Besides it was such a good week for the Bulls all over the world that you don't need me to tell you that. All I can add perhaps is to opine that it will be clear sailing ahead for equities this summer.

This is the time, following a strong market advance, to raise stops and to write covered calls. It will also be a good time to take advantage of the usual sector rotation moves by taking profits (or part profits at least) as price targets are met.

I would avoid bonds and interest-sensitive equities, preferring the commodity price sensitives (energy and basic materials, particularly precious metals), industrials (the US exporters and non-US importers), and technology.

On a relative basis, it is actually the best time to buy the stocks of the high quality (of those still fairly-priced) microcap manufacturing, service and R&D companies and the speculative resource exploration and development companies. Trades could be funded via sales of large caps that may presently be enjoying long-term cycle-ending spike tops or from those that appear to have finished their 2002-2007 Bull phase and are headed south.

As the global economy appears to continue its rapid growth based on expansion of the BRIC economies (Brazil, Russia, India and China), and the US economy staves off recession due to continued growth of the money supply, the conditions are now right for a final blow-off and commencement of a secular Bear, possibly September-October.

The driver for change from Bull to Bear will likely be interest rates, which must go up to combat the rise in commodity prices. As the USD falls, inflation is being imported into the US. So the Dollar must be supported. The Fed has been taking action because the yield on three-month T-Bills has rallied in three weeks from +4.56 pct to +4.82 pct. As the cost of money increases, there will be some more credit bubbles popping.

West Texas Intermediate Crude is up to $74.13 (well above the 65 comfort level), the $CRB is now up to 325.09 (above the 320 comfort level), and gold/silver bullion and share prices are rising, looking like a break-out is imminent. The Treasury must continue to raise $12 billion a month for Iraq and Afghanistan in addition to needing funds to meet the rest of the deficit spending by Congress. If the Fed doesn’t take action now, we’ll soon see $80 oil and $750 gold.

I’m not so sure the Fed and Treasury are not already cooked. The more bonds and notes they are forced to issue to meet the needs of government, there is a crowding out in the marketplace, and rates have to rise. If, as and when rates lift beyond a certain level, however, there will be over-leveraged funds and small banks that will fail.

Clearly there is a crisis of confidence in the USD. It was just mid-June (less than 4 weeks ago) when the $USD traded at 83.27, whereas the price today is 80.58. Even the 200-day (40-week) Moving average of the $USD is 83.77. So the mighty Dollar that CNBC commentator Larry Kudlow prattles on about – the greatest story never told (LOL) – is soon to be a 70-cent funny money dollar.

I call it the Dollar comprised of twenty wooden nickels.

Even the selling of gold by the European central banks, which funds their purchase of $USD (intended to relieve the stress on the Euro and Pound, which are setting record highs), is not enough. The investment demand for gold is not being matched in the aggregate by supply from the miners or other commercial sources or the central bank selling, so the precious metals are becoming more precious by the week.

Yes, the monetary conditions are ripe for higher equity prices, but don’t miss note of the fact that commodity prices are rising faster. This week, for instance, traders were agog over the S&P 500 lifting +1.52 pct in a single week, but oil (1.81 pct), gold (+1.91 pct), silver (+2.77 pct) and gold stocks ($XAU +4.19 pct) far out-performed.

Moreover, in the last major rally in the equity market five weeks ago, when the S&P 500 jumped +2.07 pct, commodities ($CRB +3.83 pct), oil (+5.84 pct), gold (just +0.74 pct), silver (+1.52 pct) and gold stocks ($XAU +3.97 pct) fared better in total.

Two weeks before that there was another rally in the S&P 500 of major proportions (+2.22 pct), but oil (+1.67 pct on that Friday), gold (+2.34 pct), silver (+5.69 pct) and gold stocks ($XAU +4.87 pct) did much better.

The point I am making here is that, like other things, this equity market is being pulled up by inflation, but the true inflation beneficiaries are beating the paper-backed equities and currencies hands-down.

As you can see how I categorized the sectors into three parts, the commodity price beneficiaries are winning, and the interest-sensitive and economy-sensitive beneficiaries are, on a relative basis, losing.

If you don’t believe that, look at the worst two sectors this week: consumer cyclicals (where XLY is the major ETF) [economy] and Financials (where XLF is the major ETF) [interest-sensitive].

And where the seams are coming apart, and which is the area of interest to seek the driver that will take down this roaring Bull, look at the Financials over the past month. They are the worst of the ten sectors of the market, with XLF being down -2.2 pct. Ugly. Yet, most traders think this market is on a screaming run higher.

Well, it is, but not without problems. It’s my job to look for the problems.

What the US Admin (including the Treasury) and the Fed are hoping for here is (i) that interest rates do not rise to the point of having knock-out power, and (ii) economic growth – surely the authorities have paved the road with enough money – that can right the foundering ship (inflation, ie, prices, rising faster than real wealth).

But, war costs a lot of money, and always causes inflation to pick up. And the US economy is not doing well, either on trend or compared to the long-term norm.

So what do we call the period of time that the economy is stagnating when at the same time it is inflating? We call that stag-flation. And as you know from reading this blog, stagflation is a killer of financial assets (like stocks, bonds and paper money). Obviously, stagflation has not held back the stock prices, so how do I see this scenario playing out?

I think we are quickly reaching – over the next eight to twelve weeks – the cycle peak for stocks. We, some time ago, reached the peak for bonds. What is left is for commodity prices to spike to their final cycle high. That will complete the cycle.

As you know, I thought this scenario was going to play out early this year, but that Paulson fellow is awfully influential. He happens to personally know quite a few of the major private equity players who he has smooth-talked into taking on huge debt/risk in order to pull equity prices higher by way of the corporate acquisitions game. As well, he knows most of the senior corporate CEOs and Chairmen, who he has managed to talk into issuing higher dividends and making open market purchases of their common shares, which in the aggregate have exceeded free cash flow, requiring taking on more debt.

To accomplish these actions, Henry Paulson has (i) borrowed resources from the future to make today as good as it can be, and (ii) played the credit swap game to a point where it is snowballing out of control, far bigger than anybody imagined it could be, just five years ago.

Regrettably, there is a flip side to Paulson’s Pride. The ridiculously low interest rates late in the Greenspan regime, combined with short-term and adjustable rate financing, now will be rolled over into new debt that will cost much more to service. That cost will be out of the reach of many players who failed to understand the concept called Reversion to the Mean. Rising interest rates will kill (and have been killing) many home-owners, small banks, and fund managers who are loaded up with debt.

Without the Rat Catcher Bill Cara in charge, it’s now time to pay the Piper.

Traders can still protect their assets by eliminating debt, buying puts, writing calls or just plain selling the stocks, and as an absolute minimum raising their protective stops across the equity portfolio.

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Global Market Summary

International Equities: Strong.

U.S. Equities : The broad US market indexes were very strong this week.

Dow 30 : The DJIA is at a new record.

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International Economics Review

Econoday Weekly International Report

US Economic Calendar for next week

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US Equity Markets Review

DJIA (interactive) chart

The Dow Jones Industrial Average (DJIA) closed the week at 13907, up +500 points from 13408 just two (short) weeks ago.

There is a lot of technical support in the 12750-12800 area (May-June-07 trading). There is even more support down at about the 12050 level of March-07.

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NASDAQ Composite (interactive) chart

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Sector ETF Summary

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

Eight of the ten sector ETF’s I follow here were up this week – and one down (XLY) with one flat (XLF).

Table 1: Cara ETF List is sorted by price performance Week over Week (W/W), i.e. 1W%N.

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	73.95	0.72	0.98%	3.37%	7.56%	5.48%	30.70%	17.29%	33.39%	29.40%
XLB	42.97	0.52	1.22%	3.29%	6.76%	5.32%	24.15%	10.52%	21.97%	39.83%
SMH	40.19	-0.03	-0.07%	2.45%	4.83%	7.32%	19.72%	16.59%	14.53%	31.04%
XLI	40.73	0.29	0.72%	2.34%	4.70%	3.61%	15.61%	12.95%	14.47%	25.48%
XLU	40.75	0.60	1.49%	2.23%	3.77%	1.42%	10.67%	0.07%	13.60%	24.77%
XLP	27.63	0.12	0.44%	1.28%	2.26%	0.11%	5.14%	1.99%	4.34%	13.99%
IYH	71.10	-0.13	-0.18%	0.94%	1.76%	0.14%	6.98%	1.46%	4.50%	18.13%
IYZ	34.82	0.04	0.12%	0.40%	3.02%	2.05%	17.40%	9.95%	17.91%	41.31%
XLF	36.68	0.14	0.38%	0.00%	0.82%	-2.24%	-0.65%	2.75%	-0.86%	15.53%
XLY	40.05	0.20	0.50%	-0.30%	1.96%	0.88%	3.97%	2.96%	2.01%	25.94%

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.

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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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Individual Sector ETF Review

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

Top gun this week was Energy, where the XLE jumped +3.37 pct W/W to close at 73.95.

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

XLE Monthly data:

XLE Weekly data:

XLE Daily 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
CVX	93.33	0.03	0.03%	6.44%	10.87%	13.36%	31.51%	21.19%	32.67%	43.72%
PBR	69.10	0.76	1.11%	5.08%	14.06%	16.78%	38.67%	30.48%	46.40%	58.49%
XOM	90.33	0.71	0.79%	4.48%	8.05%	6.56%	21.89%	16.69%	24.32%	40.99%
SU	95.21	1.70	1.82%	4.25%	7.65%	5.64%	28.82%	15.67%	30.21%	20.84%
TOT	86.98	0.56	0.65%	3.18%	9.11%	12.12%	22.56%	19.58%	28.10%	33.69%
STO	33.40	-0.10	-0.30%	2.83%	10.56%	18.52%	30.01%	18.52%	36.61%	12.04%
ECA	64.11	0.50	0.79%	2.54%	5.18%	-1.28%	41.40%	18.61%	38.92%	27.20%
IMO	48.76	0.37	0.76%	2.29%	5.68%	2.48%	36.74%	23.91%	48.30%	31.64%
CEO	120.18	0.29	0.24%	0.24%	6.30%	11.73%	27.48%	35.34%	37.76%	49.38%

Big Oil -- ChevronTexaco (CVX +6.4 pct) and ExxonMobil (XOM +4.5 pct) – was up BIG. PetroBrasil (PBR +5.1 pct) was also very strong.

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Integrated Oil & Gas - Canada

Oil & Gas Exploration & Production -Canada

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

The second best sector performer this week was Basic Material, where XLB jumped +3.29 pct.

Some of the gains were spectacular: the big one was Alcoa (AA +13.7 pct on the sheer relief to shareholders the company didn’t dilute itself or get further indebted by about $40 billion to take over Alcan). Posco Steel of Korea (PKX +12.8 pct) had a spectacular week as well. CVRD of Brazil (RIO +8.1), Canada’s Teck-Cominco (TCK +10.7 pct) and South Africa’s Gold Fields (GFI +6.5 pct W/W) were extraordinarily strong.

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

XLB Monthly data:

XLB Weekly data:

XLB Daily 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
AA	47.35	2.06	4.55%	13.66%	20.48%	15.04%	61.44%	34.82%	53.78%	52.79%
PKX	149.95	7.97	5.61%	12.76%	26.60%	17.42%	88.78%	46.38%	85.63%	149.29%
TCK	49.65	0.07	0.14%	10.73%	17.07%	8.36%	-28.30%	-33.45%	-29.61%	-17.29%
RIO	51.94	-0.35	-0.67%	8.14%	18.02%	13.48%	80.22%	25.92%	74.88%	132.08%
NUE	63.77	0.60	0.95%	4.54%	9.59%	1.92%	17.01%	-4.52%	13.27%	28.10%
BHP	67.96	-0.66	-0.96%	4.11%	14.70%	17.78%	74.84%	34.81%	71.96%	58.05%
MT	67.19	-0.70	-1.03%	3.66%	7.25%	4.11%	64.68%	23.60%	65.66%	113.30%
GGB	27.55	-0.05	-0.18%	1.62%	7.53%	12.45%	67.78%	40.92%	75.81%	90.66%
TS	51.74	-1.31	-2.47%	1.45%	5.66%	7.43%	6.64%	6.70%	2.76%	38.19%
RTP	304.14	-13.57	-4.27%	-5.61%	0.37%	0.46%	49.02%	23.12%	47.33%	49.16%

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

If mining and oil is doing well, then so too is the company that makes most of the heavy equipment Caterpillar (CAT +8.0 pct W/W). Fedex (FDX) was lifted higher (+5.8 pct), I suppose because the customers have agreed to pay the fuel surcharges. (LOL)

The falling USD has surely helped these large industrial exporters. When the $USD reaches zero, foreigners get to receive things like Boeing planes, United Technologies elevators, GE turbines and Honeywell control systems FREE. The buyers will just have to pay for delivery, which is going to be costly.

These American workers will have jobs however, but they won’t be able to pay the required $100 per gallon of gas, and they’ll be stranded in their own country, unable to pay the airline fuel surcharges or the high cost travel abroad.

Not all will be lost; the wait staff at American hotels and restaurants will love those high-tipping foreigners. Serve the world with a smile.

All those coins and one dollar bills will be taken out of circulation, and the other paper money will all have extra zero’s on the face. Like the $100 bill will become the ten.

For a while you might even think you have more money. (LOL)

No, inflation is not a good thing.

We’ve already gone from a 25 cent cup of coffee to $2.50. Next stop $25.00. Same coffee. Same smiling faces behind the counter. And with a cookie on the side, you can donate your change from a ten spot right into the clear plastic jar for donations, beside the cash register.

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

XLI Monthly data:

XLI Weekly data:

XLI Daily 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	85.13	1.04	1.24%	8.02%	7.64%	5.45%	39.19%	27.46%	42.50%	22.14%
FDX	117.25	2.83	2.47%	5.78%	4.34%	5.84%	6.81%	8.66%	7.71%	6.06%
ABB	24.82	-0.20	-0.80%	4.33%	10.51%	12.26%	39.28%	37.28%	40.07%	106.32%
UTX	75.00	1.01	1.37%	3.31%	5.50%	5.22%	19.41%	15.30%	16.42%	22.09%
BA	101.88	1.10	1.09%	3.03%	7.06%	2.94%	14.25%	11.92%	15.60%	28.01%
GE	39.50	0.50	1.28%	2.65%	3.62%	4.50%	4.03%	11.64%	4.25%	20.91%
MMM	90.22	0.29	0.32%	2.39%	3.88%	3.20%	15.28%	17.60%	13.68%	25.95%
ERJ	50.06	-1.12	-2.19%	2.14%	3.49%	-0.79%	22.76%	6.42%	26.96%	46.37%
HON	60.14	-0.30	-0.50%	1.79%	6.67%	3.26%	33.35%	27.88%	32.00%	58.30%

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

Consumer discretionary spending may go the way of the horse and buggy if prices keep jumping. Thank goodness there are employers and clients who don’t mind paying +10 pct higher wages and fees this year. Those are the understanding ones who also don’t believe the govt crapola that inflation is rising by +2 pct a year.

This sector’s ETF is the XLY, which was the only one of the ten that dropped in price this week. When it comes to consumers, everything is on sale. All clothing in this store reduced by -50 pct; XLY down by -0.30 pct over last week, now on sale at $40.05 – priced at $40.33 on June 2.

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

XLY Monthly data:

XLY Weekly data:

XLY Daily 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	75.85	0.39	0.52%	4.55%	4.02%	-0.22%	-2.83%	-6.61%	-3.83%	17.09%
EBAY	33.95	-0.28	-0.82%	1.68%	6.23%	7.40%	12.53%	-2.39%	13.17%	27.73%
BC	32.98	0.17	0.52%	0.61%	0.09%	-2.60%	3.32%	7.88%	8.06%	16.74%
TM	125.98	-0.32	-0.25%	-0.20%	1.05%	1.83%	-6.89%	3.67%	-3.75%	27.12%
DIS	34.37	0.12	0.35%	-0.35%	1.54%	1.72%	0.50%	-1.01%	-2.39%	19.76%
CCL	47.73	0.87	1.86%	-0.87%	-1.67%	-4.12%	-6.32%	5.48%	-6.25%	20.41%
NKE	59.01	-0.45	-0.76%	-1.11%	1.24%	9.93%	20.85%	9.99%	18.30%	49.85%
SBUX	26.07	0.11	0.42%	-1.81%	-1.44%	-5.58%	-26.04%	-15.25%	-27.38%	-23.37%
WHR	111.31	0.22	0.20%	-2.29%	-1.10%	-0.78%	31.48%	25.39%	29.73%	45.41%

JC Penny (JCP) managed a rally of +4.6 pct.

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

Consumer Staples (XLP +1.28 pct W/W) closed Friday at 27.63.

In the case of the haves, Whole Food Markets (WFMI) zoomed +6.4 pct. Seems like many of you are perturbed. Try buying food here at City Markets, which is like Safeway. No income tax has its advantages, but you pay for it at City Markets. From one pocket or another.

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

XLP Monthly data:

XLP Weekly data:

XLP Daily 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
WFMI	40.50	1.50	3.85%	6.41%	5.22%	3.05%	-10.95%	-8.66%	-11.42%	-32.29%
DEO	85.73	0.81	0.95%	3.14%	3.04%	0.85%	7.80%	4.28%	8.11%	27.54%
ABV	74.98	0.74	1.00%	2.43%	8.07%	2.64%	52.71%	29.41%	48.74%	91.72%
PG	62.66	-0.27	-0.43%	1.92%	2.12%	0.38%	-2.91%	-1.14%	-3.60%	10.82%
WAG	45.20	0.10	0.22%	1.78%	3.84%	3.08%	-1.89%	-1.57%	-2.16%	-2.63%
WMT	49.15	0.32	0.66%	1.57%	1.95%	-0.26%	3.36%	3.67%	2.44%	11.30%
KO	53.11	0.48	0.91%	0.97%	0.91%	3.51%	9.32%	6.48%	9.39%	23.23%
PEP	66.85	-0.09	-0.13%	0.95%	2.45%	-0.06%	6.58%	3.80%	3.32%	7.70%
MO	71.70	-0.37	-0.51%	0.14%	2.55%	1.75%	10.44%	3.08%	8.05%	24.54%
BUD	50.82	0.36	0.71%	-1.57%	-1.78%	-3.86%	3.25%	-2.53%	0.95%	11.79%

Everybody’s drinking booze though. Diageo (DEO) was up +3.1 pct W/W.

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

The healthcare ETF I use (IYH) was up +0.94 pct to 71.10.

Amgen (AMGN) hit higher prices (+3.9 pct).

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

IYH Monthly data:

IYH Weekly data:

IYH Daily 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
AMGN	56.93	0.98	1.75%	3.85%	2.93%	-2.23%	-16.77%	-3.56%	-22.30%	-13.23%
JNJ	63.43	0.07	0.11%	2.09%	3.14%	1.57%	-4.47%	1.73%	-4.82%	5.24%
BMY	32.06	0.04	0.12%	1.62%	1.36%	7.48%	21.53%	13.21%	22.13%	29.38%
GSK	52.54	-0.10	-0.19%	1.43%	0.17%	0.77%	-2.36%	-9.57%	-2.25%	-3.51%
DNA	75.50	0.24	0.32%	0.53%	-0.17%	-0.98%	-7.70%	-7.17%	-13.05%	-6.50%
PFE	25.91	-0.07	-0.27%	-0.04%	1.09%	-1.82%	-1.45%	-2.85%	-2.74%	13.29%
UNH	52.98	-0.11	-0.21%	-0.08%	1.69%	0.06%	0.78%	0.06%	-3.85%	10.35%
AET	50.91	-0.82	-1.59%	-0.33%	2.13%	0.63%	18.73%	14.10%	20.21%	32.23%
BMET	45.62	-0.28	-0.61%	-0.35%	0.04%	0.15%	10.01%	6.14%	9.32%	47.35%
NVS	54.94	-0.84	-1.51%	-0.70%	-1.84%	-0.04%	-5.50%	-2.54%	-5.59%	-0.40%

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

The two losers in my monitor this week are the two closest friends of Paulson – Goldman Sachs (GS -0.7 pct) and Lehman Bros (LEH -1.7 pct).

XLF, which is the main ETF for the Financial sector is the biggest loser of the ten over the past four weeks – down -2.2 pct. Either the financials get their act in gear or the equity market is not going much higher from here.

XLF was flat (0.00 pct) this week, closing at 36.68.

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

XLF Monthly data:

XLF Weekly data:

XLF Daily 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
JPM	50.05	0.52	1.05%	2.21%	2.23%	-0.54%	4.12%	1.96%	4.29%	20.92%
MER	86.54	1.02	1.19%	2.20%	0.60%	-3.98%	-7.55%	0.30%	-10.80%	26.34%
C	52.52	-0.32	-0.61%	1.59%	1.37%	-2.14%	-4.94%	1.78%	-3.42%	9.71%
CS	74.00	-0.13	-0.18%	1.51%	4.85%	0.89%	5.55%	0.65%	8.31%	0.00%
UBS	61.49	0.51	0.84%	0.62%	3.36%	-0.13%	0.16%	-0.05%	0.62%	20.57%
DB	148.42	1.51	1.03%	0.26%	3.34%	1.23%	9.66%	4.23%	10.11%	38.32%
HBC	93.15	-0.65	-0.69%	0.26%	1.14%	0.96%	0.19%	1.47%	3.09%	6.96%
MS	73.26	0.86	1.19%	0.23%	-13.69%	-17.96%	-10.24%	-8.41%	-11.59%	19.18%
GS	222.18	1.89	0.86%	-0.65%	1.47%	-1.58%	10.69%	7.59%	3.83%	55.86%
LEH	73.50	0.26	0.35%	-1.74%	-3.19%	-6.73%	-6.52%	1.77%	-11.17%	19.98%

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

The third best sector ETF performer this week was the Semi-conductor SMH, up +2.45 pct to 40.19.

Big winner was SanDisk, maker of my mp3 (which is a constant in my life now that I spend all my time around poolside). The music was really playing as SNDK jumped +11.3.

The 800-pound gorilla in the chip business – the one I spent a lot of time a year ago telling everybody was a prominent Cara 100 company – Intel (INTC) was in the chips this week, up +5.2 pct.

And the great facilitator of the Internet, (Cara 100) Cisco (CSCO) was up +5.0 pct. Between Intel and Cisco, that’s a lot of weight in the indexes, particularly Nasdaq.

Incredibly fast growing (Cara 100) Cognizant Technology (CTSH) was up +9.2 pct.

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

SMH Monthly data:

SMH Weekly data:

SMH Daily 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	54.76	0.33	0.61%	11.30%	12.58%	21.74%	31.26%	26.32%	24.37%	32.49%
CTSH	86.18	-0.26	-0.30%	9.24%	12.51%	8.95%	10.83%	-1.37%	5.83%	35.38%
INTC	25.97	-0.03	-0.12%	5.23%	8.57%	11.80%	27.62%	26.93%	17.35%	46.81%
CSCO	29.89	0.09	0.30%	4.99%	7.32%	11.41%	7.75%	12.03%	3.32%	65.87%
QCOM	45.35	0.10	0.22%	4.06%	4.35%	6.41%	21.06%	6.58%	14.46%	24.04%
ADSK	47.00	0.10	0.21%	3.98%	-1.61%	3.78%	15.88%	19.78%	7.43%	53.39%
SAP	52.14	-0.21	-0.40%	3.17%	2.22%	6.89%	-1.99%	8.60%	4.24%	11.34%
ADBE	41.18	-0.37	-0.89%	0.39%	1.88%	-6.32%	3.16%	-1.10%	3.05%	46.55%
ORCL	20.40	-0.10	-0.49%	0.00%	2.77%	3.87%	16.50%	9.50%	16.57%	44.68%
INFY	51.91	-0.09	-0.17%	-1.29%	0.93%	-2.44%	-7.00%	-5.55%	-10.64%	31.75%

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Sector 50 (telecom: IYZ, VOX and IXP)

The IYZ telecommunications ETF was up a bit, +0.40 pct W/W to close Friday at 34.82.

AT&T (T) was down -0.64 pct W/W, but Verizon (VZ) lifted +0.51 pct.

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

IYZ Monthly data:

IYZ Weekly data:

IYZ Daily data:

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

XLU, the Utilities ETF, enjoyed a sharp gain on the week, up +2.23 pct, closing at 40.75.

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

XLU Monthly data:

XLU Weekly data:

XLU Daily data:

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Bonds & Yields Review

Bond prices were up sharply early in the week (in a recovery move), then came down sharply, gaining a bit on the (quiet) week. The risk continues to be long the bonds, and short the commodities (and related), I believe.

Here is the $USB 30-year Treasury Bond chart.

Interest rates and bond yields.

Weekly data charts:

Interactive Daily data charts:

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Table 10: Bond Yields

US Treasury Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
3 Month	4.82	4.81	4.79	4.51
6 Month	4.84	4.84	4.80	4.72
2 Year	4.92	4.94	4.98	5.08
3 Year	4.94	4.95	5.01	5.11
5 Year	5.00	5.03	5.09	5.14
10 Year	5.10	5.13	5.18	5.20
30 Year	5.18	5.22	5.27	5.28

Municipal Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
2yr AA	3.77	3.74	3.78	3.82
2yr AAA	3.76	3.70	3.75	3.75
2yr A	3.71	3.72	3.76	3.80
5yr AAA	3.86	3.83	3.84	3.95
5yr AA	3.91	3.91	3.92	3.95
5yr A	3.98	3.99	3.96	2.30
10yr AAA	4.07	4.04	4.06	4.11
10yr AA	4.11	4.08	4.07	4.14
10yr A	4.32	4.29	4.29	4.38
20yr AAA	4.62	4.61	4.67	4.74
20yr AA	4.54	4.52	4.54	4.66
20yr A	4.64	4.64	4.68	4.82

Corporate Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
2yr AA	5.34	5.35	5.38	5.43
2yr A	5.40	5.41	5.45	5.51
5yr AAA	5.55	5.56	5.63	5.67
5yr AA	5.66	5.69	5.72	5.72
5yr A	5.71	5.74	5.77	5.79
10yr AAA	5.95	5.91	5.97	5.97
10yr AA	6.03	6.05	6.11	6.03
10yr A	6.10	6.10	6.11	6.06
20yr AAA	6.32	6.35	6.34	6.33
20yr AA	6.30	6.33	6.36	6.20
20yr A	6.46	6.49	6.48	6.47

The 30-year US Treasury Bond is yielding 5.18 pct, while the 10, 5 and 2-year paper is yielding 5.10, 5.00 and 4.92 pct respectively.

When the 10-year rises above 5.25 pct, the seriousness of the condition of the US credit markets shows its face. This is borderline ugly.

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Interactive Chart of Interest rates and bond yields.

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US Bond Funds -- Interactive Monthly Data Charts

SHY Monthly data series chart:

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IEF Monthly data series chart:

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TLT Monthly data series chart:

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AGG Monthly data series chart:

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LQD Monthly data series chart:

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TIP Monthly data series chart:

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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:

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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:

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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
TLT	84.39	0.36	0.43%	1.09%	0.11%	1.53%	-5.25%	-3.13%	-4.15%	-0.72%
FRE	61.36	0.12	0.20%	0.84%	0.94%	-5.95%	-9.62%	2.25%	-5.99%	8.52%
IEF	80.53	0.18	0.22%	0.64%	-0.17%	0.83%	-2.60%	-2.20%	-2.06%	-0.04%
TIP	98.29	0.15	0.15%	0.49%	-0.10%	0.55%	-0.95%	-1.66%	0.25%	-1.23%
AGG	97.90	0.12	0.12%	0.40%	-0.28%	0.37%	-2.01%	-1.70%	-1.78%	0.15%
SHY	79.92	0.04	0.05%	0.20%	-0.10%	0.28%	-0.15%	-0.19%	0.00%	0.43%
FNM	65.73	-0.63	-0.95%	-1.14%	0.31%	-3.99%	9.81%	21.86%	12.65%	37.60%
CFC	36.26	-0.42	-1.15%	-2.89%	-0.11%	-4.07%	-13.89%	7.79%	-15.67%	-4.43%

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Freddie Mac (FRE +0.84 pct W/W) and Fannie Mae (FNM -1.14 pct) did not do much this week, but Countrywide Financial (CFC -2.89 pct) dropped a fair bit.

This industry is going to take time to solve its issues.

Consumer Finance -USA -- Interactive Weekly Data Charts

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Consumer Finance -USA -- Interactive Daily Data Charts

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Commodities Review

$CRB Index

Open Futures Contracts

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The Commodities index $CRB gained +1.32 pct W/W to close Friday at 325.09. The US authorities must be sweating nickels.

A week ago, $CRB closed at 320.86, which was a powerful move on the week.

Two weeks ago, I wrote, “I still think the stage is set for rising commodity prices, and a weaker dollar that will be blamed on (who else!) China. End of story.”

I’m not so sure the US authorities have been blaming China (except for maybe bad shrimp), but there is a rally underway in commodity prices that is tied to the falling $USD.

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Interactive Chart of Weekly CRB Commodities Index:

Interactive Chart of Daily CRB Commodities Index:

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Oil Review

Here is the e-miNY Aug-07 Crude Oil chart.

The $WTIC price is now $74.13, up +1.81 pct W/W.

A week ago I wrote it was “$72.81, up +3.0 pct from last week, which is up from 70.68 the week before that, and from 69.14, up from 68.54, which was up from 64.76 a week before that. Do you see a trend here? And did you notice that Talking Heads have stopped worrying about $70 oil as being an economy killer?”

The $WTIC 50-Day Moving Average (from StockCharts) is now 67.14 and the 200-Day MA is 62.16. Hence the current price (74.13) is well above technical support.

Several weeks ago, I alerted you to how $WTIC is “possibly pulling up the trading range from 55-65 to 65-75.”

Interactive Chart of Weekly Crude Oil:

Interactive Chart of Daily Crude Oil:

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Gold & Precious Metals Review

This week, $GOLD gained +12.50 (+1.91 pct W/W) closing at 667.30.

A week ago I wrote, “$GOLD was up +3.90/oz to close at 654.80. A week ago it lost -6.10/oz to close at 650.90. On my June 9 WIR, I reported $GOLD was 650.30, so we’re making headway.”

Yes, much headway was made this week too.

The 50-day MA is now 663.47 and the 200-day MA is 646.89, so the (i) the important 200-day MA technical support held, and (ii) the current price (667.30) is now fully bullish. Yes, as I said it might,$GOLD has broken to the upside.

“I still believe that this Summer the 698.00 cycle high on the Weekly data is the next to go, and after that the 730.40 cycle high of May 2006 will be next.”

“Like a coiled spring”, I say, “Watch it snap one day”.

Soon. The technical charts look great.

Spot gold chart for the week

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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.

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After $SILVER had a recovery week a week ago, this was a rally week, moving +0.35/oz to 13.11, up from 12.47 just two weeks ago.

Here is what I wrote two weeks ago:

This week, $SILVER had a terrible week, dropping -0.55/0z (-4.2 pct) to close at 12.47. And now the skeptics are pointing to a Point & Figure Chart break-down! Well I do admit that the P&F can be a meaningful indicator, but today there are precious metal ETF’s (the securitization of real wealth, except this time backed by debt that can be called in a heartbeat by vested interests who want the price to plunge like a waterfall, particularly at times when technical support levels are at hand). So I am not so quick to jump off that cliff with the waterfall these days. Now I want to stop for a moment to listen to my common sense, which in this case is telling me that if inflation was a problem a week ago it probably is today. Otherwise, why would the majority of the world’s central banks be raising their rates? And what will happen when they continue to raise those rates, and the Fed (being strung up by a worsening debt crisis) cannot? Of course, the precious metals will lift. It’s just a matter of time. Sure, we have to protect our capital today, but we don’t have to be stupid about it.”

The 50-day MA for $SILVER is 13.13 and the 200-day MA at 13.10, so the current price at 13.11 is technically flat with the averages. But it is also in rally mode.

As I said two weeks ago, “We have to respect that (P&F chart break-down), but we can also have our finger poised to hit the Buy button too.”

I hope you did.

A week ago, “Savvy traders were watching the upside break-out in all the silver miners BEFORE the metal price started to move. That was a very bullish sign.”

Spot silver chart for the week

Interactive 60-minute data

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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.

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$PLAT futures gained +16.00 this week and +25.60/oz a week ago, closing at 1328.10.

The 50-day MA is 1307.20 and the 200-day MA is 1214.20, so the current 1328.10 price is short-term and long-term bullish.

For many weeks I have been writing, “As you know, I think the 1354.20 cycle high price for Platinum that was set in early May will be taken out before August. The PM Bull is still running, I believe.” Then I wrote, “Although hammered this week for silver, platinum and palladium (but not so much for gold, and not for copper at all) there is no change to my outlook. … I hope you held the fort.”

Ka-ching. And the chart looks terrific.

Spot platinum chart for the week

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.

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$PALL has been bullish since early October (290.88). It had been a little soft, but regained some color three weeks ago. Then it got hammered.

This week, $PALL gained +0.77 pct after a move of +0.22 pct a week ago, closing at 372.20. The 50-day MA is 372.23 and the 200-day MA is 349.36.

Four weekends ago I wrote, “The 50-day MA support did not hold recently. As you know, “Based on my PM group analysis, I still anticipate prices ahead, but I have to be cautious at this point.” A week ago added, “Let’s face it; it’s been a tough two weeks. As for $PALL I have written, “I think the 390.45 cycle high of April will be taken out, maybe not in June, but in July. Possibly the 410.89 cycle high of May 2006 will be surpassed in August. Yes, I continue to believe the PM Bull is running.”

At 372.20, the market is at a basing level. I still believe in my forecast (prophesy?) of a month ago.

Spot palladium chart for the week

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.

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$COPPER lost a bit (-0.04 pct W/W) to close at 359.30. the loss was -0.15 (three wooden nickels). A week ago, $PLAT had gained +14.40 (+4.17 pct W/W), and the week before that it was up +2.0 pct, so a brief rest was in order.

The 50-day MA for $COPPER is 345.58 and the 200-day MA is 316.24, so there is now both short-term and long-term technical support at this level.

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.

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Table 12: Senior gold equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
GFI	17.16	0.11	0.65%	6.45%	9.79%	6.25%	-6.38%	-13.98%	-0.92%	-25.23%
AEM	43.12	0.27	0.63%	5.79%	20.14%	19.94%	10.79%	12.38%	12.35%	26.64%
KGC	13.50	0.04	0.30%	4.90%	17.49%	5.47%	18.21%	-8.23%	12.41%	23.40%
ABX	32.03	0.15	0.47%	4.26%	11.25%	12.74%	7.38%	9.17%	9.50%	9.17%
AUY	12.33	0.08	0.65%	3.61%	10.78%	-2.99%	0.00%	-18.13%	-2.45%	23.80%
GG	26.54	-0.14	-0.52%	3.39%	12.98%	8.15%	-2.93%	0.00%	1.34%	-10.64%
BVN	41.16	0.21	0.51%	2.08%	11.67%	19.10%	49.08%	28.79%	59.66%	58.98%
MDG	29.05	-0.08	-0.27%	1.72%	5.44%	12.42%	10.50%	3.94%	7.59%	-3.58%
LIHRY	40.75	0.34	0.84%	0.02%	-10.54%	-7.20%	23.37%	0.00%	0.00%	2.77%
NEM	41.41	0.30	0.73%	-0.89%	7.09%	3.91%	-6.31%	-7.17%	-4.17%	-23.47%

A week ago I wrote, “This week, $XAU began what I believe will be a monster rally. It is a fine send-off to my travels… the Yellow Brick Road I told you I believed was coming.”

$XAU gained +4.19 pct this week (+13.3 pct over two weeks) to close at 151.08. Yessiree. The gain a week ago Friday (as I was packing) was +3.34 pct, so in the past six sessions, $XAU (the goldminers share index) has added over +7.5 pct.

“Do you know how to spell relief? G-O-L-D R-A-L-L-Y”

You read that before, somewhere. (LOL)

The 50-day MA (139.25) and 200-day MA (137.91) are now well behind us, and represent technical support.

As I say, “Let’s keep it simple. Gold production is falling. Inflation, though possibly mild, is growing constantly. Fiat money is growing much more rapidly than real (enonomic) wealth, ie, where effective rates of return are obtained based on the risk involved. Unless central banks sell their gold holdings, the price is going higher. Why make it more complicated than that?”

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 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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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:

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

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

GDX Weekly data:

GDX Daily data:

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The Toronto Exchange-listed goldminer iUnits S&P/TSX Capped Gold Index ETF trades under the ticker symbol TSE:XGD. Yes, just like GDX on the AMEX, you can trade XGD on Toronto.

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:

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Forex Review

I have been asking rhetorically, and then answering anyway, “Can anyone say 70 cent Dollars? Soon.”

The $USD closed this week at 80.58, down -1.06 pct. The 50-Day MA is now 82.10, and the 200-Day MA is 83.69, so the current price (80.58) is now quite bearish both short-term and long-term.

There is a confidence crisis with the USD. It is definitely not “the greatest story ever told.” It’s just another story. Sometimes up, sometimes down.

Presently the Dollar is falling for reasons, just like there will at some point be reasons for it to rally. It is incumbent on traders to discover those reasons and not to take the word of somebody on TV that is USD is as good as gold.

Here is the chart of the end of the week trading.

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

M3 continues to grow at an excessive rate. Like a Banana Republic, someone wrote.

I am not interested in whether it slows or quickens its pace over a week or two. The trend my friend is UP and UGLY.

Money printing is excessive because there is a war going on, and Humungous Private Equity Corp is telling HB&B who in turn tells the Fed that they can still take on more debt (and pass it along later to suckers) in order to wage their own war via M&A. The Admin certainly likes what’s going down here. They even contributed ex-T-Man John Snow to the cause. John btw is now CEO of one of the HPEC leaders, Cerberus.

It’s not that simple obviously, but the big picture is not offering blue skies for the Dollar.

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Interactive Chart of Weekly U.S. Dollar Index:

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

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The Euro (priced in USD) had a fifth straight winning week, which usually means a winner for the PM group. The latter finally kicked in two weeks ago. As I said, “You can only hold a good man down so long.”

This record-setting week, $XEU gained +1.23 pct W/W, closing Friday at 137.89. I believe 138.08 this week is the all-time high.

The $XEU 50-Day MA is 135.02, and the 200-Day MA is 131.78, so the current price (137.89) is technically very bullish, short-term and long.

As I wrote in this space four weeks ago, “I think there will be some short-term (Euro) bullishness ahead.” Two weekends ago, I added, “If I could only get the PM thing down, I’d be a happier camper. Give me time.”

Yes, I did get the job done before heading off on this voyage, and I am still (Absolut-Cranberry’s in hand) doing back-breaking work to keep things in place.

I think I’m doing an “Absolutly” fine job. (LOL)

B&B, yes, as someone has written; it’s Bahamas & Business. Sounds like a Kalik either way.

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

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

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The British Pound put on more weight, gaining +1.12 pct W/W to close at 203.35. That’s record heavy weight. Stirling, I’d say.

The $XBP 50-Day MA is 199.14, and the 200-Day MA is 195.41, so the current price (203.35) is quite over-the-top bullish.

Thank you to the Bank of England for strengthening the Pound a week back, raising its benchmark lending rate to 5.75 pct.

Weekly British Pound Index:

Daily British Pound Index:

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To show the state of the $USD, even the Japanese Yen $XJY had a winning week. This week, the Yen contracts traded up to 81.92, which was a gain of +1.05 pct W/W.

The Yen 50-Day MA is 82.04, and the 200-Day MA is 83.77, so the current price (81.92) is still bearish, but close to a break-out. Gold Bulls are cheering the Yen.

Weekly Japanese Yen Index:

Daily Japanese Yen Index:

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Weekly Canadian Dollar Index:

Daily Canadian Dollar Index:

The Canadian Dollar $CDW had another gain this week, going up +0.12 pct W/W to close at 95.42.

The $CDW 50-Day MA is 93.10, and the 200-Day MA is 88.48, so the current price (95.42) is a “red hot” one.

Oil and metals prices as well as the influx of foreign capital to buy or invest in the bountiful natural resources of the Great White North (like Alcan… $41 billion) is impressive. But, the Loonie strength is killing in-bound tourism and helping out-bound tourism -- and others ;-).

It is also negatively impacting the manufacturing base of Eastern Canada. But the Governor of the Bank of Canada is not likely to drop rates to weaken the Cdn Dollar.

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International Equity Markets Review

Here is the latest session data for the Asia-Pacific stock exchanges.

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Here is the latest chart for the Japanese Nikkei 225 index.

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Here is the latest chart for the Shanghai Composite index .

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Here is the latest chart for the India BSE 30 index .

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Here is the latest session data for the bourses of Europe.

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Here is the latest chart for the UK FTSE 100 index.

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Here is the latest session data for the exchanges of the Americas.

All equity markets are strong. I warned a couple weeks ago, “Don’t be short this market.”

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Here is the latest chart for the Brazilian Bovespa stock exchange in Sao Paulo.

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Here is the latest session data for the Toronto Stock Exchange composite index.

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Table 13: International equities perspective

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
EWZ	68.21	0.44	0.65%	5.08%	11.89%	11.78%	46.06%	29.19%	49.91%	85.55%
TRF	73.91	0.52	0.71%	4.91%	10.89%	9.09%	-16.53%	-1.00%	-2.69%	17.50%
FXI	140.99	0.50	0.36%	3.03%	8.86%	17.64%	21.13%	28.08%	33.77%	89.45%
EWC	31.70	0.27	0.86%	2.79%	6.55%	5.21%	28.34%	15.95%	28.34%	35.82%
IFN	46.86	-0.24	-0.51%	2.43%	8.88%	13.19%	3.35%	14.57%	5.09%	14.49%
QQQQ	49.90	0.34	0.69%	2.13%	5.01%	5.36%	15.40%	11.76%	10.13%	37.43%
EWU	26.40	-0.09	-0.34%	1.66%	3.86%	3.94%	12.10%	6.45%	12.48%	29.22%
IEV	121.40	-0.30	-0.25%	1.60%	4.44%	4.70%	14.96%	7.64%	15.95%	37.44%
SPY	154.85	0.46	0.30%	1.22%	2.97%	1.30%	9.54%	6.56%	8.11%	24.88%
EWJ	14.78	0.07	0.48%	1.03%	2.85%	1.65%	4.08%	1.86%	5.20%	14.04%

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Japanese equity market ETF: EWJ

Japan’s EWJ (which is a USD-denominated NYSE-traded ETF) gained +1.03 pct W/W to close at 14.78.

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

Interactive EWJ Monthly data:

Interactive EWJ Weekly data:

Interactive EWJ Daily data:

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U.K. equity market ETF

The EWU (UK market ETF trading in the US in USD) gained +1.66 pct W/W to close at 26.40. That’s a gain of almost +5.0 pct in three weeks.

Since Oct-05 (16.65), the gains are astounding.

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

Interactive EWU Monthly data:

Interactive EWU Weekly data:

Interactive EWU Daily data:

EWU Daily data:

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Canada’s equity market

The Canadian ETF that trades in the US as EWC (priced in USD) gained +2.79 pct W/W this week, closing at 31.70. It hit an all-time high of 31.77. A week earlier, EWC had been up +3.28 pct on the week. I wrote, “That’s certainly the Wow factor.” This week was almost as good.

“But, be careful the strength of the Cdn Dollar (Loonie). Should it fall down, so too would the equity market, and vice versa.” I wrote that, but it is becoming clearer by the week that maybe Washington wants a Cdn Loonie at par, followed by a Common Dollar.

And Canada has a Prime minister “looney” enough to do that too.

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

Interactive EWC Monthly data:

Interactive EWC Weekly data:

Interactive EWC Daily data:

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US Equity Markets Review

The DJIA, S&P 500, NASDAQ Composite, and Russell 2000 small cap index have been doing yeoman’s work, lifting +2.17 pct, +1.44 pct, +1.52 pct and +0.41 pct respectively W/W. They were very strong a week ago as well.

DJIA (interactive) chart

A dozen NYSE DJIA stocks to watch.

NASDAQ Composite (interactive) chart

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A dozen NASDAQ stocks to watch.

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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.

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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
AA	47.35	2.06	4.55%	13.66%	20.48%	15.04%	61.44%	34.82%	53.78%	52.79%
CAT	85.13	1.04	1.24%	8.02%	7.64%	5.45%	39.19%	27.46%	42.50%	22.14%
INTC	25.97	-0.03	-0.12%	5.23%	8.57%	11.80%	27.62%	26.93%	17.35%	46.81%
XOM	90.33	0.71	0.79%	4.48%	8.05%	6.56%	21.89%	16.69%	24.32%	40.99%
UTX	75.00	1.01	1.37%	3.31%	5.50%	5.22%	19.41%	15.30%	16.42%	22.09%
BA	101.88	1.10	1.09%	3.03%	7.06%	2.94%	14.25%	11.92%	15.60%	28.01%
MRK	50.85	0.08	0.16%	2.81%	0.73%	1.23%	15.52%	1.27%	13.53%	37.66%
HPQ	47.25	-0.10	-0.21%	2.76%	5.92%	3.46%	13.53%	14.74%	8.55%	51.35%
GE	39.50	0.50	1.28%	2.65%	3.62%	4.50%	4.03%	11.64%	4.25%	20.91%
MMM	90.22	0.29	0.32%	2.39%	3.88%	3.20%	15.28%	17.60%	13.68%	25.95%
JPM	50.05	0.52	1.05%	2.21%	2.23%	-0.54%	4.12%	1.96%	4.29%	20.92%
AXP	62.83	-0.50	-0.79%	2.15%	2.63%	-0.49%	4.09%	9.54%	6.47%	22.60%
JNJ	63.43	0.07	0.11%	2.09%	3.14%	1.57%	-4.47%	1.73%	-4.82%	5.24%
PG	62.66	-0.27	-0.43%	1.92%	2.12%	0.38%	-2.91%	-1.14%	-3.60%	10.82%
HON	60.14	-0.30	-0.50%	1.79%	6.67%	3.26%	33.35%	27.88%	32.00%	58.30%
C	52.52	-0.32	-0.61%	1.59%	1.37%	-2.14%	-4.94%	1.78%	-3.42%	9.71%
WMT	49.15	0.32	0.66%	1.57%	1.95%	-0.26%	3.36%	3.67%	2.44%	11.30%
GM	37.03	-0.51	-1.36%	1.48%	-2.94%	10.21%	25.74%	15.65%	20.42%	30.76%
HD	40.87	-0.07	-0.17%	1.41%	3.42%	8.15%	-0.49%	7.86%	1.89%	19.96%
KO	53.11	0.48	0.91%	0.97%	0.91%	3.51%	9.32%	6.48%	9.39%	23.23%
MCD	51.91	0.26	0.50%	0.93%	2.08%	-0.65%	18.33%	8.96%	17.39%	56.50%
VZ	41.76	0.33	0.80%	0.51%	1.68%	-3.38%	10.42%	11.69%	11.87%	31.57%
MO	71.70	-0.37	-0.51%	0.14%	2.55%	1.75%	10.44%	3.08%	8.05%	24.54%
PFE	25.91	-0.07	-0.27%	-0.04%	1.09%	-1.82%	-1.45%	-2.85%	-2.74%	13.29%
DIS	34.37	0.12	0.35%	-0.35%	1.54%	1.72%	0.50%	-1.01%	-2.39%	19.76%
IBM	108.60	-0.68	-0.62%	-0.39%	2.50%	4.57%	11.65%	14.40%	9.32%	46.28%
MSFT	29.82	-0.25	-0.83%	-0.50%	-0.03%	-2.29%	-0.13%	4.23%	-4.42%	33.96%
T	40.40	-0.08	-0.20%	-0.64%	-0.83%	-0.39%	15.59%	4.02%	16.33%	52.11%
AIG	69.55	0.24	0.35%	-0.76%	-1.28%	-3.86%	-3.60%	3.95%	-2.14%	19.17%
DD	51.55	0.05	0.10%	-0.81%	1.22%	2.08%	5.12%	4.54%	3.66%	30.34%

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)

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Value Line Report(s) this past Friday

The reports from Value Line this week are on General Electric (GE), Hewlett-Packard (HPQ), IBM (IBM) and Intel (INTC).

General Electric and Intel are Cara Global Best 100 Companies. And Hewlett-Packard and IBM in recent years have made great strides forward. All four could serve you well as core portfolio positions.

But, prices operate harmonically in a rhythm. In time, usually about every four to five years, they revert to the mean average. As market prices are moving into record high levels around the world, there is reason for joy, but also for caution.

Protective measures are needed to save the equity gains from destruction. The next four years will not be as good as the past almost five.

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(GE: Value Line Report Jul. 13: next one is due Oct. 13)

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(HPQ: Value Line Report Jul. 13: next one is due Oct. 13)

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(IBM: Value Line Report Jul. 13: next one is due Oct. 13)

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(INTC: Value Line Report Jul. 13: next one is due Oct. 13)

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The Dow 30 Company links

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

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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 May. 4: next one is due Aug. 3)

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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 May 25: next one is due Aug. 24)

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American Express [GICS 40, Dow 30]
(AXP: Yahoo Finance file)
(AXP: StockChart chart)
(AXP: Billcara2 chart)
(AXP: ADVFN Financial Data)
(AXP: Value Line Report May 25: next one is due Aug. 24)

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AT&T [GICS 50, Dow 30]
(T: Yahoo Finance file)
(T: StockChart chart)
(T: Billcara2 chart)
(T: ADVFN Financial Data)
(T: Value Line Report Jun. 29: next one is due Sep. 28)

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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 Jun. 22: next one is due Sep. 21)

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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)

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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 May 25: next one is due Aug. 24)

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Coca Cola [GICS 30, Dow 30]
(KO: Yahoo Finance file)
(KO: StockChart chart)
(KO: Billcara2 chart)
(KO: ADVFN Financial Data)
(KO: Value Line Report May. 4: next one is due Aug. 3)

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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 May 18: next one is due Aug. 17)

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

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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 Jun. 15: next one is due Sep. 14)

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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 Jul. 13: next one is due Oct. 13)

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General Motors [GICS 25, Dow 30]
(GM: Yahoo Finance file)
(GM: StockChart chart)
(GM: Billcara2 chart)
(GM: ADVFN Financial Data)
(GM: Value Line Report Jun. 1: next one is due Aug. 31)

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

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

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

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

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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 Jul. 13: next one is due Oct. 13)

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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 Jun. 1: next one is due Aug. 31)

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JP Morgan [GICS 40, Dow 30]
(JPM: Yahoo Finance file)
(JPM: StockChart chart)
(JPM: Billcara2 chart)
(JPM: ADVFN Financial Data)
(JPM: Value Line Report May 25: next one is due Aug. 24)

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McDonalds [GICS 30, Dow 30]
(MCD: Yahoo Finance file)
(MCD: StockChart chart)
(MCD: Billcara2 chart)
(MCD: ADVFN Financial Data)
(MCD: Value Line Report Jun. 8: next one is due Sep. 7)

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3M Company [GICS 20, Dow 30, Cara US 100 June 25-06]
(MMM: Yahoo Finance file)
(MMM: StockChart chart)
(MMM: Billcara2 chart)
(MMM: ADVFN Financial Data)
(MMM: Value Line Report May 18: next one is due Aug. 17)

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

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Microsoft [GICS 45, Dow 30]
(MSFT: Yahoo Finance file)
(MSFT: StockChart chart)
(MSFT: Billcara2 chart)
(MSFT: ADVFN Financial Data)
(MSFT: Value Line Report May 25: next one is due Aug. 24)

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

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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 Jul. 6: next one is due Oct. 6)

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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 Apr. 27: next one is due Jul. 27)

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Verizon [GICS 50, Dow 30]
(VZ: Yahoo Finance file)
(VZ: StockChart chart)
(VZ: Billcara2 chart)
(VZ: ADVFN Financial Data)
(VZ: Value Line Report Jun. 29: next one is due Sep. 28)

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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 May 11: next one is due Aug 10)

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Wrap up:

I think the Starbucks staff is happy not to see me. When I turn on that laptop, and start typing as fast as two fingers will go, frown on forehead, hoping to beat the one-hour clock for the free Internet, looking at markets for the first time (since the hotel is transitioning to new management and they cut off Internet and Financial Entertainment TV), producing and uploading a daily report, downloading an average of over 200 letters a day (down a lot, thank you), replying to as many as possible, and generally ticking off every tourist within 100 feet (which happens to be a lot), the Starbucks people just crank up the music, thinking they can compete.

But they never met Bill Cara before. (LOL)

For today anyway, I am getting settled in a new place, using Julian's computer/ISP. But, you know, wherever we are in the world, we connect somehow. It’s a small Web.

You’ll just have to excuse the typos.

Done. Seven hours and five minutes. It took me five minutes to understand his desktop Dell, and strange keyboard.

Tell me, why does every manufacturer always move the keys around. Instead of hitting “Delete,” I’m hitting “Home.” At home, I’m always deleting.

I’ll just have to get used to the Bahamas way – where they drive on the wrong side of the road, and all.

This week was definitely a slice.

Next week, I’ll have to exchange a swimsuit for a real suit – first time – and go into town to meet the Securities Commission of the Bahamas. Not being the Securities and Exchange Commission or the Ontario Securities Commission, they probably haven’t been reading my blog, which means, of course, I hold a good chance of being approved.

Now that I think of it, Julian used to be Vice-Chairman of SCB too. Hmmm.

I assure you, this is going to be fun.

I’m sorry that I couldn’t get the time today to download the Impulse Report from Jock, or the RSI reports from Chris and David. Actually, I could download them, but then I’d have to go to Starbucks (Julian doesn’t have a wireless network) to use my Gadwin Print Screen software that I use to grab charts for uploading to my server, which I then link to this WIR.

Unfortunately, Presidio doesn’t have all the tools I need to get the job fully completed. Next week maybe.

We’ll see. No promises.

Tomorrow, if Starbucks lets me in, I may have a chance to upload those reports. Also, I have been thinking of all the opportunities for B&B, and I may do a briefing for you tomorrow as well.

What else is there to do down here, anyway, but blog?

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