Yesterday it was the commodity-price sensitives (Energy and Basic Materials) that got beaten down, while all other drivers were working in sync to push the market higher in New York, led by Technology, Industrials, and Utilities.

Futures strengthened in the morning after strong earnings came from Disney (DIS), Starbucks (SBUX), Nokia (NOK), NYSE (NYX), and Credit Suisse CS).

Capital spending was revised higher for June on a +31 pct increase in aircraft orders, and that took the Industrials to lift-off.

Nymex Crude Oil closed just below $77/bbl.

Treasury prices moved higher on mostly static jobless claims data and the USD moved higher against the Yen but gave back some to the Euro.

Italy's S&P/MIB moved up +309 points after Nasdaq announced it supports the London Stock Exchange's proposed acquisition of Borsa Italiana SpA.

Gold futures ended the session yesterday modestly higher, but copper turned negative. In the spot market overnight, gold has stayed around $666.

Elsewhere overnight, the headlines of the WSJ read “Lenders Clampdown”. The public that borrows money always ends up paying for the bad practices of the financial services community.

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The Cara Global 100 Stockwatch

Here are the Monday session Cara 100 gainers.

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Here are Cara 100 losers.

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

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Here are the Cara 100 stocks that had extreme volume changes. It pays to watch the price and volume extremes, ie, Money Flow, especially when markets start trending.

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Key Stocks plus Cara 100 In Focus

I don't understand how the analyst at my alma mater Canaccord could wait for Garmin (GRMN) to hit $100 before raising his 12-month Price Target from 77 to 92, and then downgrading the stock? Am I missing something?

Maybe that analyst needs a Garmin GPS to figure out which way's which? Do you think?

Hovnanian (HOV), maybe the most hated of my Cara 100 presently, rocketed +11.0 pct higher yesterday. Short squeeze? I didn't find any news yesterday. Maybe it's out today.

The folks at KNOBIAS, Inc provided the Cara 100 watchlists.

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Relative Strength Index (RSI) analysis of the Cara 100 company stocks .

Here are the charts of up to a dozen stocks with RSI-7 above 70 and below 30, from Thursday.

RSI > 70 (3)

RSI < 30 (12 of 23)

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Here are the Cara 100 stocks trading with the highest and lowest RSI-7, sorted by (i) daily and (ii) monthly values, for Tuesday:

“Chris,” used BillCara2.com data that is unsmoothed, unlike the data from Worden used by “David”.

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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 DJIA rallied at the close for another triple-digit miracle.

Advancing stocks beat decliners on the NYSE nearly 2 to 1 where turnover was just shy of 2 billion shares.

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NASDAQ Composite (interactive) chart

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Before thinking about the US market in the morning, I advise keeping a close eye on the FTSE 100 index of the UK market, as it usually will give a tip-off to the day or week ahead for the US market.

There is a lot of technical support in the Dow 12750-12800 area (May-June-07 trading). There is even more support down at about the 12050 level of March-07. However, if the Dow 12750 level is broken this week, I believe there will be a dramatic sell-off down at least to 12000. If that level doesn’t hold, then there could be a rapid decline, somewhat like 1987, with the Dow falling below 10000.

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International Equity Markets Review

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

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

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

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Asia-Pacific

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

These exchange indexes were mostly up. I have a sense that these markets are going to stem further losses now, for the next couple months.

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

The Nikkei 225 was flat earlier today.

The Mar-07 16600 support level for the Nikkei 225 of the very important Japanese market is the critical one to watch this summer. I set mental stops no worse than -8 pct from the cycle high, which, in the case of the Nikkei 225 index just happens to be near the 16600 technical support level.

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Here is the latest chart for the Singapore index .

Today, there was not much happening in Singapore, again.

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Here is the latest chart for the Shanghai Composite index .

Note the phenomenal run up in the Shanghai equity market. But, prior to debt being extended to the Chinese to buy these stocks, the market floundered. there was concern by local traders that management of many companies was not up to par with international best practices. Too many state run companies were overloaded with salaries, process inefficiencies, nepotism, and the like.

Funny how debt can transform the image of a marketplace. Now everything seems ok.

There is still a daytrading gaming mentality to the shanghai market though. Traders know stocks by the ticker symbol, which in China and a few other Asia-Pacific markets, is just a number (maybe a lucky number?).

In Hong Kong, for instance, the (Cara 100) China National Offshore Oil Company (CNOOC), which trades on the NYSE as CEO, trades as 0883, which is a really lucky and prosperous number in China.

Do you really think the Central Committee of the People's Republic would permit an unlucky ticker number like 0444? No way.

Shanghai was up +153 points (+3.47 pct) to 4560.8, and set an all-time record high.

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Here is the latest chart for the Hong Kong Heng Seng index .

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

Today, the volatile Bombay Stock Exchange BSE 30 Sensex index had a gain of +153 points (+1.02 pct) to close at 15138.

Download Astaire Weekly Report on India (dated July 31) courtesy of Deepak Lalwani.

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Europe>

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

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

Last Wednesday, the FTSE dropped below the first level of technical support in the 6400-6500 April and June levels to close at 6215. The second level of support for the FTSE appears to be the 6000 level of March-07. If the FTSE 6000 level is taken out by a falling UK market, I suspect that the global Bear has started.

Today, the FTSE was flat at 6287.

I still do not yet see a recovery, but merely a holding action.

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Bonds & Yields Review

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

The US long bond moved up to 110.19. I anticipate the rally running out of steam at about these levels, particularly if the equity market continues to rally, and safe-haven funds move from debt to equity.

The low this month was 106.0 and the cycle low (closing basis) in mid-June was 104.88.

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US Dollar Review

Here is the chart of the week’s trading.

The trade-weighted USD dropped a little to this point (8:30am ET) to 80.740.

Should the US equity market continue its longer-term upward bias, I do think the $USD will weaken again, and drop below 80. If there is a rally failure, the USD will likely hold close to these levels.

But as I say, it looks like an equity rally will unfold for the next month or two.

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Commodities Review

Interactive Charts of the CRB Commodities Index:

$CRB Index

The index level is presently 320.51, a small gain on the day.

This is a crucial level.

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Oil Review

Interactive Chart of Weekly Crude Oil:

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

This morning (8:40am ET), the e-mini September contracts are at 77.075, up from yesterday’s mid-morning downward spike.

Over 77: is there a hurricane coming I don’t know about yet? (LOL)

This continues to be a nervous and side-tracking energy market, with weekly surprises in the inventory totals, and crazy action in the futures pits.

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Gold & Precious Metals Review

Here is the Recent Spot Gold chart.

Gold (spot) is at 666.00 at 8:45am ET. I still like the basing action, and the subtle weakening I feel in the $USD.

If the gold market is to move “Onwards and upwards to 750 this quarter”, it may have to move counter-cyclically to the broad equity market for a while.

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Here is the Recent Spot Silver chart.

Silver (spot) is spiking a bit here in the past few minutes (8:45am ET). It’s presently at 12.94. Could it be going into the 13’s today?

More volatile than gold, the silver metal is a precious metals bellwether.

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Here is the Recent Goldminers stock index chart.

The $XAU index is at 146.48, up +0.76 pct on the day. Yesterday, I opined that I think it was a good time to re-enter. I think the rally starts now.

I love the long base trading pattern going back for about 20 months. That is a powerful base, like a spring ready to go off. The goldminer share market is setting up for a major run higher. Maybe I’m getting antsy, but I feel it coming.

For the past 48 hours, I see a similar pattern in the spot price of gold. Admittedly, 48 hours is not long and cannot be compared to a period of 20 months, but it's the same pattern.

Yes, I believe that share prices of the precious metal miners are headed much higher. But then, at the cycle peak, that is probably the end of this 2002-2007 Bull market in the broad equities.

After the peak, I am not so sure the broad market will come down fast. It could be like 1973-74, which was a protracted Bear market. Gold shares, however, will likely come down relatively faster as they usually do.

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That’s it for today. Please direct all discussion to the Cara’s Commentary & Community Chat. I’ll join in there too.

The new format will stop the overload on the server as users are continuously downloading all these heavy graphics files if the two parts are combined.