I have said here before that when these deals stop flowing, Hank Paulson and Prof. Bernanke will finally pull the plug on this over-priced market. The greatest transfer of wealth in the history of the world will have been completed, and America will have sprouted its own form of oligarch.

I call it Paulson’s Pride.

And we thought the debt bubble was about to burst a couple years ago. The Admin, Fed, HB&B and their Friends & Family were just getting started!

What happened in the post-Soviet era, when control of public sector owned assets fell inexplicably into the hands of Russia’s new business and finance elite, is the mirror opposite of what has happened (is happening) in America. In America, control of private sector assets is being transferred from independent owners and managers of capital (We The People) to a handful of connected players.

The mind boggles.

Surely Wiki will have to change its definition of Oligarch. Russia has nothing over America.

And when the game of Asset Transfer to the Connected Rich and Powerful (CRAP) is drawing to a conclusion, the Admin, Fed, and HB&B will pull the plug they will tell us they have to clean up the excessive liquidity in the system!). Then (just wait for it as equity prices fall), everybody will scream bloody murder that interest rates are too high, so they will then be pulled down by the Friends of CRAP, which will complete the circle. You see, the debts taken on by HPEC today is really, in the future, your debt and their asset.

As and when rates/yields plunge (following a collapse of the equity market), the value of HPEC's present debt will soar, after which they will securitize it and sell it back (in the form of a debenture) to We The People in America, and (they hope) abroad. The possible fly in the ointment of course is if, in the interim, interest rates in the US rise, like they are in Europe.

Do you not see what is going down here? We are handing our assets to HPEC. And after interest rates drop, which they will do in a recession or, at the least after equity prices suffer a Bear market, they will hand us back their debt. We will have effectively paid them to screw us.

Humungous Private Equity Corp will then call themselves Investment Bankers, which they think will legitimize their group, like today’s Humungous Bank & Broker (HB&B).

I believe that HPEC needs for Precious Metal prices to stay low until these deals are completed, otherwise the $USD will fall even faster than it has been. Hence, HPEC, HB&B, the Fed and the Admin have aligned their objectives. Whether or not this is a conspiracy is debatable, but there are relatively few of them in numbers, they have a united front, and they are personally enriching themselves off the backs of the rest of us.

If We The People don’t see what’s going on here, then it’s a case of Eyes Wide Shut.

This may be Independence Day, but, my friends, the Founding Fathers certainly did not have this kind of independence in mind. Just the opposite, in fact.

OK, yesterday was a half day in US markets. Let’s see what happened there and abroad.

The Goldminers ($XAU -0.21 pct) and Biotechs ($BTK -0.22 pct) were kept in check, and the REITs ($DJR -0.25 pct) and Utilities ($UTY -0.20 pct) were down on account of bond market prices backing down ($USB -0.49 pct) as Yields moved higher for both the 10-year Treasury Note ($TNX +0.80 pct) and 30-year T-Bond ($TYX +0.98 pct).

No surprises there. It was also not a surprise that the pre-Independence Day Rally carried almost all US major market and industry indices higher, as news was breaking that the Humungous lady has not yet started singing ‘The party is over’.

Her man is still playing us a tune.

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International Economics Review

US Economic Calendar

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US Equity Markets Review

DJIA (interactive) chart

The DJIA lifted +0.31 pct.

The Dow Utilities and the REITs, and obviously the US Treasury Bonds, were weak, which means that interest yields were up and the Fed was tightening (ie, selling bonds to HB&B).

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NASDAQ Composite (interactive) chart

The NASDAQ Composite lifted +0.48 pct. Only the Biotechs were down, and only by a wee bit.

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The Cara Global 100 Stockwatch

This data is supplied every day by the folks at KNOBIAS, Inc.

Here are the previous session’s Cara 100 gainers. Interactive charts of the top 12 Watch List gainers.

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Here are the previous session’s Cara 100 losers. Interactive charts of the top 12 Watch List losers.

Here are the Cara 100 stocks that hit 52-week intra-day highs or lows in the previous session.

China and Brazil, and to a lesser extent Russia, led the Cara 100 leader board yesterday. There is a pattern here. When markets rally they seem to be transferring assets from the US to the BRIC emerging markets.

Do you think this money flow is foretelling a situation where the US starts a Bear market first? That could be.

Hovnanian (HOV) is down to $15.63 (last), which was the intra-day low (-3.58 pct on the day).

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Here are the Cara 100 stocks that had extreme volume changes in the previous session. This is a good list to watch anytime markets start trending in the extreme. It pays to watch the price and volume extremes. That btw is called Money Flow.

Despite a trading session that ended at 1:00pm ET, there was Teck-Cominco (TCK) that traded +21 pct over and above its average daily volume. This is because Teck made a $4.1 billion take-over bid for Aur Resources. Traders recognized the share dilution required for this transaction and traded TCK down -3.1 pct on the day.

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In Focus

UBS Securities upgraded Canada’s Royal Bank (RY) from Neutral to Buy.

Other Recent Wall Street upgrades

Other Recent Wall Street downgrades

There are various sources for up/down grades by broker-dealers. One is at Briefing.com. Traders ought to check everyday for ratings changes. That website is updated later in the morning.

The majority of the US House-Builders were downgraded on Monday by Citigroup: HOV+TOL+RYL+PHM+LEN+KBH+DHI. As I say, that will help wash out the group, and appeal to the cycle bottom-feeders.

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Here is the current Relative Strength Index (RSI) analysis of the Cara 100 company stocks

Here, from “Chris”, are the interactive charts of up to a dozen stocks with (unsmoothed) RSI-7 above 70 and below 30:

RSI > 70 (12 of 20)

RSI < 30 (4)

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Here, from “David” in upper New York State, are the stocks in the Cara 100 trading with the highest and lowest RSI-7 sorted by (i) daily and (ii) monthly values, for the previous session.

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Global Equity Markets Review

Here’s the closing data of the Asia-Pacific equity markets..

It may be US Independence Day, but other markets are open. Shanghai China took a big loss, but Seoul South Korea was strong.

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Here’s the chart of the Japanese Nikkei 225..

The Nikkei Dow ended flat again today, but is still near a cycle high.

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Here’s the chart of the Shanghai equity market..

Shanghai lost -83.6 points (-2.14 pct) today, selling hard into the close.

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Here’s the chart of the Bombay India Sensex 30 index..

The Indian equity market (BSE 30) was up (again) +73.7 points (+0.5 pct). It has been a solid four days. Today, in act, there was a new record high close, and new intra-day high.

Ghandi would be proud.

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Here’s the latest session data for the bourses of Europe.

Stocks are strong in Europe again today (as of 7:46 am ET). You might say the traders continue to like what they see in NY, and in the Humungous Private Equity Corp take-over and IPO business.

The game of musical chairs can obviously continue as long as the US Admin, Fed, and HB&B are still on a conference call courtesy of Hank Paulson.

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Gold & Precious Metals Review

Spot gold at 7:49am ET today is 654.2, down from yesterday’s 656.8 courtesy of a mid-morning smack-down yesterday.

That’s ok; “I like what I see.”

Here is the Recent Spot Gold chart.

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At 7:48am ET this morning, the Spot silver (AG) was 12.59, down from 12.60 yesterday morning.

Traders took the mid-morning smack-down yesterday in full stride. Yes, “I like what I see”. I continue to believe and say, “I think this (recent pull-back) (was) another buying opportunity.”

Here is the Recent Spot Silver chart.

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This morning at 7:43am ET, Spot platinum is up +1 to 1281 in thin trading.

I continue to write, “I remain positive despite all the screaming around me.”

Here is the Recent Spot Platinum chart.

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Palladium (at 7:51am ET) is down -1 to 364, from yesterday.

I still think “We need to see a 372 floor before PD will lift”…. And “I continue to believe we will be looking at 380+ in the next week or two.”

Here is the Recent Spot Palladium chart.

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Precious Metals Stocks Review

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

Interactive Chart of Daily U.S. Goldminers Index:

Interactive Chart of Daily and Weekly US Goldminers Index plus important PDF chart:

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The recent technical break-down in the Goldminers turned out to be a Bear Trap. The market has been deliberate in its move to shake out the weak hands.

I continue to believe that once the 143-144 level for $XAU is taken out, the goldminer prices will rally hard over the Summer.

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

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

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

Interactive Chart of XGD Daily data:

Interactive Chart of XGD Weekly data:

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

ABX NEM GG GFI KGC AU HMY AUY BVN
Interactive Daily data
Interactive Weekly data

MDG LIHRY AEM BGO IAG EGO RGLD GOLD CDE GRS
Interactive Daily data
Interactive Weekly data

CBJ SSRI SIL NG KRY UXG GRZ TSE_HRG TSE_GUY TSE_AGI
Interactive Daily data
Interactive Weekly data

NXG GSS MNG DROOY MFN RNO RANGY MRB CLG
Interactive Daily data
Interactive Weekly data

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Here are the key Silver miners and the SLV ETF:

SLV SIL CDE HL PAAS SSRI SLW MGN

Interactive Daily data
Interactive Weekly data

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The South African goldminer labor issue may be ending. As I noted yesterday morning, “The miners have been offered a +6 pct wage hike. That ought to help Gold Fields (GFI)”.

Later in the session yesterday, GFI lost -0.20 (-1.2 pct), but volume was low. I like the stock at these prices, and, as you know, the company is one of the Cara Global Best 100.

Watch the Toronto Exchange today to see if the Goldminers make any kind of move. I’ll come back in the afternoon with a screenshot of my TSX gold monitor.

Yesterday, I wrote, “I think there is at least +25 pct gain left in Western Goldfields (WGDF, TSX:WGI) this summer”. Here is the chart. I know many of you are happy campers.

WGDF gained +5.7 pct over the past week, including +1.2 pct yesterday. The stock (TSX:WGI) will trade today. You can follow it as WGI.TO.

Community Chat

As I wrote yesterday, I am working on developing an e-store for books, reports, conferences, travel and so forth. The technology is now in place.

I need to put the business processes in place, and that will require writing introductions, legalese and all. One of you has volunteered to help me.

The e-store will actually be on the TraderWizard.com site, keeping the BillCara.com site free.

And yesterday, I cleared off the Kontera in-text links. It was an experiment that I brought to a conclusion quicker than expected after some of you wrote to say you would pay me to take them off the pages. I had been looking for a reaction one way or the other, and you spoke up.

Today, I will have a head shot photo taken for the website and the book jacket. You spoke up there too.

On Saturday, I depart for Bahamas. Thank you for speaking up there too. I will do whatever it takes to please you. (LOL)

Enjoy your independence today. Soon, we will have to get to work on planning our freedom, if you know what I mean.

Yes, I missed out (close though) on Freedom 50. But, I hope that I can help you achieve that goal, if that applies.

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ADDENDUM: Toronto Stock Exchange trading of the Gold/Silver miners on July 4

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