On Monday, the collapse of Bear Stearns, which had been the fifth largest investment bank on Wall Street and its dramatic fire-sale take-over by JP Morgan, was the biggest news of at least the past year.

By the end of the day, the DJIA (+21.16 to 11972), S&P 500 (-11.54 to 1276.6), Nasdaq Composite (-35.48 to 2177) and Toronto Composite (12952), held stable after a massive liquidity pump by the Fed that started about 2:00pm ET, following which the DJIA, for example gained about +175 points.

The losing sectors were Energy (XLE -3.49%), Financials (XLF -2.29%) and Basic Materials (XLB -2.20%), while the Utilities (XLU +0.66%) gained a bit.

The Broker-Dealers ($XBD -10.3%) were hammered as the Bear Stearns fiasco erupted. But at noon the $XBD had been down by -14.9%.

International equity markets were also hammered.

Today, the world awaits the FOMC decision at 2:15pm ET. There are expectations of a Fed Rate cut of up to -1.00 point (-100 basis points), which would be dramatic. Yesterday, in an emergency action, the Fed cut its discount window by a quarter of a percentage point to 3.25%.

On the economics front, the New York Fed's Empire State Manufacturing Survey for March fell to its lowest point ever. US Industrial production for February fell -0.5%, capacity utilization dropped to 80.9%.

Crude Oil ($WTIC) dropped -$4.51/bbl to 104.23 under the weight of this worsening macro-economic picture.

$GOLD lifted by +$3.10/oz to 1002.60 as the $USD fell -0.32% to 71.44. The Euro (+0.54% to 157.22) and the Yen (+2.07% to 102.87) were very strong, but the Pound (-1.01% to 202.14) and Cdn Loonie (-1.37% to 100.15) sold off to support the USD.

This morning, the Japanese and Hong Kong equity markets were strong, and so too are the big three of Europe. The DJIA futures are up some +300 points over the noon reading yesterday.

The Euro is 1.5740, Crude Oil at 107.075, and precious metals up a bit overnight but far off yesterday morning highs in the market blow-up. This morning, the gold, palladium, platinum and silver prices at 6:50am ET were 1005.85, 473, 2000 and 20.22.

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Comments & Outlook

Had the Federal Reserve Bank not intervened, what is called the credit ring of the global financial services industry would have failed, leading to a collapse of the capital market as one bank after another would have reneged on payments to others, causing a domino effect of bank failures. The concept of financial Armageddon almost became reality.

History is being made in the capital markets. It is prudent for the owners of capital to now stand aside, ie, to withdraw all liquidity, to cause enough of a run on banks that the bottom line is that the weakest financial services companies fail and the strongest return to us, the owners of capital, a market that is free of the most basic conflicts of interest that have existed since the 1933 and 1934 US Securities Act and Regulations that permitted such behavior.

In effect, Wall Street has been hoisted on their own petard.

[From the urban dictionary] Petard: a device contrived to hurt another person; boobytrap; an explosive contraption used in warfare to blow in a door or form a breach in a wall.

To "hoist by one's own petard" means you have been hurt or caught by the very device that you intended to hurt someone else. This phrase is often used mockingly, as if to say that you stepped in your own mess.

The revolution in the financial services industry has begun. Should we join it, the victors will enjoy the spoils, with not much changed. But, if we decide to step back and force their hand, ie, let these banks destroy themselves, the victors will have to return to us with a new and much improved capital market, one that works for us and not against us.

It is time for those who provide services to be the servants and for the owners of capital to be the masters.

A simple philosophy in life, yes, but we all need to get back to the basics.

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Links & Charts

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International Economics Review

US Economic Calendar.

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Knobias Cara100 Tables

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Cara 100 Daily RSI-7 Charts

At least one RSI value >70:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
GG	44.22	80.86	69.93	56.57	Sell alert (trig. 7 days ago [on 2008-03-07 at $42.75, +3.44% chg], after a 1 day DZ)
ATVI	26.54	77.68	51.71	36.45
ABX	52.32	76.08	60.98	55.37
ECA	76.34	76.01	74.18	50.27	Sell alert (trig. 1 days ago [on 2008-03-17 at $76.34, +0.00% chg], after a 2 day DZ)
SLW	18.17	75.97	65.67	52.43	Sell alert (trig. 1 days ago [on 2008-03-17 at $18.17, +0.00% chg], after a 2 day DZ)
GGB	32.24	75.73	61.12	51.96
TT	45.46	71.52	67.40	51.23	Sell alert (trig. 2 days ago [on 2008-03-14 at $45.46, +0.00% chg], after a 1 day DZ)
NUE	70.42	66.98	71.09	60.18	Sell alert (trig. 8 days ago [on 2008-03-06 at $68.50, +2.80% chg], after a 1 day DZ)

At least one RSI value <30:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
SBUX	17.26	14.41	27.76	38.08	Buy alert (trig. 5 days ago [on 2008-03-11 at $17.74, -2.71% chg], after a 2 day AZ)
UBS	24.66	14.84	9.56	17.27	Accumulation Zone (for 2 days)
KB	52.05	18.90	21.40	22.09	Accumulation Zone (for 2 days)
LEH	31.75	19.85	17.87	15.17	Accumulation Zone (for 2 days)
SNDK	21.60	20.32	20.36	34.33	Buy alert (trig. 4 days ago [on 2008-03-12 at $22.52, -4.09% chg], after a 8 day AZ)
BC	15.37	24.49	33.57	38.93
DELL	19.39	26.20	28.22	41.80
INFY	33.01	26.63	25.89	21.73	Accumulation Zone (for 1 days)
GOL	14.86	26.67	18.78	22.82	Accumulation Zone (for 8 days)
BMY	20.46	26.77	16.98	20.02	Accumulation Zone (for 2 days)
PAYX	31.01	26.97	30.35	38.05	Buy alert (trig. 5 days ago [on 2008-03-11 at $31.63, -1.96% chg], after a 3 day AZ)
JCP	37.56	27.24	30.73	16.25
GSK	41.03	27.40	28.48	31.11	Buy alert (trig. 1 days ago [on 2008-03-17 at $41.03, +0.00% chg], after a 1 day AZ)
KSS	39.97	28.55	29.50	24.06	Accumulation Zone (for 1 days)
ADBE	30.79	28.77	21.86	24.31	Accumulation Zone (for 1 days)
TGP	27.30	28.97	34.06	16.08
DB	105.83	30.41	27.10	33.24
WFMI	30.65	30.56	23.30	13.48
BDK	62.47	31.97	29.85	32.75	Buy alert (trig. 5 days ago [on 2008-03-11 at $64.94, -3.80% chg], after a 1 day AZ)
GS	151.02	32.50	21.05	27.78
OXPS	19.56	33.41	14.59	26.93
CCL	36.48	33.89	31.06	27.38
TM	99.20	34.07	32.26	28.11
GOOG	419.87	34.13	19.34	28.97
AET	42.82	34.20	16.74	24.63
IBN	35.16	34.94	21.25	17.19
TGT	48.50	35.31	32.79	18.23
CTSH	26.81	35.89	31.60	26.93
ERJ	40.46	37.67	36.99	28.25
RY	44.48	39.82	27.59	25.76
IBKR	25.37	40.43	30.07	18.87
MFC	34.63	40.57	32.18	21.45
PTR	124.04	40.76	24.78	26.58
HDB	88.06	41.92	25.21	27.45
QCOM	38.50	44.64	38.76	27.35
YHOO	25.85	47.56	45.13	21.53
NOK	31.09	48.39	30.80	20.29
CHA	62.61	48.57	34.08	27.27
NTES	18.55	51.38	43.97	20.51
CHL	67.58	51.60	29.33	31.96
MICC	95.52	55.09	39.17	27.41
VIP	29.77	55.68	34.37	28.45
VCP	28.14	56.27	42.07	29.03
IMO	51.88	61.66	46.93	27.82
PBR	103.57	66.68	44.23	27.53

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International Equity Markets Review

Europe

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

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

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Here is the latest session data for the German DAX.

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

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

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

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Asia-Pacific

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 Singapore 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 Hong Kong Hang Seng index .

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

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

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US Equity Markets Review

DJIA (interactive) chart

NASDAQ Composite (interactive) chart

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
JPM	40.31	3.77	10.32%	10.50%	1.23%	-6.80%	-4.41%	-9.48%	-11.00%	-14.29%
CAT	74.46	-0.33	-0.44%	8.35%	1.72%	6.45%	5.42%	4.64%	1.04%	17.89%
GE	34.33	0.51	1.51%	8.30%	2.78%	-0.12%	-6.61%	-5.89%	-14.56%	-0.09%
JNJ	64.04	1.39	2.22%	4.42%	2.91%	1.81%	-2.84%	-5.20%	1.75%	5.83%
AXP	41.71	0.70	1.71%	4.17%	-0.88%	-7.54%	-18.28%	-20.07%	-28.33%	-24.91%
AA	37.10	-1.29	-3.36%	4.10%	-3.18%	3.86%	2.68%	9.44%	5.31%	10.81%
XOM	85.79	-0.12	-0.14%	4.04%	-2.23%	0.49%	-8.26%	-4.56%	-3.89%	22.80%
MMM	78.51	0.98	1.26%	4.01%	0.03%	-1.80%	-5.08%	-8.48%	-11.72%	4.29%
DD	45.83	-1.15	-2.45%	3.66%	-1.82%	0.75%	4.78%	5.02%	-4.08%	-8.27%
INTC	20.85	0.19	0.92%	3.63%	4.20%	3.68%	-17.75%	-18.93%	-16.10%	8.88%
T	35.79	0.76	2.17%	3.29%	2.08%	-5.52%	-12.71%	-11.63%	-10.52%	-3.22%
HD	25.70	-0.05	-0.19%	2.80%	-5.13%	-6.61%	-1.57%	-0.93%	-27.36%	-31.48%
WMT	49.95	0.13	0.26%	2.25%	0.12%	1.03%	6.50%	4.43%	15.30%	8.09%
UTX	67.56	-0.15	-0.22%	2.01%	-2.65%	-5.55%	-10.17%	-9.97%	-10.91%	4.58%
PG	67.05	0.31	0.46%	1.96%	1.06%	1.13%	-7.27%	-8.45%	-1.32%	8.83%
BAC	35.96	0.27	0.76%	1.84%	-8.22%	-15.78%	-11.34%	-13.76%	-27.37%	-27.53%
BA	75.49	-0.74	-0.97%	1.49%	-6.42%	-11.38%	-12.85%	-13.63%	-23.47%	-16.12%
MRK	41.85	0.88	2.15%	1.43%	-5.02%	-11.95%	-27.05%	-29.65%	-15.30%	-2.88%
IBM	115.55	0.32	0.28%	1.35%	1.16%	8.85%	10.37%	10.54%	0.90%	23.91%
MCD	54.28	-0.50	-0.91%	0.89%	2.11%	-1.84%	-6.57%	-9.17%	-0.66%	24.84%
MSFT	28.30	0.34	1.22%	0.89%	4.85%	-0.42%	-19.65%	-17.71%	-1.50%	3.55%
VZ	34.61	0.79	2.34%	0.70%	-4.63%	-8.51%	-19.90%	-19.70%	-18.74%	-4.71%
DIS	30.46	-0.32	-1.04%	0.00%	-6.02%	-6.25%	-4.33%	-7.67%	-8.75%	-9.37%
HPQ	46.42	0.50	1.09%	-0.62%	-2.48%	5.81%	-6.81%	-8.86%	-5.54%	16.31%
CVX	84.19	-1.15	-1.35%	-0.64%	-3.45%	0.71%	-9.92%	-6.43%	-7.41%	23.66%
KO	57.69	0.16	0.28%	-1.65%	-2.25%	-1.82%</