and AET +4.7 pct.

---

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

The Financials ETF (XLF) gained +3.37 pct W/W to close at 36.20. That’s the 4th best performer this week, but still one of the worst over the past four weeks.

As CFO Leisa points out, it is important to watch the loan loss provisions, and the margin calls, and the litigation, of the banks from this point on.

---

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
MS	81.10	-0.03	-0.04%	8.99%	6.71%	0.16%	-0.64%	1.76%	12.98%	31.72%
MER	85.68	0.64	0.75%	7.23%	3.29%	-3.77%	-8.47%	-5.72%	9.68%	10.83%
DB	133.62	0.38	0.29%	6.84%	2.79%	-4.49%	-1.27%	1.28%	13.06%	18.00%
GS	211.89	1.81	0.86%	6.48%	5.05%	-2.13%	5.56%	6.97%	26.49%	39.70%
UBS	60.17	0.39	0.65%	5.28%	3.23%	-2.53%	-1.99%	1.81%	2.07%	10.46%
C	51.72	-0.12	-0.23%	4.42%	2.76%	-3.81%	-6.39%	-5.19%	4.48%	8.27%
LEH	73.50	0.33	0.45%	3.24%	-3.07%	-7.01%	-6.52%	-4.37%	3.71%	2.24%
JPM	48.52	0.05	0.10%	3.17%	-0.61%	-4.92%	0.94%	1.36%	3.63%	15.41%
HBC	88.38	0.24	0.27%	3.04%	0.22%	-0.42%	-4.94%	-2.77%	-2.70%	4.78%
CSR	59.15	-0.11	-0.19%	2.76%	6.25%	7.66%	-1.68%	0.00%	6.50%	7.12%

These financials, Morgan Stanley (MS +9.0 pct), Merrill Lynch (MER +7.2 pct), Deutsche Bank (DB +6.8 pct), Goldman Sachs (GS +6.5 pct), UBS (UBS +5.3 pct), and Citi (C +4.4 pct) can zoom on the words of Bernanke – only for so long. You won’t see gains like that for too long.

But the M&A work, the IPO’s, the prime brokerage to private equity and to hedge funds, and so forth can continue for quite some time, so it’s not a group (XLF) to short. I learned that lesson about 50 pct lower – probably my worst decision ever.

The fact is that with HBB and the Fed, you and I are out of the room, out of the deal. We’ll get suckered every time.

And then, there’s going to be a financial accident. Who knows what, but I surmise that the unwinding of credit default swaps will have something to do with it.

This time around, the litigators at HBB managed to save their bacon with humungous lawsuits and threats against the Sub-prime mortgage industry. They’ll end up owning that industry – and having the arrogance of telling us they wanted it because the business is soooo good. NOT.

A while back it was the tightening of the People’s Bank of China, and before that the commodity traders like Refco and the commodity hedgies like Amaranth that caused a shake up. In previous cycles, it was Russia, or Japan or Argentina, Brazil, Mexico – you name it. There is always something at fault, and guess what, it’s never HBB’s fault or the Fed’s fault.

But it’s always your money they happen to lose, and then ours they gain back via exorbitant credit card and ATM transaction fees. And then you have a banker like Brian Hunter who traded Amaranth clients down a multi-billion dollar sewer who now has no problem raising a billion to start his own fund.

That’s right, but I told you all this was going to happen because these traders skim the cream and then depart, leaving the clients holding the bag. On a multi-billion fund, a trader like Hunter can personally win several hundred million dollars of your money when he’s lucky and when he’s not, and you lose multi-billions, he’s off planning his next venture. It’s all legal.

There ought to be a law that when clients get ripped off multi-billions, the guilty party gets to go to jail or at least stopped from trading in securities for a time. Well actually there is a law – one for you and me and a different one for them, the people who run HBB and their friends who make them gazillions in fees and trading profits.

Isn’t it amazing that just before Morgan Stanley cranks out the most humungous performance quarter in its history that the stock tanked. And now look at it. It’s why I tell you to watch that RSI-7!

Still, it’s been a tough March for HBB – unless you were part of Bernanke’s call to Friends & Family.

---

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

This week SMH gained +0.79 pct to close at 34.36. Friday was flat.

---

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	44.88	1.38	3.17%	10.62%	13.88%	16.27%	7.57%	6.78%	-18.96%	-19.94%
ADBE	42.79	-0.08	-0.19%	9.24%	9.27%	5.32%	7.19%	5.01%	15.46%	17.78%
ORCL	18.22	-0.27	-1.46%	9.23%	9.56%	8.32%	4.05%	6.49%	3.88%	32.03%
CTSH	92.93	-0.06	-0.06%	4.62%	1.56%	-1.75%	19.51%	22.18%	27.93%	62.38%
INFY	52.77	-0.67	-1.25%	3.03%	-2.31%	-8.53%	-5.46%	-0.30%	14.49%	44.54%
ADSK	38.38	-0.57	-1.46%	2.62%	-0.42%	-9.63%	-5.37%	-4.15%	6.35%	4.55%
CSCO	26.19	-0.18	-0.68%	0.77%	0.42%	-4.80%	-5.59%	-2.75%	14.47%	22.33%
INTC	19.27	0.11	0.57%	0.63%	0.89%	-7.18%	-5.31%	-4.03%	1.05%	-2.18%
SAP	45.57	-0.71	-1.53%	0.51%	-1.00%	-0.68%	-14.34%	-12.65%	-6.31%	-12.93%
QCOM	42.57	-0.78	-1.80%	-2.54%	6.05%	-1.82%	13.64%	12.59%	12.44%	-14.14%

The winners this week were SanDisk (SNDK +10.6 pct), plus Adobe and Oracle (ADBE and ORCL +9.2 pct). Over four weeks, this is the Big Three.

SanDisk (SNDK $44.88) was noted by me on March 1 (Daily Report) as being in the Accumulation Zone. The price was $37.01.

Micron Tech (MU $11.59) was also noted by me on March 1 as being in the Accumulation Zone. The price was $11.86.

Do you recall what I added to the follow-up blog article at 12:13 pm that same day?

But, while MU is in the Accumulation Zone, I also said I was not yet buying the stock. I feel that another cycle down in the market will take MU to possibly a new low. In any event, I don’t think the stock is going to run away to the upside and I like the prospect of staying in cash longer. Time, you see, is our most valuable commodity.

Sometimes I get it right and sometimes I’m wrong. The real point I try to make is that traders need a discipline and a pre-set time horizon. So, yes, I was willing to take a very minor flyer on SNDK, which happened to work out because some of HBB issued ratings upgrades. I continued to avoid MU, not because I didn’t like the company, but because I didn’t think the time was right.

Maybe the time is right? Maybe not. One thing for sure is that I am not going to turn this blog into a tout sheet. I am only interested in building a community of like-minded students of the market who want to discuss the principles of trading.

---

Sector 50 (telecom: IYZ, VOX and IXP)

The U.S. telco sector ETF (IYZ) gained +3.11 pct W/W, which is a catch-up of sorts. There will not be too many weeks where AT&T (T) and Verizon (VZ) are up +5.1 pct and +5.0 pct respectively. Not in a single 5-session week.

---

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

IYZ Monthly data:

IYZ Weekly data:

IYZ Daily data:

IYZ Hourly data:

Possibly the worst IPO brought out by HBB in the past year was Vonage (VG). On Friday, a judge ordered he company to disconnect its Internet phones from the regular telco lines on account of the fact Vonage was improperly using patents owned by other telephone companies.

I point this out because Vonage is not a Cara 100 company, and because it is a broken company. So, regardless of how low the RSI-7 drops, I’m just not interested.

Gamblers and insiders may be interested. But, not me.

In the following chart, I ran T against VG from the start of June. Can you imagine what your portfolio would look like if you had switched out of a “sleeper” like AT&T into he “talk of the town” Vonage? I’m sure there were traders who did that and many of them were, I am guessing, “sophisticated” hedge fund managers.

---

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

The Utilities ETF (XLU) gained +3.78 pct, to close at 39.85.

There was a time a year or more ago that I gave my strident opinion that XLU would never beat the 33 level (or somewhere so far down there I cannot recall). Next to XLF, the mistake I made with XLU was near the top of the list.

The problem is that I always believed (and still do) the inflation story, and I thought that interest rates would have moved much higher before now. It didn’t happen because (I believe) the Fed has pumped an incredible amount of liquidity into the system (to avoid a mortgage, banking and home-owner debt crisis) at the same time that HBB honed its skills at trading credit default swaps. Concern for risk went out the window, and so the interest-sensitive utilities and telcos just kept on moving like the Energizer Bunny. The charts are phenomenal.

Until we see a yield on the 10-year US Treasury Note that exceeds 5 to 5.25 pct (vs this week’s 4.59 pct), it looks like clear sailing for XLU.

This story is not about revenue growth or earnings momentum or solid management and so forth. It’s about too many dollars chasing too few high-quality, high-dividend-paying stocks at a time that bonds are in favor because interest rates are artificially too low. If bonds were a better alternative (with higher yields that would likely fall during economic slowdowns), then XLU and IYZ would look like two-buck chuck rather than the champagne they represent today.

This is not news – more like a mea culpa. The real point is that we traders must trade prices. Prices happen for reasons w might not be aware of, or agree with, at the time.

---

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

XLU Monthly data:

XLU Weekly data:

XLU Daily data:

XLU Hourly data:

---

Bond & Interest Rate Review

US Treasury bonds dropped in price this week as the yields lifted +11, +7, +4, and +1 basis points (bp) to 4.78 pct, 4.59 pct, 4.49 pct and 4.58 pct respectively on the 30-year, 10-year, 5-year and 2-year paper.

And, the T-Bill yield dropped from 4.87 pct to 4.85 this week, which is a -16 bp move from 5.01 pct in three weeks. Most of that happened before the FOMC announcement this week by traders who had figured out (or were somehow advised) that the Fed would go soft on inflation here.

A week ago I opined,

On its own, the recently released economic data points (eg, PPI and CPI) do not offer up any rationale for rapidly falling Treasury yields. Hence, if there is any recovery here in stock prices, I expect these yields to move back up – as they did a week ago.

In other words, I do not yet believe that traders are betting on recession and deflation. Metals and precious metals prices lifted this week, and the inflation data that the US govt published on Thursday and Friday shows no let up in the inflation cycle.

I’d say I got that right.

One thing confused me however. On Friday, the Talking Heads on Bloomberg TV were saying there had been an end to the yield curve inversion. I don’t know what country they may have been referring to.

There is still an inverted yield curve in the US. At the close Friday, the negative spread between the 30-year T-Bond and the 3-month T-Bill was -7 bp. There was a negative spread of -1 bp between the 10-year and two-year Treasury paper. And there was a negative spread of -27 bp between the two-year and 3-month paper.

Why the misleading stories?

Interest rates and bond yields.

Weekly data charts:

Interactive Daily data charts:

Interactive Hourly data charts:

---

US Treasury Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
3 Month	4.85	4.88	4.87	5.01
6 Month	4.86	4.85	4.89	4.92
2 Year	4.58	4.56	4.57	4.82
3 Year	4.51	4.48	4.49	4.71
5 Year	4.49	4.46	4.45	4.66
10 Year	4.59	4.56	4.52	4.67
30 Year	4.78	4.75	4.67	4.79

Municipal Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
2yr AA	3.48	3.43	3.50	3.67
2yr AAA	3.50	3.51	3.48	3.58
2yr A	3.67	3.68	3.65	3.63
5yr AAA	3.55	3.55	3.51	3.60
5yr AA	3.57	3.55	3.46	3.53
5yr A	3.66	3.60	3.57	3.64
10yr AAA	3.67	3.73	3.63	3.70
10yr AA	3.63	3.72	3.59	3.70
10yr A	3.97	4.03	3.93	4.00
20yr AAA	4.13	4.15	4.18	4.09
20yr AA	4.43	4.45	4.48	4.09
20yr A	4.05	3.95	4.08	4.05

Corporate Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
2yr AA	4.95	4.93	4.96	5.05
2yr A	5.00	4.99	4.98	5.14
5yr AAA	4.96	4.93	4.93	5.09
5yr AA	5.08	5.05	5.05	5.16
5yr A	5.10	5.08	5.06	5.19
10yr AAA	5.22	5.18	5.14	5.38
10yr AA	5.42	5.40	5.38	5.43
10yr A	5.48	5.46	5.42	5.46
20yr AAA	5.92	5.87	5.81	5.79
20yr AA	5.89	5.76	5.68	5.87
20yr A	6.06	6.01	5.95	5.93

---

Interactive Chart of Interest rates and bond yields.

---

TLT and AGG had losses this week of -1.19 pct and -0.17 pct.

A week ago, I wrote, “Fannie (FNM) (-3.2 pct), Freddie (FRE) (-4.0 pct) and Countrywide Financial (CFC) (-3.2 pct W/W), along with the broad Financial sector (XLF) (-2.4 pct), all were hit hard as traders started to realize that the housing and mortgage market problems are greater than just in the Sub-prime area.”

This week, after Humungous Bank & Broker claimed that the Sub-prime market was not a serious problem for the US financial system, everything turned on a wooden nickel.

Countrywide Financial (CFC) (+5.35 pct), Fannie (FNM) (+5.28 pct), and Freddie (FRE) (+4.79 pct), as well as XLF (+3.37 pct) all had solid recoveries. Apparently, America has nothing to worry about.

We shall see.

---

US Bond Funds -- Interactive 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 -- Interactive 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:

---

A week ago I opined, “It’s possible that stocks and bonds will now start to trade countercyclically, ie, as bonds fall, stocks rally or as bonds rally, stocks fall.” This week, it was stocks up and bonds down. Another opinion worked out right. (LOL)

US Bond Funds -- Interactive 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 -- Interactive 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:

---

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	36.83	0.45	1.24%	5.35%	2.02%	-6.36%	-12.54%	-10.95%	5.08%	1.18%
FNM	56.63	-0.12	-0.21%	5.28%	1.93%	-4.81%	-5.40%	-5.11%	5.83%	3.85%
FRE	62.37	0.13	0.21%	4.79%	0.65%	-4.05%	-8.13%	-8.27%	-2.81%	-2.87%
SHY	80.37	-0.05	-0.06%	0.00%	0.21%	0.24%	0.41%	0.11%	0.09%	0.49%
TIP	100.98	-0.09	-0.09%	0.00%	0.53%	1.14%	1.76%	1.64%	-0.04%	-0.38%
AGG	100.41	-0.09	-0.09%	-0.17%	0.18%	0.12%	0.50%	-0.10%	0.35%	1.02%
IEF	83.27	-0.07	-0.08%	-0.34%	0.16%	0.63%	0.71%	0.19%	0.01%	1.47%
TLT	88.79	-0.22	-0.25%	-1.19%	-0.68%	-0.06%	-0.31%	-0.67%	-0.92%	0.40%

A week ago I opined, “I’m thinking that with CFC, FRE and FNM continuing their descent, the issue has more to do with accounting provisions for loan losses than with interest rates.” Yes, this week rates increased but the Big Three lenders rocketed up when Humungous Bank said, “No worry, mon. Be happy.”

I still worry, mon. I want to see those loan loss provisions.

---

Consumer Finance -USA -- Interactive Weekly Data Charts

---

Consumer Finance -USA -- Interactive Daily Data Charts

---

Consumer Finance -USA -- Interactive Hourly Data Charts

---

A week ago I wrote, “Somebody asked if it was time to buy Countrywide Financial (CFC). I think CFC was good for a short-term trade on Tuesday after the Weekly and Daily RSI-7 dipped below 30. But not now. Today the Monthly-Weekly-Daily RSI-7 for CFC is 40.7/24.9/38.5.”

That would have been quite a short-term trade if you caught the one big move -- with the RSI-7 on the Hourly down at about 15 and sold a few days later when it hit 90.

---

Commodities Review

The Commodities Index ($CRB) gained this week +6.50 (+2.14 pct), closing at 310.94. As metals and precious metals lifted a bit; the big recovery was in the energy sector, mostly in Crude Oil ($WTIC up +4.5 pct).

A week ago I opined, “There could be a rally in $CRB, but I continue to believe that the Weekly and Daily charts of the $CRB look awfully much like any rally would be headed off by a falling MA line at about 316.”

So, $CRB is now at 311, so 316 is getting close. I think Crude Oil ($WTIC) will have to go above 66 for $CRB to rally past 316. If it does, the talking Heads will start worrying about the next FOMC meeting.

---

Interactive Chart of Weekly CRB Commodities Index:

Interactive Chart of Daily CRB Commodities Index:

---

Oil:

After West Texas Intermediate Crude ($WTIC) finally pulled back after a string of wins, this week $WTIC zoomed higher again. Was it mere profit taking or were traders not impressed by the friendly talk of the OPEC Oil Ministers this week, as they seemed to be saying that 55 Oil would be ok with them.

$WTIC gained 2.70/bbl but the contract month also changed. In all, the new contract moved up to 62.28, which is a gain of +4.53 pct W/W.

The 50-Day Moving Average (from StockCharts) is now 58.31, while the 200-Day MA is 64.07. Hence the current price (62.28) is above the 50-day MA (58.31), but well below the 200-day MA, which is still technically bearish, but less so.

The question is how much the military-political action in the Gulf (where many British sailors were captured in what they say was international waters during legally authorized procedures) is going to affect prices going forward.

Interactive Chart of Weekly Crude Oil:

Interactive Chart of Daily Crude Oil:

---

Gold:

This week, $GOLD gained +3.40/oz (+0.52 pct W/W) to close at 657.30. The gain would have been a better one had there not been a pullback on Friday among the metals and precious metals.

On Friday, $XEU dropped -0.31 pct and the $USD gained +0.26 pct on the day, so $GOLD responded accordingly.

$GOLD on Friday dropped -1.04 pct. This wasn’t all the result of a rallying $USD, I feel, but mostly to do with inventory issues at the London Metals Exchange, mostly to do with nickel and other metals.

The 50day MA is now at 655.84 and the more important 200day MA is at 625.48. So technically $GOLD is bullish. That means (to me) that $GOLD is forecasting inflation, not deflation.

---

Interactive Chart of Weekly Gold EOD Continuous Contract Index:

Interactive Chart of Daily Gold EOD Continuous Contract Index:

Interactive chart of recent trading for the Gold Bullion index.

---

This week, $SILVER gained just a penny (+0.09 pct) to close at 13.23.

The loss on Friday was -1.88 pct, so Friday caused the damage.

The 50-day MA is 13.45 (so the current price at 13.23 is still technically short-term negative) and the 200-day MA is 12.37 (so the case is Bullish).

We’ll have to see what Monday brings. Except for Friday, things had been going my way.

Interestingly, however, Silver Wheaton (SLW) did have a good day on Friday, and so I’m thinking that the silver stocks will continue to strengthen into this week.

Interactive 60-minute data

---

Interactive Chart of Weekly Silver EOD Continuous Contract Index:

Interactive Chart of Daily Silver EOD Continuous Contract Index:

Interactive chart of the Silver Bullion index.

---

$PLAT gained 14.20 (+1.16 pct) W/W to 1239.10. A week ago, I opined, “Please note that 1229.10 was the most recent cycle high, so a new cycle high could be set this week.” Bingo.

The 50-Day MA for $PLAT is now 1203.97 and the 200-Day MA is 1184.79, so $PLAT is Bullish.

Interactive Chart of Weekly Platinum EOD Continuous Contract Index:

Interactive Chart of Daily Platinum EOD Continuous Contract Index:

Interactive chart of the Platinum metal index.

---

$PALL gained +7.47 (+2.12 pct) W/W to close at 359.25. I’m happy because I like to see all four of the PM complex move higher in sync, and the week earlier $PALL had lost ground.

The 50-day and 200-day Moving Averages for $PALL are 348.90 and 331.68 respectively, which is below the current price, which means palladium is technically bullish.

There has been a bullish pattern here since early October (290.88).

Interactive Chart of Weekly Palladium EOD Continuous Contract Index:

Interactive Chart of Daily Palladium EOD Continuous Contract Index:

Interactive chart of the Palladium metal index.

---

Base metals have been very strong – at least until Friday. I still believe that the four major metal miners are squeezing the market. There was some huge debt underwritings needed to support their take-overs in the past year, and I believe the miners now want their “piece”.

$COPPER gained 5.80 (+1.93 pct) W/W to close at 306.90.

A week ago I opined, “this (bullish) trend might persist.”

The 50-day MA for $COPPER is 269.40, and the 200-Day MA is 315.25. Can the current price (306.90) surpass the 200-day MA soon? Well, it’s only $8.35 away.

Interactive Chart of Weekly Copper EOD Continuous Contract Index:

Interactive Chart of Daily Copper EOD Continuous Contract Index:

Interactive chart of the Copper metal index.

---

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
KGC	13.87	-0.15	-1.07%	6.69%	5.32%	-1.21%	21.45%	21.99%	16.46%	42.55%
GFI	18.17	0.00	0.00%	6.20%	6.76%	-1.62%	-0.87%	-1.78%	1.68%	-9.15%
GG	24.87	0.54	2.22%	3.80%	0.48%	-12.58%	-9.03%	-8.43%	10.00%	-7.03%
ABX	29.07	-0.02	-0.07%	3.56%	3.97%	-6.41%	-2.55%	-2.78%	-0.75%	12.81%
BVN	29.95	0.25	0.84%	3.38%	9.63%	2.39%	8.48%	11.13%	9.15%	28.27%
MDG	25.12	0.02	0.08%	2.36%	-0.40%	-17.23%	-4.45%	-7.34%	3.67%	-2.29%
NEM	43.54	0.03	0.07%	1.42%	2.96%	-7.07%	-1.49%	-3.29%	-0.55%	-11.58%
AUY	14.23	-0.36	-2.47%	1.14%	3.87%	-5.51%	15.41%	13.48%	55.69%	68.80%
AEM	38.09	-0.18	-0.47%	1.06%	3.56%	-7.21%	-2.13%	-5.06%	25.34%	42.55%
LIHRY	40.75	0.34	0.84%	0.02%	-10.54%	-7.20%	25.31%	0.00%	-12.37%	23.37%

The gold stocks and the base metal stocks enjoyed a good week.

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 AUY KGC BVN
Interactive 15-minute data
Interactive 60-minute data
Interactive Daily data
Interactive Weekly data

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

CBJ SSRI SIL NG KRY UXG GRZ TSE_HRG TSE_GUY TSE_AGI
Interactive 15-minute data
Interactive 60-minute data
Interactive Daily data
Interactive Weekly data

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

Here are the key Silver miners and the SLV ETF:

SLV SIL CDE HL PAAS SSRI SLW MGN

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

---

$XAU, GDX and (TSE’s) XGD were +3.35 pct, +3.24 pct, and +2.44 pct, respectively. Friday was a mixed day.

The $XAU index closed at 137.78. The 50d-MA (137.39) and 200d-MA (137.29) are now below the current price, which means that the PM stocks are now technically bullish. A week ago, I said, “they were technically bearish, but perhaps starting to recover.”

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

Weekly U.S. Goldminers Index:

Interactive Chart of Weekly U.S. Goldminers Index:

Interactive Chart of 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:

Interactive Chart of XGD Weekly data:

Interactive Chart of XGD Daily data:

---

Forex Review

The $USD closed at 83.30, a small gain (+0.09 pct) W/W. The $USD 50-Day MA is now 84.30, and the 200-Day MA is 85.03, so the current price (83.30) is technically still quite bearish.

The following data requires your attention: M3 update as of the past week.

M3 is growing at an excessive rate in order to pay for a war and for govt deficits not matched by taxes.

---

Interactive Chart of Weekly U.S. Dollar Index:

Interactive Chart of Daily U.S. U.S. Dollar Index:

---

The Euro (priced in USD) had a modest decline on the week, losing -0.17 pct W/W, closing at 132.90.

The $XEU 50-Day MA is 130.93, and the 200-Day MA is 128.77, so the current price (132.90) is technically still quite bullish.

Interactive Chart of Weekly Euro Dollar Index, priced in USD:

Interactive Chart of Daily Euro Dollar Index, priced in USD:

---

The British Pound gained +1.03 pct W/W to close at 196.17.

The $XBP 50-Day MA is 195.53, and the 200-Day MA is 190.65, so the current price (196.17) is technically bullish.

Weekly British Pound Index:

Daily British Pound Index:

---

The Japanese Yen had a significant loss against the $USD, losing -1.07 pct W/W to close Friday at 84.76. This is a surprise to traders who were expecting more unwinding of the carry trade as the quarter comes to an end.

The 50-Day MA is 83.67, and the 200-Day MA is 85.11, so the current price (84.76) is now just short-term bullish, but long-term bearish. More importantly, Dollar:Yen traders are having a difficult time handling the extreme volatility.

I suspects that’s so because both central banks are playing the game heavily.

Weekly Japanese Yen Index:

Daily Japanese Yen Index:

---

Weekly Canadian Dollar Index:

Daily Canadian Dollar Index:

The Canadian Dollar gained +1.28 pct W/W to close at 86.17 despite a loss of -0.23 pct on Friday.

The $CDW 50-Day MA is 85.25, and the 200-Day MA is 87.69, so the current price (86.17) is now short-term bullish and long-term bearish. The recovery in the price of Oil certainly helped the Canadian Loonie’s performance.

A stronger Loonie would hurt Cdn manufacturers and tour operators.

Interesting that the Tourism Toronto organization this week hired an individual from Miami as chief executive to replace the one who recently departed to take a job in Dallas. It’s a small world, and getting smaller. People move around.

---

International Equities Review

The international markets had a blow-out week. The Indian ETF (IFN) rocketed +9.67 pct. The Templeton Russia Fund was up +6.24 pct. The China FXI was up +6.12 pct W/W. Yes, these are weekly numbers. No need to go to Las Vegas or Macau.

My wife asked a strange question this week, “Do you really think you can stay on top of the market from Bahamas?” I think we all know I can do it from a hotel lobby, a beach cabana or the cockpit of a small boat.

It’s not that my wife is trying to talk me out of the move. She just needs reassurance.

---

Asia-Pacific indices (Interactive link)

European indices (Interactive link)

---

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
IFN	40.93	0.30	0.74%	9.67%	5.54%	-0.90%	-9.73%	-12.91%	-3.24%	-15.61%
EWZ	48.95	0.24	0.49%	7.91%	4.95%	-0.14%	4.82%	7.72%	35.37%	22.56%
TRF	71.34	0.93	1.32%	6.24%	3.63%	-4.43%	-19.44%	-21.85%	14.05%	-2.21%
FXI	102.95	0.89	0.87%	6.12%	4.78%	-2.32%	-11.55%	-0.81%	27.57%	40.55%
EWU	24.14	0.15	0.63%	4.96%	3.43%	0.42%	2.51%	4.41%	11.19%	19.45%
IEV	108.43	0.49	0.45%	4.86%	3.93%	-0.28%	2.68%	4.86%	13.52%	22.83%
EWC	26.09	0.06	0.23%	4.53%	3.24%	-0.50%	5.63%	4.23%	11.35%	11.50%
SPY	143.39	0.21	0.15%	3.51%	1.85%	-1.31%	1.43%	1.88%	9.07%	10.21%
EWJ	14.90	0.02	0.13%	3.40%	1.43%	-0.93%	4.93%	5.45%	12.88%	7.04%
QQQQ	44.12	-0.14	-0.32%	3.04%	2.77%	-2.52%	2.04%	2.77%	10.66%	7.37%

---

Japanese equity market ETF: EWJ

Japan’s EWJ (which is a USD-denominated NYSE-traded ETF) gained +3.40 pct W/W to 14.90. The Nikkei 225 gained from 16744 to 17480 (+4.4 pct).

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

Interactive EWJ Monthly data:

Interactive EWJ Weekly data:

Interactive EWJ Daily data:

Interactive EWJ Hourly data:

---

U.K. equity market ETF: EWU

The FTSE 100 of the UK lifted from 6130 to 6339 (+3.4 pct) while the EWU (UK market ETF trading in the US in USD) gained +4.96 pct.

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

Interactive EWU Monthly data:

Interactive EWU Weekly data:

Interactive EWU Daily data:

EWU Daily data:

Interactive EWU Hourly data:

---

Canadian equity market ETF: EWC

EWC (priced in USD) had a gain of +4.53 pct W/W to close Friday at 26.09, which is a phenomenal move for Canada. The TSX Composite (13,237.66) is at almost February’s record high of 13,433.

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

Interactive EWC Monthly data:

Interactive EWC Weekly data:

Interactive EWC Daily data:

Interactive EWC Hourly data:

(Japan, Taiwan, Hong Kong, Singapore)

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

(Canada, Mexico, Brazil, Australia).

---

U.S. Equities Review

All broad indexes in the US stock market rallied this week. The Nasdaq Composite and Russell 2000 small cap indexes gained +3.21 pct and +3.95 pct respectively, while the S&P 500 and Dow 30 gained +3.54 pct and +3.06 pct W/W.

There was not a single losing stock in the Dow 30 this week.

---

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

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

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

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

---

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
GM	31.99	1.67	5.51%	9.67%	3.23%	-6.63%	8.62%	8.74%	4.47%	45.41%
XOM	74.98	0.62	0.83%	7.33%	5.43%	-0.32%	1.17%	-0.57%	15.51%	22.42%
CAT	66.89	0.35	0.53%	5.91%	3.87%	-0.55%	9.37%	10.40%	6.56%	-12.29%
T	38.88	-0.23	-0.59%	5.14%	6.37%	5.08%	11.24%	11.15%	18.18%	44.00%
VZ	38.12	0.11	0.29%	4.96%	4.58%	-0.76%	0.79%	4.30%	2.75%	9.79%
C	51.72	-0.12	-0.23%	4.42%	2.76%	-3.81%	-6.39%	-5.19%	4.48%	8.27%
GE	35.82	0.01	0.03%	4.25%	4.37%	2.05%	-5.66%	-4.66%	4.13%	4.98%
DIS	34.99	-0.34	-0.96%	4.11%	1.80%	-0.43%	2.31%	2.43%	16.32%	27.14%
WMT	47.91	-0.10	-0.21%	3.68%	1.03%	-3.35%	0.76%	5.20%	-0.79%	-1.30%
MCD	45.05	0.56	1.26%	3.61%	2.04%	-2.09%	2.69%	3.40%	17.90%	30.43%
MMM	77.97	0.19	0.24%	3.57%	4.34%	2.31%	-0.37%	-0.49%	6.71%	1.56%
PG	63.80	-0.05	-0.08%	3.55%	2.64%	-1.57%	-1.15%	0.00%	3.22%	8.78%
AXP	57.43	-0.01	-0.02%	3.38%	0.93%	-1.02%	-4.85%	-5.62%	6.14%	8.15%
UTX	66.73	0.65	0.98%	3.30%	3.46%	-1.21%	6.24%	6.67%	7.11%	13.58%
JPM	48.52	0.05	0.10%	3.17%	-0.61%	-4.92%	0.94%	1.36%	3.63%	15.41%
MRK	44.45	0.28	0.63%	3.16%	-0.36%	3.52%	0.98%	3.78%	5.73%	22.79%
PFE	25.66	-0.13	-0.50%	2.68%	0.98%	0.16%	-2.40%	-1.19%	-8.88%	-1.87%
MSFT	28.02	-0.25	-0.88%	2.52%	2.71%	-3.04%	-6.16%	-5.47%	5.10%	4.28%
DD	51.03	-0.32	-0.62%	2.14%	-0.22%	-3.70%	4.06%	5.06%	20.58%	18.76%
AA	34.19	0.50	1.48%	2.12%	2.98%	-2.54%	16.57%	16.93%	24.37%	15.82%
IBM	95.03	-0.16	-0.17%	1.91%	1.88%	-2.76%	-2.30%	-0.23%	17.02%	14.22%
HD	38.22	-0.11	-0.29%	1.89%	-1.16%	-6.69%	-6.94%	-1.72%	6.28%	-12.76%
AIG	68.12	-0.09	-0.13%	1.87%	-1.38%	-0.97%	-5.59%	-4.95%	4.72%	1.43%
KO	48.05	-0.20	-0.41%	1.78%	1.01%	1.67%	-1.09%	-0.68%	9.23%	13.30%
HON	47.71	0.13	0.27%	1.64%	1.02%	0.04%	5.79%	6.90%	18.56%	12.21%
HPQ	40.43	-0.02	-0.05%	1.30%	0.80%	-0.96%	-2.86%	-0.49%	15.15%	22.52%
BA	90.98	0.41	0.45%	1.09%	1.64%	0.78%	2.03%	2.50%	17.77%	16.79%
MO	85.47	-0.68	-0.79%	0.87%	-1.60%	0.11%	-1.20%	0.81%	3.83%	17.48%
INTC	19.27	0.11	0.57%	0.63%	0.89%	-7.18%	-5.31%	-4.03%	1.05%	-2.18%
JNJ	60.51	-0.35	-0.58%	0.00%	-2.62%	-5.67%	-8.87%	-7.83%	-5.39%	-0.49%

You can do this table yourself by entering the following string into the Summaries window at www.billcara2.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 Billcara2.com that I broke into groups of ten, which you can add technical indicators for as well. (list one) (list two) (list three)

---

Dow 30 comments:

The report from Value Line this week is on Boeing (BA).

(BA: Value Line Report Mar. 23: next one is due Jun. 22)

Boeing is having a terrific run, with fabulous fundamentals, a terrific CEO in James McNerney Jr, a government that creates big demand for its products and a falling $USD to help sell them abroad.

What else could management ask for?

I think the Value Line analyst has short-changed Boeing with his conclusion that “the stock’s share-price surge (up 260 pct in the last four years), discounts much of the gains we expect.” His hi-low projection for 2010-2012 is 130-95. The stock today is $90.98.

When I look at the projected $1.40 dividend for 2008, and the projected $5.90 earnings (on top of 2007e earnings of $4.75), following a fully-diluted $3.62 for 2006, I can see a 12-month Price Target of $150 (25 times earnings).

Today, the stock is “perfectly” priced, so sometime soon I expect a pullback. I don’t know why except it has always happened. If you check the annual high-low from the top lines of the Value Line report, you will see a wide trading range each year.

In fact, I ran a quick calculation over the past 11 years to see that the average gap between low and high was 60.2 pct. My point is that “something” controversial always seems to come up with this stock to drive the price down – good years and bad.

So, when I look at this report, and see that the company is running along in 6th gear, and has most of the production slots filled for several years ahead, then I can easily accept Value Line’s projection of annual growth in earnings of +19.5 pct and in dividends of +11.5 pct between 2004-6 and 2010-12.

Over the years Boeing has suffered bad stories regarding funny stuff in obtaining govt contracts and funny stuff going on between a former CEO and a woman executive. Whatever. There always seems to be something. After MnNerney came over from 3M, I decided immediately to put Boeing on the Cara 100, and I’m glad I did.

Of course, I knew a falling $USD would help, and a War Against Terrorism, and an Airbus that suddenly couldn’t seem to get their act together, and so forth, but McNerney sealed the deal for me.

Now maybe McNerney gets hit by the proverbial bus – certainly Airbus wouldn’t stop him – or something else hits the wires to knock the BA price down to where the insiders and boys and girls at State Street Bank can no longer look a gift horse in the mouth. Then I’d be a buyer, and a put writer. In the Cramer vernacular, I’d load up the truck.

What is the only thing bothering me? Everybody knows the story. Since hitting a low under $25 in Feb-2003, the stock has bounded north to a Feb-07 high of $92.24. Even in a hot Southern California housing market, investors never made gains better than that on real estate. And just like real estate, everything has a cycle.

---

Alcoa [GICS 15, Dow 30]
(AA: Yahoo Finance file)
(AA: StockChart chart)
(AA: Billcara2 chart)
(AA: ADVFN Financial Data)
(AA: Value Line Report Jan. 19: next one is due Apr. 20)

---

Altria Group Inc [GICS 30, Dow 30]
(MO: Yahoo Finance file)
(MO: StockChart chart)
(MO: Billcara2 chart)
(MO: ADVFN Financial Data)
(MO: Value Line Report Feb. 2: next one is due May. 4)

---

American International Group [GICS 40, Dow 30]
(AIG: Yahoo Finance file)
(AIG: StockChart chart)
(AIG: Billcara2 chart)
(AIG: ADVFN Financial Data)
(AIG: Value Line Report Feb. 23: next one is due May 25)

---

American Express [GICS 40, Dow 30]
(AXP: Yahoo Finance file)
(AXP: StockChart chart)
(AXP: Billcara2 chart)
(AXP: ADVFN Financial Data)
(AXP: Value Line Report Feb. 23: next one is due May 25)

---

AT&T [GICS 50, Dow 30]
(T: Yahoo Finance file)
(T: StockChart chart)
(T: Billcara2 chart)
(T: ADVFN Financial Data)
(T: Value Line Report Dec. 29: next one is due Mar. 30)

---

Boeing Co [GICS 20, Dow 30. Cara 100]
(BA: Yahoo Finance file)
(BA: StockChart chart)
(BA: Billcara2 chart)
(BA: ADVFN Financial Data)
(BA: Value Line Report Mar. 23: next one is due Jun. 22)

---

Caterpillar [GICS 20, Dow 30]
(CAT: Yahoo Finance file)
(CAT: StockChart chart)
(CAT: Billcara2 chart)
(CAT: ADVFN Financial Data)
(CAT: Value Line Report Jan. 26: next one is due Apr. 27)

---

Citigroup [GICS 40, Dow 30, Cara 100]
(C: Yahoo Finance file)
(C: StockChart chart)
(C: Billcara2 chart)
(C: ADVFN Financial Data)
(C: Value Line Report Feb. 23: next one is due May 25)

---

Coca Cola [GICS 30, Dow 30]
(KO: Yahoo Finance file)
(KO: StockChart chart)
(KO: Billcara2 chart)
(KO: ADVFN Financial Data)
(KO: Value Line Report Feb. 2: next one is due May. 4)

---

Disney [GICS 25, Dow 30, Cara 100]
(DIS: Yahoo Finance file)
(DIS: StockChart chart)
(DIS: Billcara2 chart)
(DIS: ADVFN Financial Data)
(DIS: Value Line Report Feb. 16: next one is due May 18)

---

Dupont [GICS 15, Dow 30]
(DD: Yahoo Finance file)
(DD: StockChart chart)
(DD: Billcara2 chart)
(DD: ADVFN Financial Data)
(DD: Value Line Report Jan. 19: next one is due Apr. 20)

---

ExxonMobil [GICS 10, Dow 30, Cara 100]
(XOM: Yahoo Finance file)
(XOM: StockChart chart)
(XOM: Billcara2 chart)
(XOM: ADVFN Financial Data)
(XOM: Value Line Report Mar. 16: next one is due Jun. 15)

---

General Electric [GICS 20, Dow 30, Cara 100]
(GE: Yahoo Finance file)
(GE: StockChart chart)
(GE: Billcara2 chart)
(GE: ADVFN Financial Data)
(GE: Value Line Report Jan. 12: next one is due Apr. 13)

---

General Motors [GICS 25, Dow 30]
(GM: Yahoo Finance file)
(GM: StockChart chart)
(GM: Billcara2 chart)
(GM: ADVFN Financial Data)
(GM: Value Line Report Mar. 2: next one is due Jun. 1)

---

Hewlett-Packard [GICS 45, Dow 30]
(HPQ: Yahoo Finance file)
(HPQ: StockChart chart)
(HPQ: Billcara2 chart)
(HPQ: ADVFN Financial Data)
(HPQ: Value Line Report Jan. 12: next one is due Apr. 13)

---

Home Depot [GICS 25, Dow 30]
(HD: Yahoo Finance file)
(HD: StockChart chart)
(HD: Billcara2 chart)
(HD: ADVFN Financial Data)
(HD: Value Line Report Jan. 5: next one is due Apr. 6)

---

Honeywell [GICS 20, Dow 30]
(HON: Yahoo Finance file)
(HON: StockChart chart)
(HON: Billcara2 chart)
(HON: ADVFN Financial Data)
(HON: Value Line Report Jan. 26: next one is due Apr. 27)

---

IBM [GICS 45, Dow 30]
(IBM: Yahoo Finance file)
(IBM: StockChart chart)
(IBM: Billcara2 chart)
(IBM: ADVFN Financial Data)
(IBM: Value Line Report Jan. 12: next one is due Apr. 13)

---

Intel [GICS 45, Dow 30, Cara 100]
(INTC: Yahoo Finance file)
(INTC: StockChart chart)
(INTC: Billcara2 chart)
(INTC: ADVFN Financial Data)
(INTC: Value Line Report Jan. 12: next one is due Apr. 13)

---

Johnson & Johnson [GICS 35, Dow 30, Cara 100]
(JNJ: Yahoo Finance file)
(JNJ: StockChart chart)
(JNJ: Billcara2 chart)
(JNJ: ADVFN Financial Data)
(JNJ: Value Line Report Mar. 2: next one is due Jun. 1)

---

JP Morgan [GICS 40, Dow 30]
(JPM: Yahoo Finance file)
(JPM: StockChart chart)
(JPM: Billcara2 chart)
(JPM: ADVFN Financial Data)
(JPM: Value Line Report Feb. 23: next one is due May 25)

---

McDonalds [GICS 30, Dow 30]
(MCD: Yahoo Finance file)
(MCD: StockChart chart)
(MCD: Billcara2 chart)
(MCD: ADVFN Financial Data)
(MCD: Value Line Report Mar. 9: next one is due Jun. 8)

---

3M Company [GICS 20, Dow 30, Cara 250 June 25-06]
(MMM: Yahoo Finance file)
(MMM: StockChart chart)
(MMM: Billcara2 chart)
(MMM: ADVFN Financial Data)
(MMM: Value Line Report Feb. 16: next one is due May 18)

---

Merck [GICS 35, Dow 30]
(MRK: Yahoo Finance file)
(MRK: StockChart chart)
(MRK: Billcara2 chart)
(MRK: ADVFN Financial Data)
(MRK: Value Line Report Jan. 19: next one is due Apr. 20)

---

Microsoft [GICS 45, Dow 30]
(MSFT: Yahoo Finance file)
(MSFT: StockChart chart)
(MSFT: Billcara2 chart)
(MSFT: ADVFN Financial Data)
(MSFT: Value Line Report Feb. 23: next one is due May 25)

---

Pfizer [GICS 35, Dow 30]
(PFE: Yahoo Finance file)
(PFE: StockChart chart)
(PFE: Billcara2 chart)
(PFE: ADVFN Financial Data)
(PFE: Value Line Report Jan. 19: next one is due Apr. 20)

---

Procter & Gamble Co. [GICS 30, Dow 30, Cara 100]
(PG: Yahoo Finance file)
(PG: StockChart chart)
(PG: Billcara2 chart)
(PG: ADVFN Financial Data)
(PG: Value Line Report Jan. 5: next one is due Apr. 6)

---

United Technologies [GICS 20, Dow 30, Cara 100]
(UTX: Yahoo Finance file)
(UTX: StockChart chart)
(UTX: Billcara2 chart)
(UTX: ADVFN Financial Data)
(UTX: Value Line Report Jan. 26: next one is due Apr. 27)

---

Verizon [GICS 50, Dow 30]
(VZ: Yahoo Finance file)
(VZ: StockChart chart)
(VZ: Billcara2 chart)
(VZ: ADVFN Financial Data)
(VZ: Value Line Report Dec. 29: next one is due Mar. 30)

---

Wal-Mart [GICS 30, Dow 30, Cara 100]
(WMT: Yahoo Finance file)
(WMT: StockChart chart)
(WMT: Billcara2 chart)
(WMT: ADVFN Financial Data)
(WMT: Value Line Report Feb. 9: next one is due May 11)

---

Wrap up:

I got this Week In Review done rather quickly today. Tomorrow is going to be sunny and I decided to take a full break from the market. Somehow I think my day will involve a silica metal scavenger, and then a long walk with my wife along the waterfront.

You see, I have to be near gold and water. It’s part of my make-up.

And with my new regimen of Flor-Essence herbal tea, it’s only fitting I’ll be spending some time at Whole Foods Market.

When my friend from Santiago Chile told me about the Flor-Essence on Thursday, I immediately thought about the natural medicine concoctions of the Bahamas Family Island of Eleuthera. About ten years ago, on a local road somewhere between Green Castle and Bannerman Town, I was educated in the remedial qualities of 7-Bush and 14-Bush. It’s not a stretch to think that’s what Flor-Essence is made of.

Now if you ask my wife – who like me has traveled the world – just where she thinks the most beautiful place on earth is, she’ll tell you its Little San Salvador, which is a small island just off Bannerman Town at the southern tip of Eleuthera.

But she never heard of 7-Bush, unfortunately, and she has never been to a place 40 miles away from there in the Exuma Cays called Staniel Cay. That, my friends, is the most beautiful place on earth.

Now many of you who like cruising on the Holland America line know Little San by the name of Half Moon Cay.

And many of you know Staniel as the home of Thunderball Grotto of James Bond fame. Amazingly when I googled Thunderball Grotto, the first item was “The Travelogues of Dave and Diane”.

I couldn’t believe it, but there is Capt Dave Mathews, the friend who first took me to Staniel (and diving at Thunderball) and to South Eluthera (where we learned about 7-Bush and 14-Bush). Dave at the time owned TAO, which, when he built it as a youngster was the world’s largest trimaran. If you know the bridges between Paradise Island and Nassau, you’ll be interested to know his boat was so big we had to back through at dead low tide to clear the bridge.

Oh, the memories.

One day, I’m going to organize for some of my readers a trip through the southern Bahamas with Capt Dave. That would be the vacation of a lifetime. I guarantee it.

Enjoy your day. Wherever you are in the world, whether its New York, New Toronto, New Delhi or Nassau, I have a feeling we are on the same page.

And, by the way, with all the bed rest I had this week, I’m starting to feel better. But I’m not going to push it. I’m so much looking forward to that next trip with Capt. Dave that I couldn't bear the thought of missing it.

---