Preceding today’s Daily Report, I wish to extend my heartfelt wishes to members of the Cara community in over 100 countries for a festive holiday season. Working together, anything is possible.

May peace, joy, prosperity and love be yours today and throughout the New Year.

Beannachtai na Nollag agus na hAthbhliana (Gaelic)

Boas Festas E Feliz Ano Novo (Or) Feliz Natal E Um Prospero Ano Novo. (Portuguese)

Boldog Karacsonyl es Ujevl Unnepeket (Hungarian)

Buone Feste Natalizie Buon Natale e Felice Anno Nuovo (Italian)

Cestitamo Bozic (Yugoslavian)

Chung Mung Giang Sinh (Vietnamese)

Felices Pasquas Y felices ano Nuevo (Argentine)

Feliz Navidad y prospero Ano Nuevo (Spanish)

Frohliche Weihnachten und ein Glueckliches Neues Jahr (German)

Gajan Kristnaskon (Esperanto)

Gezuar Krishtlindjet! (Albanian)

Glædelig Jul Gledlig jol og Nyar (Icelandic, Danish)

God Jul and (Och) Ett Gott Nytt Ã…r (Swedish)

Gun Tso Sun Tan'Gung Haw Sun (Cantonese)

Happy Hanukkah (Hanukkah/Channukah)

Harambee (A Kwanzaa Greeting "Let's all pull together")

Hauskaa Joulua (Finnish)

Hristos se rodi (Serbian)

Hyvaa Joulua (Finnish)

Hyvää Joulua ja Onnellista Uutta Vuotta! (or God Jul och) (Finnish)

I'D MIILAD SAID OUA SANA SAIDA (Arabic)

Idah Saidan Wa Sanah Jadidah (Iraqi)

Il - Milied Ferriehi, u is - Sena it - Tajba. (Malta)

Joyeux Noël & Bonne et heureuse Année (France and Canada)

Kala Christouyenna! Kala Khristougena kai Eftikhes to Neon Ethos (Greek)

Kellemes Karacsonyi unnepeket (Hungarian)

Kung His Hsin Nien bing Chu Shen Tan (Mandarin)

La Maunia Le Kilisimasi Ma Le Tausaga Fou (Samoan)

Linksmu sventu Kaledu (and) Laimingu Naauju Metu (Lithuanian)

Maligayang Pasko (Filipino - Tagalog)

Maligayang Pasko At Manigong Bagon Taon (Philippines)

Mata-Ki-Te-Rangi. Te-Pito-O-Te-Henua (Rapa-Nui - Easter Island)

Mele Kalikimake me ka Hauloi Makahiki hou (Hawaiian)

Merry Christmas (English)

Mitho Makosi Kesikansi (Cree)

Mo'adim Lesimkha. Chena tova (Hebrew)

Nadelik looan na looan blethen noweth (Cornish)

Nadolic Llawen. Blwyddn Newdd Dda (Welsh)

Nathaal Vaalthukal (Tamil)

Nolag mhaith Dhuit Agus Bliain Nua Fe Mhaise (Gaelic - Irish)

Nollaig Chridheil agus Bliadhna Mhath Ur (Gaelic - Scot)

Nathaal Vaalthukal (Tamil)

Naya Saal Mubarak (Urdu and Hindi)

Noeliniz Ve Yeni Yiliniz Kutlu Olsun (Turkish)

Nollaig Chridheil agus Bliadhna Mhath Ur! (Scottish Gaelic)

Nollaig chridheil huibh (Scots Gaelic)

Nollaig Shona Dhuit (Irish)

Ojenyunyat Sungwiyadeson honungradon nagwutut.Ojenyunyat osrasay (Iroquois)

Ollick Ghennal Erriu as Blein Feer Die. Seihil as Slaynt Da'n Slane Loght Thie (Manx)

Pozdravlyayu s prazdnikom Rozhdestva i s Novim Godom (Russian)

Prejeme Vam Vesele Vanoce a stastny Novy Rok (Czech)

Rõõmsaid jõulupühi ja Head uut aastat! (Estonian)

Sarbatori vesele Sarbatori Fericite. La Multi Ani (Rumanian)

Sawadee Pee Mai (Thai)

Seasons Greetings (English)

Selamat Tahun Baru, dan, Selamat Hari Krismas (Malaysia - Bahasa Malayu)

Shana Tova (Hebrew)

Shenoraavor Nor Dari yev Pari Gaghand (Armenian)

Shinnen omedeto. Kurisumasu Omedeto (Japanese)

Shub Naya Baras (Hindi)

Shubha Naba Barsha (Bangla)

Solstice Blessings (Pagan, Wicca)

Sretan Bozic Vesela Nova Godina (Croatian)

Srozhdestvom Kristovym (Ukrainian)

Sung Tan Chuk Ha (Korean)

ubha nath thalak Vewa. Subha Aluth Awrudhak Vewa (Singhalese - Ceylon/Sri Lanka)

Tchestita Koleda; Tchestito Rojdestvo Hristovo (Bulgarian)

Tezze Iliniz Yahsi Olsun (Azeri - Azerbaijan)

Vitaiu iz svyatom Rizdva ta Novim Rokom (Ukrainian)

Vesele Bozicne. Screcno Novo Leto (Slovene)

Veseleh Sviat i scaslivoho Novoho Roku (Ukrainian)

Vesele Vianoce. A stastlivy Novy Rok (Slovak)

Vrolijk Kerstfeest en een Gelukkig Nieuwjaar! Zalig Kerstfeest en een Gelukkig Nieukjaar (Dutch)

Wesolych Swiat Bozego Narodzenia (Polish)

Yeni Yilnizi Kutar, saadetler dilerim (Turkish)

Zorionak eta Urte Berri On! (Basque)

---

If you would like to reply please do so in the Discourse. I’d love to hear from you. Also, if you would like me to make a correction to the above, please send me mail. BCara [at] BillCara.com

There are, of course, many views on this subject. I received the following parody of Christmas greetings on Christmas Day 2004.

---

Saturday Markets Re-cap For Fri. Dec. 21, 2007

“Roll up the rim to win” is a famous Canadian marketing campaign for Tim Horton’s (THI), but on Friday the boost belonged to another Canadian company, Research in Motion (NDQ:RIMM, TSX:RIM).

While Research In Motion was truly in motion, up almost +11 pct after reporting after the bell Thursday that 3Q net income more than doubled to $370.5 million vs $175.2 million a year earlier, on booming sales of BlackBerrys, it is a fact that at the very moment of the news release I was in Marathon Mall in Nassau purchasing the new BlackBerry 8300 Curve.

I could say Ballsie threw me a curve, but the guy came clean about his improper backdating of insider stock options, so that act of contrition and the fact that this company is becoming a global communications powerhouse earned its way back into the Cara 100.

So RIMM/RIM provided Friday’s bull tech momentum, but tech was not the reason the equity market rocketed on Friday. That was due to news of the $5 billion Merrill Lynch cash infusion from Singapore, which was important but not as much so as the confidence-booster that Humungous Bank & Broker will get through its mess with emergency funding from Asia and the Middle East.

The DJIA (+205.01 +1.6 pct), S&P 500 (+24.34 +1.7 pct), and Nasdaq Composite (+51.13 +1.9 pct) all surged during a session that featured quadruple witching on record volume. The usual suspects in a money-printing rally were the commodity-related sectors. Energy (XLE +2.3 pct), Telecom (IYZ +2.1 pct) and Basic Materials (XLB +1.7 pct) were very strong. Many of the gold stocks were up +5 to +10 pct or more.

So too were the Consumer Staples (XLP +1.31 pct) very strong, aided perhaps by a pullback in livestock and ag markets, but perhaps also just as a hedge trade to counter the bullish energy, chemicals, papers, metals, industrials, banks, brokers and tech. Maybe it was just (Cara 100) Walgreen (WAG +6.3 pct on the day).

The day started in hot fashion after the international markets were all up strongly and it finished strong due to the Witching hour.

Not all was ok in the market, however. Circuit City Stores (CC) reported a net loss of $207.3 million vs a year-earlier net loss of $20.4 million. The Consumer Discretionary sector (XLY) was up only +0.12 pct on the day. Utilities (XLU -0.58 pct) was down as Friday was essentially a liquidity-induced rally where hot money was chasing the Energy and Materials.

Even in the Cons. Discretionary sector, there were lots of big winners Friday -- CCL +2.9 pct as Carnival Cruise Ships to Nassau to meet the Trader Wizard are rapidly filling – and EBAY +2.8 pct on hopes that sales of my book boost their revenues. LOL

In economic news, November US Personal Income rose +0.4 pct, which is a good thing, but spending soared to its highest rate since 2005, up +1.1 pct. Besides, CPI is running at +4.3 pct.

The $USD weakened vs the Euro, and Treasury yields surged (+4.64 pct on the 5-year and +3.53 pct on the 10-year) as traders moved funds in riskier assets, including oil and precious metal contracts, which also surged.

Crude Oil ($WTIC) bounced back from early lows to trade up +2.47 pct to close the week at $93.31/bbl. $GOLD lifted over +1.0 pct to close at 811.40.

---

Comments & Outlook

Since on balance, the economy is contracting, prices are rising because money is being printed and debt expanded at a faster clip. The result is speculation and more inflation, which is causing a stretch between price and economic value.

This is not just a US and Americas situation. Equity prices throughout Asia-Pacific and Europe also closed higher across the board.

The dilemma for traders is that we trade prices. Short-term, we have ridden the wave as early in the week I noted that the short-term USD rally had failed on Monday afternoon, which indicated a burst rising equity prices to come.

This is an important trading lesson. If you have been observing my Buy and Sell Alerts in the Cara 100, you will have seen that a couple weeks ago virtually all signals turned profitable, but after the $USD rally ended (almost certainly temporarily), the negative market sentiment reversed, and many of those signals lost ground and some became negative performers.

To a trader like me, that’s part of the dance. If the other side wants to lead, I’ll close positions and take small losses. The objective is to win more times than you lose AND to win bigger than your average loss. Observing this table closely can help you do that.

If you recall, I have stated all along that the market doesn’t always (or even often) give you clear-cut trend and turn reversals, but your job #1 is to manage risk. So, after a trade you move trailing stops to take some gains and prevent big losses. In time, you will get to see that the Accumulation/Distribution Zone monitoring and the subsequent Buy and Sell Alerts that are signaled are useful tools. You also have to watch the corporate fundamental and quantitative data, and the economic data, including interest rates and forex market prices.

When I say, stick to your knitting, this is your knitting. Nothing a political leader, media personality or guru (including me if you wish) could say should move you away from your knitting.

All you need to do is pick your own watchlist of stocks – maybe they are conservative high income securities and maybe they are penny dreadfuls, which will require addressing the nuances of your strategies and tactics – but the methodology remains the same.

I think many of you have enjoyed a rather more festive season this year having learned some of these lessons. I will assure you now that 2008 will only get better -- maybe not for market prices, but for sure in your understanding and appreciation of trading.

Learning to trade is a little more difficult than learning to ride a bike, but as they say, once you learn the basics, you will never forget how.

---

Links & Charts

---

International Economics Review

US Economic Calendar.

---

Knobias Cara100 Tables

---

Cara 100 Daily RSI-7 Charts

At least one RSI value >70:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
VIP	41.98	98.37	85.53	70.99	Distribution Zone (for 1 days)
KO	63.07	94.48	76.11	53.33	Sell alert (trig. 6 days ago [on 2007-12-14 at $63.81, -1.16% chg], after a 1 day DZ)
MBT	97.13	90.62	80.04	61.49
NOK	38.53	90.42	57.66	55.29
LYO	47.97	90.01	81.68	75.51	Distribution Zone (for 1 days)
PBR	113.20	87.57	72.90	66.61	Sell alert (trig. 7 days ago [on 2007-12-13 at $110.59, +2.36% chg], after a 1 day DZ)
TEF	97.02	87.05	64.50	45.19
COST	70.08	86.81	64.37	64.18
HDB	129.49	86.50	62.13	50.97
PG	74.08	86.29	75.09	59.45
ABB	28.00	85.45	52.15	50.88
GOOG	696.69	82.53	64.33	57.95
MICC	122.75	82.25	67.43	65.49
RIMM	118.63	81.55	63.27	73.87
RIO	33.30	80.80	51.34	49.98
AET	58.55	78.72	72.24	62.68
VCP	30.49	78.41	51.82	38.67
NKE	66.27	78.29	76.52	65.42
ECA	68.15	77.45	58.66	61.97
EXC	82.26	77.05	57.79	42.76
ATVI	28.77	75.91	80.66	84.36	Distribution Zone (for 3 days)
IMO	54.00	74.79	61.15	70.86
SLW	16.84	74.70	62.29	68.56
TT	45.99	74.57	77.92	88.34	Distribution Zone (for 5 days)
OXPS	32.70	74.36	80.75	74.94	Distribution Zone (for 2 days)
SU	106.59	74.04	61.42	72.91
GGB	29.46	72.74	57.58	63.07
CHL	89.57	72.67	57.43	55.14
IBN	60.04	72.52	55.18	49.15
CVX	94.04	70.40	68.61	68.42
BBD	31.45	70.31	54.62	46.27
ORCL	22.71	70.21	71.83	70.67	Distribution Zone (for 1 days)
JNJ	68.03	70.20	77.94	61.69
CHRW	54.00	58.86	61.83	70.08
CTSH	35.83	46.83	53.41	75.09
LLTC	31.98	44.12	47.69	72.64

At least one RSI value <30:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
BC	17.95	16.48	25.56	27.19	Accumulation Zone (for 6 days)
BBBY	29.15	18.84	26.70	30.74	Buy alert (trig. 5 days ago [on 2007-12-17 at $29.36, -0.72% chg], after a 1 day AZ)
MU	7.53	19.17	25.28	23.24	Accumulation Zone (for 1 days)
SBUX	21.06	19.38	16.51	44.70	Buy alert (trig. 2 days ago [on 2007-12-20 at $20.53, +2.58% chg], after a 5 day AZ)
KSS	46.16	19.39	28.03	35.54	Buy alert (trig. 1 days ago [on 2007-12-21 at $46.16, +0.00% chg], after a 2 day AZ)
MCO	37.15	22.20	28.12	39.44
JCP	43.85	22.40	32.20	45.84
TGT	50.68	28.32	27.99	30.59	Buy alert (trig. 1 days ago [on 2007-12-21 at $50.68, +0.00% chg], after a 1 day AZ)
UBS	45.28	29.55	32.47	30.75
BDK	70.91	30.21	24.16	25.83	Buy alert (trig. 1 days ago [on 2007-12-21 at $70.91, +0.00% chg], after a 1 day AZ)
DNA	67.90	30.66	26.18	36.71
GFI	14.15	35.36	25.38	33.82
TCK	35.63	41.21	29.34	52.41
TS	44.57	46.83	29.67	45.31
NTES	19.16	55.99	48.54	25.77

---

International Equity Markets Review

Europe

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

---

Here is the latest session data for the London stock exchange FTSE.

---

Here is the latest session data for the German DAX.

---

Here is the latest session data for the French CAC 40.

---

Here is the latest session data for the Milan Italy stock exchange MIBTEL.

---

Here is the latest session data for the Swiss market index.

---

Asia-Pacific

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

---

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

---

Here is the latest chart for the Singapore index .

---

Here is the latest chart for the Shanghai Composite index .

---

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

---

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

---

Here is the latest chart for the Australian All Ordinaries index .

---

US Equity Markets Review

DJIA (interactive) chart

NASDAQ Composite (interactive) chart

Table: 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
IBM	111.05	2.21	2.03%	4.99%	2.01%	6.73%	14.17%	-4.91%	4.17%	15.79%
AIG	58.33	1.59	2.80%	4.82%	-5.08%	9.99%	-19.15%	-13.24%	-19.04%	-18.93%
AA	36.35	0.96	2.71%	3.30%	-1.52%	3.41%	23.93%	-2.81%	-9.89%	24.06%
INTC	26.96	0.55	2.08%	2.55%	-2.78%	7.54%	32.48%	4.21%	10.99%	32.35%
XOM	93.43	1.30	1.41%	2.47%	2.11%	5.82%	26.07%	1.21%	10.83%	23.14%
MSFT	36.06	0.54	1.52%	2.12%	4.43%	5.72%	20.76%	25.86%	19.32%	20.28%
UTX	77.83	1.43	1.87%	1.49%	-0.31%	5.95%	23.91%	-2.01%	8.17%	24.01%
DD	45.35	1.16	2.63%	1.39%	-3.90%	1.48%	-7.52%	-8.73%	-13.21%	-7.41%
WMT	48.21	0.36	0.75%	1.22%	-1.65%	5.42%	1.39%	9.00%	-0.37%	5.47%
HON	60.71	0.02	0.03%	1.22%	3.76%	11.05%	34.61%	3.44%	7.68%	35.63%
T	41.48	1.22	3.03%	0.83%	7.82%	10.23%	18.68%	-2.47%	4.77%	17.94%
MO	77.43	-0.19	-0.24%	0.79%	-0.22%	6.11%	19.27%	12.97%	12.90%	20.36%
BA	89.07	1.88	2.16%	0.74%	-4.39%	-0.52%	-0.11%	-13.18%	-8.36%	-0.97%
JNJ	68.03	0.70	1.04%	0.65%	0.52%	1.72%	2.45%	4.47%	9.53%	3.08%
GE	37.14	0.62	1.70%	0.62%	-0.24%	-1.41%	-2.19%	-9.96%	-4.28%	-1.67%
PFE	23.24	0.02	0.09%	0.61%	-4.75%	1.13%	-11.60%	-5.49%	-10.34%	-10.86%
GM	26.64	0.16	0.60%	0.45%	-6.92%	-1.91%	-9.54%	-23.76%	-25.92%	-9.85%
PG	74.08	0.89	1.22%	0.24%	-0.05%	1.67%	14.78%	6.76%	19.72%	15.66%
MMM	86.05	1.56	1.85%	0.14%	-0.16%	3.99%	9.95%	-6.14%	-1.56%	9.19%
HD	26.66	0.39	1.48%	0.11%	-9.60%	-7.91%	-35.09%	-22.66%	-33.27%	-31.48%
VZ	44.32	0.50	1.14%	-0.11%	-2.16%	3.94%	17.19%	-0.14%	4.43%	20.83%
HPQ	52.03	0.87	1.70%	-0.21%	0.37%	5.82%	25.01%	2.97%	14.35%	27.52%
DIS	32.94	0.61	1.89%	-0.21%	0.46%	3.45%	-3.68%	-4.80%	-3.66%	-4.63%
AXP	51.95	0.92	1.80%	-0.65%	-8.80%	-6.62%	-13.93%	-12.37%	-17.09%	-14.64%
MRK	59.15	0.61	1.04%	-0.71%	-2.51%	2.58%	34.37%	14.15%	19.98%	36.70%
CAT	72.73	1.22	1.71%	-0.90%	-1.98%	5.97%	18.92%	-6.95%	-10.73%	19.60%
KO	63.07	0.79	1.27%	-1.16%	-0.13%	1.24%	29.83%	11.53%	21.08%	29.61%
C	30.24	0.35	1.17%	-1.50%	-11.86%	-4.61%	-45.27%	-36.35%	-43.65%	-44.78%
MCD	60.03	1.24