The spark was a revised bid, $10/share instead of $2, for bankrupt Bear Stearns by JP Morgan Chase, apparently with Fed approval. The proof was in the T-Bill yield, which popped +103% to 1.015.

In addition there was huge media hype that the latest US National Association of Realtors report was actually a positive one. The data shows that Existing Home Sales climbed +2.9% in February, the first increase since July 2007. However, dramatically lower prices helped as median home selling prices fell to $195,900 from $213,500 a year ago February.

So the DJIA, S&P 500 and Nasdaq popped +1.52%, +1.53% and +3.04% respectively to 12549, 1349.9 and 2236.8. The Toronto Exchange lifted +1.91% to 13019.

Sector leaders were Basic Materials (XLB +3.6%), Tech (XLK +3.5% and Consumer Discretionary (XLY +3.3%). The laggards were the Defensive ones, Utilities, Staples, and Healthcare. Financials (XLF +1.3%) did not gain as much as the broad averages, which shows that the rally was caused by improving conditions in the credit markets that has been affecting the economically sensitive sectors, and industries like Chemicals, Retailers, Transports and Tech, which were all strong on the day. Goldminers ($XAU) were losers (-0.48%).

On the deal’s front, the US Department of Justice approved the $4.4 billion XM Satellite/Sirius merger.

US Treasury yields rallied, which helped push the USD higher. The 30-year long bond ($USD -1.78%) dropped to 118.80, and the yields on the 30-year ($TYX +1.47%), 10-year ($TNX +1.94%), and 5-year ($FVX +2.60%) rallied to 4.312, 3.522 and 2.600 respectively.

Crude Oil ($WTIC) prices dropped -$0.98/bbl at $100.86 on the strengthening $USD (+0.21%), which closed at 72.90. The Euro (0.25%) and Yen (-1.79%) dropped while the Pound was flat and the Loonie lifted (+0,60%).

$GOLD sold down (-1.30/oz) to 918.70, but appears stable.

This morning at 8:40am, spot gold (929.82+), palladium (442++), platinum (1941+++) are stronger, while silver is a bit weaker.

In futures markets, the June Euro is up to 155.24, the May Crude Oil up to 101.29, and the June DJIA contract at 12559.

Clearly, the USD is a little weaker, so commodities are likely to lift.

Overnight, the Asia-Pacific markets were robust: Australia (+3.34%), Hong Kong (+6.43%), India (+6.03%) and Japan (+2.12%).

At 8:54am ET, the European bourses are up between +3.0% and +3.2%, which indicates a strong US open.

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Comments & Outlook

Contraction of credit by the Money Center Banks forced traders to take profits and losses last week in bizarre market action. At the source of the problem was the rejection of some interbank trading that is essential to stable markets.

The core of that problem was large investment bank Bear Stearns that on Wednesday reported all was fine, followed up a day later that they were actually bankrupt, unable to make payments that day.

After JP Morgan jumped into the fray with emergency support from the Fed, the rest of Wall Street was still unnerved at the prospects of their lack of credibility and the assured onset of humungous lawsuits that would mire the industry in courts for years. But, then along came a deal between JP Morgan and Bear Stearns that would bring a large measure of relief, despite cries from traders who lost more money on they had believed a deal was a deal.

In the end, the capital markets both won and lost. The foundation of markets is now always going to be suspect in that a deal might never be a deal, but at least the credit ring is presumed to always stay intact as long as the public servants in Washington don’t impeach the Fed and the Treasury Secretary for stealing from the future to address the damages of the present.

So for now the capital market will go forward, like a patient exiting the hospital in bandages in a wheelchair, with hopes of a full recovery that remains to be seen. Clearly the psychology of markets has been fundamentally changed by this experience.

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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
WMT	53.63	77.41	80.91	79.34	Distribution Zone (for 2 days)
ATVI	26.55	73.10	51.10	44.44
RIMM	111.83	72.72	61.34	66.15
KO	61.18	72.45	61.56	73.34
TT	45.79	71.47	74.34	57.11	Sell alert (trig. 6 days ago [on 2008-03-14 at $45.46, +0.73% chg], after a 1 day DZ)
ECA	72.23	70.66	53.09	34.77	Sell alert (trig. 5 days ago [on 2008-03-17 at $76.34, -5.38% chg], after a 2 day DZ)
NKE	67.27	70.39	69.09	80.05
COST	65.50	67.69	54.18	70.38
NUE	71.26	66.93	76.17	56.84	Sell alert (trig. 3 days ago [on 2008-03-19 at $68.30, +4.33% chg], after a 1 day DZ)
AMAT	20.91	65.53	73.19	55.09
CHRW	57.85	64.34	69.35	71.64
PG	69.97	62.47	63.99	75.47
ORCL	20.77	60.62	59.20	70.93
DNA	78.84	57.25	74.91	52.63
GE	37.40	55.76	66.94	75.82
BBBY	31.16	41.01	57.38	70.74
BC	17.92	30.53	55.02	76.09
KSS	46.57	29.98	54.93	70.06	Buy alert (trig. 4 days ago [on 2008-03-18 at $42.53, +9.50% chg], after a 1 day AZ)

At least one RSI value <30:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
UBS	29.29	12.37	20.93	50.51	Buy alert (trig. 4 days ago [on 2008-03-18 at $28.85, +1.53% chg], after a 2 day AZ)
SBUX	17.89	15.50	34.91	53.81
SNDK	21.77	21.21	19.57	46.85
KB	56.40	22.09	31.55	54.96	Buy alert (trig. 1 days ago [on 2008-03-24 at $56.40, +0.00% chg], after a 5 day AZ)
BMY	21.27	25.15	25.44	43.14	Buy alert (trig. 4 days ago [on 2008-03-18 at $21.35, -0.37% chg], after a 2 day AZ)
GOL	16.13	26.76	31.36	50.93	Buy alert (trig. 3 days ago [on 2008-03-18 at $16.45, -1.95% chg], after a 8 day AZ)
GSK	42.14	27.63	34.89	49.74	Buy alert (trig. 5 days ago [on 2008-03-17 at $41.03, +2.71% chg], after a 1 day AZ)
INFY	33.88	28.06	23.04	36.88	Buy alert (trig. 3 days ago [on 2008-03-18 at $34.47, -1.71% chg], after a 1 day AZ)
JCP	43.67	28.15	47.81	60.89
WFMI	33.57	29.63	37.55	54.54
KSS	46.57	29.98	54.93	70.06	Buy alert (trig. 4 days ago [on 2008-03-18 at $42.53, +9.50% chg], after a 1 day AZ)
AET	43.09	32.56	17.26	33.15
TGP	27.22	34.96	32.34	19.39
IBN	35.95	35.09	12.93	30.89
OXPS	20.95	36.05	23.02	46.33
CCJ	33.06	37.78	37.62	27.75
PTR	122.55	40.49	22.78	34.27
CHA	60.71	46.69	27.32	29.30
IBKR	27.16	47.13	29.60	35.80
NOK	30.30	47.84	26.65	36.35
CEO	134.75	49.89	36.75	22.62
BHP	62.81	50.60	35.04	28.87
SU	93.92	53.77	39.88	27.49
ABX	41.94	55.87	36.97	19.81
PBR	95.84	57.94	36.28	23.66
IMO	50.27	58.21	40.58	28.55
GG	37.31	65.71	46.72	26.96
SLW	15.56	65.73	44.65	27.66	Sell alert (trig. 5 days ago [on 2008-03-17 at $18.17, -14.36% chg], after a 2 day DZ)

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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	46.55	0.55	1.20%	27.39%	23.94%	5.96%	10.39%	3.84%	0.45%	-4.06%
BAC	42.45	1.63	3.99%	18.94%	15.54%	-0.35%	4.66%	0.40%	-16.09%	-17.88%
C	23.27	0.77	3.42%	17.64%	11.29%	-7.36%	-19.54%	-24.89%	-50.05%	-55.01%
AXP	47.41	1.43	3.11%	15.61%	14.16%	5.22%	-7.11%	-10.95%	-18.80%	-17.45%
HD	29.26	1.20	4.28%	13.63%	13.06%	5.37%	12.06%	8.33%	-13.64%	-23.44%
AIG	46.11	1.09	2.42%	11.97%	7.53%	-5.67%	-18.10%	-23.12%	-30.93%	-32.31%
GE	37.40	-0.09	-0.24%	10.59%	16.04%	11.48%	1.74%	-0.35%	-8.45%	4.41%
VZ	36.97	0.85	2.35%	9.31%	5.39%	2.13%	-14.44%	-17.46%	-16.21%	-3.02%
T	38.03	1.18	3.20%	8.56%	8.63%	8.72%	-7.24%	-8.36%	-10.03%	-2.19%
MRK	44.25	0.89	2.05%	8.01%	5.99%	-4.03%	-22.87%	-25.93%	-14.38%	-0.45%
WMT	53.63	0.40	0.75%	7.65%	7.47%	7.32%	14.35%	10.03%	21.97%	11.94%
INTC	22.13	0.38	1.75%	7.12%	10.26%	11.49%	-12.70%	-18.97%	-14.82%	14.84%
KO	61.18	0.14	0.23%	6.34%	3.96%	5.01%	0.15%	-3.21%	7.90%	27.33%
GM	20.38	0.88	4.51%	6.04%	-7.19%	-15.37%	-16.51%	-23.21%	-41.34%	-36.29%
PG	69.97	0.60	0.86%	4.84%	6.34%	5.68%	-3.24%	-5.37%	0.24%	9.67%
HPQ	47.93	1.43	3.08%	4.38%	1.31%	1.12%	-3.77%	-8.39%	-4.60%	18.55%
MSFT	29.17	-0.01	-0.03%	4.33%	4.66%	5.23%	-17.18%	-20.26%	0.31%	4.10%
DIS	32.04	0.14	0.44%	4.09%	4.16%	-1.63%	0.63%	-3.61%	-6.64%	-8.43%
UTX	70.34	1.33	1.93%	3.88%	4.22%	-2.62%	-6.48%	-10.03%	-10.61%	5.41%
JNJ	64.89	-0.49	-0.75%	3.58%	5.50%	2.71%	-1.55%	-4.39%	-0.48%	7.24%
IBM	119.06	0.73	0.62%	3.32%	4.49%	10.17%	13.73%	6.64%	2.42%	25.29%
MCD	55.77	1.35	2.48%	1.81%	6.70%	0.14%	-4.01%	-7.53%	1.47%	23.80%
CAT	76.03	2.17	2.94%	1.66%	8.86%	6.81%	7.65%	4.58%	-2.17%	13.66%
MMM	78.64	0.66	0.85%	1.43%	2.78%	-1.29%	-4.92%	-8.83%	-14.34%	0.86%
BA	76.29	1.49	1.99%	0.08%	-0.40%	-8.13%	-11.93%	-15.25%	-25.97%	-16.15%
XOM	85.95	0.95	1.12%	0.05%	4.19%	-1.40%	-8.08%	-8.23%	-6.30%	14.63%
PFE	20.61	0.02	0.10%	-0.15%	-3.47%	-8.40%	-10.04%	-11.66%	-15.60%	-19.68%
DD	46.66	1.21	2.66%	-0.68%	3.69%	1.52%	6.68%	3.16%	-5.95%	-8.56%
CVX	84.01	0.80	0.96%	-1.56%	-1.47%	-1.65%	-10.11%	-11.08%	-10.96%	13.99%
AA	35.04	0.36	1.04%	-8.73%	-4.26%	-4.13%	-3.02%	-5.32%	-5.32%	2.49%

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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The Americas

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

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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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Sector ETF Summary for the US equity market

The tables I show in this section are for ten (GICS) Sector Index Funds (ETF's) only, but they cover the full spectrum of the US equity market.

Table 1: Cara ETF 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
XLF	26.74	0.50	1.91%	11.56%	9.95%	-1.69%	-5.71%	-10.33%	-21.63%	-26.13%
XLY	32.27	1.02	3.26%	7.42%	7.00%	0.69%	0.22%	-3.82%	-12.29%	-16.53%
IYZ	23.77	0.73	3.17%	7.12%	2.90%	-1.12%	-18.51%	-21.73%	-29.21%	-23.62%
XLK	23.18	0.79	3.53%	5.75%	5.27%	3.25%	-11.26%	-14.84%	-13.02%	-1.65%
SPY	134.72	2.64	2.00%	3.94%	3.86%	-0.66%	-7.04%	-9.72%	-11.19%	-6.05%
SMH	29.80	0.71	2.44%	3.91%	4.09%	3.51%	-4.97%	-10.75%	-22.34%	-13.27%
XLP	27.93	0.31	1.12%