This fight to save the banks has been joined by central bankers and finance ministers, using the People’s money, with nobody permitted to rock the boat. However, if this were your problem or mine, those same banks wouldn’t skip a heartbeat before calling in our loan and taking the boat with it.

In essence, that is why we don’t yet live in a fair society.

So, without further adieu, let’s look into a report by David Einhorn as to how deceitful are these banks. “Exposing Lehman’s Lies” is the type of investigation and analysis that independent traders need.

Lehman Brothers (LEH) had a bad week in the market, and I am sure that Einhorn’s article didn’t help. The stock plunged -17.3% this week, -23.0% over 4 weeks, -41.9% YTD, and -51.3% over the past year.

But I suppose if you are a LEH shareholder, consider yourself fortunate you are not stuck in Citigroup (-61.6% over 52-weeks). And you can point to UBS (-54.2%), Merrill Lynch (MER -53.8%) and Morgan Stanley (MS -51.2%) as being in about the same position.

How much worse can this get for Humungous Bank & Broker (HB&B)? I happen to think there is a further -20% to come, mostly because the banks are still hiding the losses, refusing to take write-offs of permanently destroyed assets. What David Einhorn has done is merely invite at least a million eyes to the problem. From this point forward, regulators and auditors who look the other way may be found culpable and could be charged for participating in a fraud. They must take action. The problem is not just Lehman; it's all these major banks.

So on that happy note; let’s look into the week that was a bummer, down between -3.33% and -3.90% for the major US equity market indexes and even more for most of the international markets.

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Global Economics Review

The macro-economic data continues to worsen, both in America and abroad.

Here are the key US economic reports and the Econoday analysis from last week.

US Economic Calendar.

US Producer Price Index data for April.

Econoday reported, “The fiscal YTD deficit for 2008 remains quite large compare to that for last year, a $152.2 billion deficit versus $80.8 billion. Fiscal YTD receipts have slowed to a 3.0% gain while outlays were up 7.4%. Individual income tax receipts are up 6.0% while corporate income taxes are down 14.7%.”

This is not good news for the $USD.

US Existing Home Sales data for April.

I had commented, “A pick-up in sales is needed to start reducing the overhang in supply, which is depressing prices.” The negative report that followed from the US National Association of Realtors (NAR) stated that re-sales of homes in April fell -1.0% to a 4.89 million seasonally adjusted annual rate. Y/Y sales are down -17.5%. Inventory of unsold homes climbed to a 23-year high. Incredibly, there were mainstream (so-called) reporters who wrote, deceitfully, that the results were not bad, and better than expected.

Unfortunately, without a significant drop in the mortgage lending rate, there is not likely to be a pick-up in sales. But, the interest rates cannot go lower without US capital markets surrendering to Stagflation. So, the equity and debt markets are not going higher any time soon.

So much for last week, it was another bad one although retail sales started to pick up.

Let’s look ahead. Here is next week’s economic calendar, which is shaping up to be a not-so-quiet post-Memorial Day week:

US Economic Calendar.

US Consumer Confidence and New Home Sales data will be reported at 10am ET Tuesday. The rest of the week looks quite interesting.

US Durable Goods Orders data for April.

US Personal Income and Spending data for April. Spending will be up because of higher prices.

The inflation and other macro-economic issues that Americans are struggling with are global in scope. High inflation rates will likely result in very few central bank rate cuts in the next couple years. If the global economy suffers further contraction, the monetary authorities can do very little at this point.

Weekly International Economic Report .

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US Equity Markets Review

DJIA ino.com chart

DJIA stockcharts.com chart

I called last week “a rally week in a Bear market: 22 Dow components up and 8 down.” This week was the continuation of the Bear–with 28 Dow stocks and all 10 sectors down.

The DJIA, S&P 500 and NASDAQ Composite lost -3.33%, -3.47%, and -3.90% respectively, led by the Financials (XLF -6.13% W/W), Consumer Cyclicals (XLY -5.20%) and the Basic Materials (XLB -4.38%).

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NASDAQ Composite ino.com chart

NASDAQ Composite stockcharts.com chart

Tech, including Semi-conductors, lost steam, but was a minor loser on the week.

Here is the list of the ten highest-weighted non-financial stocks in the Nasdaq Composite. Put them in a watchlist (see Google Finance Portfolio) and watch them like a hawk. If you want, add a couple like SNDK and ADBE:
AAPL MSFT GOOG QCOM RIMM CSCO INTC ORCL GILD EBAY

Daily RSI-7 for the Nasdaq 100 Big-10

Weekly RSI-7 for the Nasdaq 100 Big-10

Monthly RSI-7 for the Nasdaq 100 Big-10

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The US equity market Sector ETF Summary

This week, there were 10 sectors down and 0 up. It wasn’t pretty as three of the past four sessions took massive losses, closing Friday afternoon looking rather fragile.

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

SPY Monthly data:

SPY Weekly data:

SPY Daily data:

The tables I now show are for eleven GICS Sector Index Funds (ETF’s), including two for Technology (XLK and SMH), for a total of ten GICS sectors. They cover the full spectrum of the US equity market.

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
XLU	40.91	-0.71	-1.71%	0.05%	2.20%	1.41%	-2.80%	3.78%	-2.41%	-2.92%
IYH	63.38	-0.58	-0.91%	-0.56%	0.14%	-1.03%	-9.59%	-3.88%	-9.65%	-12.47%
XLP	28.08	-0.14	-0.50%	-1.44%	1.01%	0.54%	-1.09%	2.11%	-1.61%	2.30%
XLE	86.26	-1.49	-1.70%	-3.02%	1.76%	4.08%	8.50%	15.17%	16.49%	27.04%
XLK	24.48	-0.05	-0.20%	-3.51%	-0.08%	2.00%	-6.28%	9.04%	-5.04%	-3.24%
SPY	137.64	-1.87	-1.34%	-3.52%	-0.91%	-1.40%	-5.03%	1.49%	-4.50%	-9.71%
IYZ	25.97	-0.31	-1.18%	-3.53%	0.58%	4.34%	-10.97%	8.03%	-8.88%	-23.39%
SMH	32.08	-0.22	-0.68%	-3.61%	1.07%	3.62%	2.30%	11.43%	0.91%	-12.40%
XLI	37.79	-0.52	-1.36%	-3.79%	-1.20%	-1.51%	-1.87%	2.38%	-1.00%	-2.05%
XLB	43.87	-0.61	-1.37%	-4.38%	0.62%	-0.18%	6.22%	6.04%	11.01%	9.05%
XLY	31.70	-0.55	-1.71%	-5.20%	-1.55%	-2.04%	-1.55%	-1.09%	-5.51%	-20.41%
XLF	24.65	-0.39	-1.56%	-6.13%	-5.16%	-8.60%	-13.08%	-9.38%	-15.78%	-34.89%

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. SPY XLE XLB XLI XLY XLP IYH XLF XLK SMH IYZ XLU . You can also add more ETF’s – up to 30 in total.

For a list of components to many ETFs, go to the AMEX.com web site, and click on ETF’s.

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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

I use XLK for the Tech sector for a total of ten (10) sectors, but also include Semiconductors (SMH) because it is my bellwether on the economy plus use SPY to see where each sector stands relative the broad market.

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

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
SU	142.22	-1.44	-1.00%	5.49%	13.91%	23.53%	28.97%	47.10%	38.95%	61.52%
IMO	59.84	-0.59	-0.98%	4.85%	3.58%	4.56%	8.96%	12.06%	13.01%	27.78%
PBR	72.38	0.36	0.50%	2.45%	12.04%	-41.31%	-39.08%	-38.95%	-28.18%	32.54%
TOT	89.37	-0.17	-0.19%	1.27%	7.74%	8.72%	7.31%	19.56%	9.72%	17.64%
CVX	100.73	-1.18	-1.16%	0.35%	3.43%	8.67%	7.78%	17.92%	16.22%	23.75%
STO	41.70	-0.53	-1.26%	0.05%	9.25%	20.17%	33.48%	39.42%	28.98%	47.25%
ECA	93.31	-1.00	-1.06%	-0.84%	8.59%	13.90%	34.05%	31.50%	37.36%	51.62%
XOM	90.70	-1.81	-1.96%	-2.13%	2.12%	-1.90%	-3.01%	4.05%	2.73%	9.29%
CEO	185.35	-12.84	-6.48%	-3.50%	2.41%	7.00%	10.71%	13.02%	6.71%	96.70%
SLB	100.03	-2.44	-2.38%	-5.01%	-4.74%	-2.64%	-0.55%	17.06%	6.29%	24.11%
RIG	152.01	-3.09	-1.99%	-5.31%	-1.07%	-1.76%	4.15%	10.18%	20.38%	56.40%
PTR	138.38	-4.28	-3.00%	-5.83%	-1.52%	-7.44%	-20.31%	-8.40%	-25.12%	6.79%

Crude Oil ($WTIC +$6.15/bbl +4.88% W/W) gained strength, closing at 132.19. But, Energy (XLE -3.02% W/W) turned bearish following a solid two weeks as it seems that traders now see that there is a limit to the high oil prices before the economy crashes.

The Canadian oil and gas sector was strong again with Suncor (SU) up +5.5%, following two weeks of large gains. Imperial Oil (IMO) lifted +4.9% after a week that had a small loss.

PTR, RIG and SLB were all down -5.0% or more.

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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)

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
TS	60.75	-0.47	-0.77%	2.70%	13.87%	16.65%	36.86%	46.77%	32.24%	27.98%
GGB	49.21	-0.61	-1.22%	0.70%	13.20%	32.53%	71.46%	59.88%	83.07%	125.32%
MT	99.84	1.03	1.04%	-1.69%	5.57%	12.23%	30.68%	27.71%	39.73%	70.46%
VCP	31.93	0.21	0.66%	-2.65%	3.60%	3.07%	7.51%	-3.80%	4.69%	46.47%
TCK	50.29	-0.01	-0.02%	-2.75%	4.71%	10.60%	38.77%	38.81%	32.90%	25.51%
DOW	40.42	-1.20	-2.88%	-5.74%	-1.96%	-1.08%	4.31%	4.31%	0.67%	-10.93%
BHP	89.50	-2.80	-3.03%	-5.79%	1.80%	5.92%	27.11%	21.22%	22.91%	72.91%
AA	40.25	-0.55	-1.35%	-6.72%	3.10%	12.68%	11.40%	10.12%	14.51%	-0.30%
RIO	40.87	-0.57	-1.37%	-6.91%	3.27%	7.79%	24.96%	14.72%	25.53%	-6.98%
RTP	505.00	-20.46	-3.89%	-9.00%	-0.03%	0.84%	20.32%	10.49%	15.81%	75.19%
PKX	130.84	-2.92	-2.18%	-9.38%	2.55%	5.64%	-10.67%	-0.33%	-14.75%	13.40%
NUE	72.32	-2.17	-2.92%	-11.88%	-7.77%	-4.51%	24.75%	9.82%	35.86%	11.67%

Basic Materials (XLB -4.38%) was a significant losing sector this week.

Tenaris (TS) enjoyed a small gain (+2.7%), but most were down with rather large losses. Nucor Steel (NUE -11.9%), Posco Steel (PKX -9.4%), Rio Tinto base metals (RTP -9.0%) and CVRD base metals (RIO -6.9%) suffered from profit-taking.

These stocks had been very strong, so traders will be looking closely at the upcoming trading patterns. Typically, a global economic slow-down is expected to produce a cyclical bear phase in these stocks.

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

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
ABB	32.76	-0.19	-0.58%	0.21%	5.20%	8.95%	14.39%	37.07%	20.66%	54.24%
FLR	186.79	-1.94	-1.03%	-2.39%	13.92%	15.68%	29.36%	41.68%	38.24%	82.18%
CAT	81.55	-0.67	-0.81%	-2.57%	-0.26%	-0.85%	15.46%	14.57%	18.83%	7.26%
TXT	60.52	-1.00	-1.63%	-3.06%	-0.57%	-1.42%	-9.41%	6.59%	-9.64%	12.81%
MMM	75.81	-0.83	-1.08%	-3.62%	-0.67%	-2.58%	-8.34%	-4.84%	-8.39%	-13.79%
BA	81.48	0.07	0.09%	-4.33%	-3.07%	-3.96%	-5.93%	-1.88%	-9.00%	-14.74%
FDX	86.83	-2.00	-2.25%	-4.53%	-3.92%	-8.08%	0.78%	-2.54%	-7.23%	-18.13%
HON	58.76	-0.61	-1.03%	-4.93%	-1.39%	-2.86%	-1.90%	3.93%	7.48%	3.93%
GE	30.43	-0.58	-1.87%	-5.29%	-5.70%	-8.70%	-17.22%	-9.30%	-19.22%	-19.07%
UPS	67.02	-2.33	-3.36%	-5.30%	-4.65%	-7.84%	-3.09%	-6.77%	-5.50%	-4.23%
UTX	70.01	-1.83	-2.55%	-5.34%	-4.27%	-3.67%	-6.91%	-3.07%	-4.70%	1.68%
ERJ	37.80	-0.33	-0.87%	-10.19%	-7.10%	-9.48%	-16.24%	-16.96%	-14.58%	-18.99%

The Industrials (XLI -3.79% W/W) were almost as weak as the Basic Materials.

The winner on my Industrials monitor was ABB of Switzerland, up just +0.2%, following a week where it was up +5.0%. There were many losers led by Brazil’s airplane maker Embraer (ERJ -10.2%), United Technologies (UTX -5.3%), UPS (UPS -5.3%), and General Electric (GE -5.3%).

It’s not often that a GE loses over -5% in a week, so take note of its trading next week. GE is known as the General.

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

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
TM	98.89	-1.59	-1.58%	-2.93%	-2.39%	-3.11%	-7.11%	-10.69%	-9.61%	-17.85%
EBAY	30.18	-0.37	-1.21%	-3.18%	0.60%	-3.58%	-7.11%	8.91%	-5.51%	-8.21%
NKE	64.77	-0.24	-0.37%	-4.09%	-0.15%	-5.78%	2.35%	6.90%	1.60%	18.15%
WHR	71.77	-0.62	-0.86%	-4.14%	-0.91%	-6.06%	-10.15%	-19.11%	-7.85%	-36.22%
DIS	33.23	-0.38	-1.13%	-4.81%	-3.12%	2.69%	4.37%	2.03%	4.37%	-8.91%
TGT	52.04	-0.97	-1.83%	-5.17%	-0.38%	-3.59%	5.11%	-0.06%	-8.97%	-11.19%
BDK	63.05	-0.83	-1.30%	-6.61%	-5.64%	-6.70%	-9.84%	-5.71%	-23.21%	-31.62%
CCL	36.99	-0.96	-2.53%	-6.71%	-6.87%	-6.24%	-15.28%	-11.61%	-13.43%	-25.62%
BBBY	30.85	-0.61	-1.94%	-8.67%	-4.16%	-7.72%	8.78%	6.71%	0.75%	-24.41%
GOL	14.65	-0.09	-0.61%	-11.27%	-7.80%	-2.33%	-38.93%	-17.14%	-43.70%	-52.25%
JCP	39.93	-0.58	-1.43%	-11.29%	-6.94%	-7.57%	-4.13%	-18.18%	-3.32%	-49.32%
BC	14.67	-0.37	-2.46%	-12.31%	-9.50%	-10.28%	-13.30%	-11.04%	-23.83%	-57.50%

Consumer Cyclicals (XLY -5.20% W/W) plunged after prices at the fuel pump zoomed. The loss on Friday was -1.71%.

The leader-board had Toyota (TM -2.9%) at the top, but a loss is a loss. The losers were Brunswick (BC -12.3%) with a boat manufacturing business that has to just hate $130 crude oil (with $4/gallon fuel prices), JC Penny (JCP -11.3%), and Brazil’s GOL airlines (GOL -11.3%).

In this sector, it was a year ago or more that I said, “no tickee” by consumers would lead to big problems here. This sector has made nobody any real money for 2, 4, or 52 weeks—unless you were short.

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

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
BUD	56.61	4.03	7.66%	9.43%	11.15%	20.06%	9.65%	18.41%	12.79%	10.24%
KO	58.63	0.36	0.62%	2.73%	4.42%	-1.18%	-4.03%	0.64%	-5.89%	14.22%
PEP	68.26	-0.12	-0.18%	0.57%	1.11%	0.95%	-9.34%	-4.37%	-9.60%	-0.63%
SBUX	16.95	-0.14	-0.82%	-0.59%	6.87%	6.87%	-12.22%	-7.02%	-26.53%	-41.33%
PG	65.27	-0.35	-0.53%	-2.22%	0.09%	-1.92%	-9.74%	-1.42%	-10.42%	3.44%
WMT	55.75	-0.30	-0.54%	-2.26%	-2.50%	-3.30%	18.87%	11.57%	21.91%	20.33%
DEO	78.46	0.06	0.08%	-3.14%	-3.55%	-4.24%	-7.76%	-4.99%	-12.16%	-8.12%
WAG	35.09	-0.59	-1.65%	-3.52%	0.29%	-1.13%	-6.03%	-6.20%	-11.68%	-21.48%
KR	26.96	-0.25	-0.92%	-3.58%	2.51%	2.16%	5.03%	4.74%	-3.71%	-8.67%
WFMI	27.62	-0.38	-1.36%	-4.96%	-15.74%	-11.45%	-30.53%	-24.86%	-32.22%	-31.58%
PDA	58.46	-0.49	-0.83%	-5.50%	4.62%	10.89%	21.46%	13.89%	27.36%	68.86%
ABV	72.27	-1.40	-1.90%	-7.99%	-2.47%	-1.87%	-0.29%	-10.10%	4.60%	8.33%

Consumer Staples (XLP -1.44% W/W) was not so defensive.

Budweiser (BUD) was up +9.4% on the hopes that a foreign beer company will buy it out. Isn’t that just great America? Coca Cola (KO) lifted +2.7%.

Brazil’s InBev (ABV) just might buy BUD, so the stock sank -8.0%.

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

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
UNH	34.75	-0.55	-1.56%	7.52%	5.49%	2.24%	-38.68%	-26.63%	-35.73%	-35.56%
MDT	50.13	-0.61	-1.20%	6.70%	4.90%	1.44%	1.27%	3.28%	3.75%	-5.38%
AET	45.61	-1.02	-2.19%	4.71%	5.46%	3.87%	-19.47%	-9.02%	-15.76%	-12.12%
WLP	53.94	-1.51	-2.72%	4.68%	2.29%	5.62%	-38.00%	-27.04%	-34.03%	-36.14%
NVS	53.03	0.23	0.44%	3.25%	4.16%	4.80%	-2.82%	5.36%	-5.27%	-5.05%
AMGN	42.38	-0.39	-0.91%	0.83%	0.78%	0.31%	-9.06%	-8.72%	-21.17%	-22.58%
GSK	44.49	-0.36	-0.80%	0.07%	1.34%	-1.40%	-11.32%	0.93%	-12.40%	-16.56%
BMY	21.69	-0.26	-1.18%	-1.14%	-0.09%	-2.08%	-16.99%	-3.73%	-22.76%	-27.70%
DNA	68.53	-0.36	-0.52%	-2.37%	0.00%	-4.78%	1.68%	-4.27%	-8.41%	-11.76%
PFE	19.55	-0.23	-1.19%	-2.42%	-1.23%	-4.33%	-14.69%	-13.13%	-14.95%	-28.51%
JNJ	64.92	-0.49	-0.75%	-2.64%	-2.45%	-3.55%	-1.50%	2.75%	-2.93%	1.74%
NVO	66.17	-0.37	-0.56%	-4.07%	-1.96%	-1.31%	3.71%	-3.29%	-47.72%	-36.71%

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

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
BBD	22.65	-0.07	-0.31%	-3.21%	-0.18%	2.30%	-25.57%	-23.04%	-21.63%	-10.19%
HBC	84.10	-0.54	-0.64%	-3.47%	0.04%	-1.96%	2.01%	11.79%	-0.76%	-9.30%
DB	114.44	-1.77	-1.52%	-3.71%	-2.38%	-4.91%	-11.33%	2.01%	-7.97%	-27.45%
CS	52.29	0.09	0.17%	-3.74%	-3.47%	-4.77%	-12.38%	7.90%	-8.54%	-30.91%
UBS	29.30	-0.61	-2.04%	-4.78%	-5.61%	-18.61%	-36.01%	-12.93%	-35.23%	-54.23%
GS	172.64	-4.56	-2.57%	-7.75%	-8.21%	-10.08%	-16.84%	-2.85%	-20.25%	-24.46%
C	21.12	-0.60	-2.76%	-8.65%	-10.62%	-20.60%	-26.97%	-15.92%	-33.38%	-61.61%
JPM	42.32	-0.73	-1.70%	-9.05%	-9.13%	-11.45%	0.36%	-3.66%	0.88%	-18.60%
MER	43.36	-1.14	-2.56%	-11.24%	-10.51%	-12.65%	-17.82%	-18.27%	-19.01%	-53.78%
IBN	39.42	-1.49	-3.64%	-11.34%	-7.20%	-16.48%	-36.57%	-26.82%	-32.91%	-15.26%
MS	41.83	-1.12	-2.61%	-11.40%	-8.99%	-17.41%	-17.90%	-5.34%	-16.16%	-51.22%
LEH	36.11	-2.39	-6.21%	-17.25%	-17.06%	-22.96%	-41.94%	-33.40%	-40.67%	-51.29%

This is the sector, Financials (XLF), which is the market’s problem. After losing -6.1% two weeks ago, last week they gained +1.04% W/W, but that was only the 9th best performance out of 10, and there was also a loss of -0.91% on Friday, which was a strong market day. That was a warning. This week, the loss was -6.13%.

Lehman Brothers (LEH) plunged -17.3% this week, -23.0% over 4 weeks, and -51.3% over the past year.

Other losers were ICICI (IBN) of India down -11.3%, Merrill Lynch (MER -11.2%) and Morgan Stanley (MS -11.4%).

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

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

SMH Monthly data:

SMH Weekly data:

SMH Daily data:

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

XLK Monthly data:

XLK Weekly data:

XLK 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
QCOM	47.76	1.89	4.12%	1.83%	9.24%	10.45%	24.41%	9.92%	17.84%	6.51%
SAP	52.52	-0.21	-0.40%	1.76%	7.80%	1.29%	3.53%	9.30%	1.78%	9.94%
ORCL	21.98	-0.33	-1.48%	1.38%	4.67%	1.81%	-2.27%	16.30%	8.22%	14.72%
ADBE	41.25	-0.15	-0.36%	-2.39%	3.41%	11.82%	-1.10%	17.55%	-1.57%	-4.58%
AAPL	181.17	4.12	2.33%	-3.44%	-1.24%	6.74%	-7.02%	51.66%	5.61%	60.48%
CTSH	30.40	-0.60	-1.94%	-3.65%	2.25%	-2.72%	-5.68%	-5.44%	-0.20%	-20.17%
ADSK	38.75	-0.67	-1.70%	-4.88%	-0.90%	-1.60%	-19.67%	0.39%	-15.37%	-14.85%
CSCO	25.10	-0.48	-1.88%	-5.32%	-1.53%	-1.95%	-5.43%	6.36%	-12.51%	-3.35%
RIMM	131.64	1.15	0.88%	-6.21%	-0.85%	9.66%	15.77%	21.95%	15.63%	153.79%
INFY	43.12	-1.09	-2.47%	-6.28%	0.49%	0.00%	-2.95%	3.90%	10.28%	-12.78%
INTC	23.41	-0.47	-1.97%	-6.36%	0.17%	3.77%	-7.65%	17.93%	-6.62%	3.26%
SNDK	28.26	-0.49	-1.70%	-12.89%	-3.15%	5.29%	-14.80%	10.18%	-21.74%	-34.58%

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Sector 50 (telecom: IYZ, VOX and IXP)

Tech (XLK -3.51%) including Semi-conductors (SMH -3.61%) were weak.

The worst were INFY (-6.3%) of India and RIMM (-6.2%) of Canada.

Qualcomm (QCOM) had a good week (+1.8%) after a superb Friday (+4.1%) following announcement of the China telecom industry shake-up that will focus on Qualcomm technology. A week earlier the QCOM stock was up over +6% so I figure that “breaking news” was in the market before the announcement.

The systems and applications software giants Oracle (ORCL) and SAP (SAP) were up +1.8% W/W.

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

IYZ Monthly data:

IYZ Weekly data:

IYZ Daily data:

Telecom (IYZ -3.53% W/W) lost about par for the week.

VZ -4.36% W/W (-1.04% on Friday) and T -3.84% W/W and -1.66% on Friday were both losers.

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

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

XLU Monthly data:

XLU Weekly data:

XLU Daily data:

Utilities (XLU +0.05% W/W) broke even on the week, despite a loss of -1.71% on Friday.

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Bonds & Yields Review

Table 10: US Treasury Yields

US Treasury Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
3 Month	1.79	1.80	1.84	1.17
6 Month	1.87	1.87	1.91	1.57
2 Year	2.40	2.52	2.47	2.19
3 Year	2.40	2.50	N/A	2.13
5 Year	3.13	3.22	3.12	2.95
10 Year	3.84	3.91	3.85	3.73
30 Year	4.57	4.62	4.58	4.49

Municipal Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
2yr AA	2.36	2.28	2.39	2.40
2yr AAA	2.33	2.22	2.40	2.31
2yr A	2.54	2.54	2.81	2.75
5yr AAA	2.93	2.79	2.99	3.00
5yr AA	2.97	2.89	2.89	3.05
5yr A	3.29	3.35	3.30	3.42
10yr AAA	3.63	3.53	3.65	3.64
10yr AA	3.54	3.51	3.62	3.55
10yr A	3.65	3.60	3.65	3.71
20yr AAA	4.39	4.34	4.38	4.36
20yr AA	4.43	4.44	4.46	4.78
20yr A	4.36	4.36	4.37	4.51

Corporate Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
2yr AA	4.03	4.15	4.02	4.12
2yr A	3.87	4.04	3.81	3.79
5yr AAA	3.98	4.27	4.14	4.43
5yr AA	4.84	4.91	4.76	4.74
5yr A	4.91	5.09	4.98	5.22
10yr AAA	5.71	5.29	5.02	5.23
10yr AA	5.97	5.94	6.00	5.83
10yr A	5.60	5.56	5.48	5.47
20yr AAA	6.11	6.15	6.09	6.47
20yr AA	5.98	6.03	5.97	6.01
20yr A	6.36	6.41	6.35	6.34

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The yield tables are correct this weekend, so I’ll discuss the bond market.

Basically, the yields have lifted in the past two weeks, which has knocked down bond prices, but not so much that traders want to sell blindly. That means my “(paired) trade of the generation” is not yet ready, although it could be that large bond holders have been clearing off inventory over the past several months.

Stagflation hurts bond prices like it hurts equity prices. Inflation requires higher interest rates to snuff out the speculator’s desire to borrow money in order to chase rising prices. Higher interest rates of course knock down the price of bonds.

Importantly, just so you understand where I am coming from; higher gold prices can go hand in glove with higher interest rates, so the paired trade is to sell bonds and buy gold—at the appropriate time. Normally, there is not any Noon Day Gun fired that alerts traders to put the trade on, and often the traders will ease out of one and into the other. In fact, that has been happening with both bonds and gold. What you need to appreciate, however, is that trading of this kind is sophisticated—the world’s best traders are keen to go for the big winner, and they edge into the trade. Hence, when I say I’m going to alert you to the “trade of the generation,” I’m probably going to be a little late in order to satisfy myself that you are in the game for the long haul.

When it comes to me, I’m often early; but then, I don’t have readers watching, ready to denounce my words as those coming from a crackpot, so I usually err on the late side.

As for you, depending on your experience and skill, you may have put on trades earlier than what I’m prepared to say here. Then again, I’m not writing for ego or financial reasons, and I’m just trying to keep you on the right side of trend.

Does that make sense? I’m into my third or fourth G&T and ready to leave for Miriam’s house-warming party out near Love Beach. LOL.

I will continue tomorrow, hung over or not because we leave for fishing between 10am and 11, and you can see I’m still early on in this WIR.

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

Interest rates and bond yields.

Interactive Daily data charts:

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Interactive Chart of Interest rates and bond yields.

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The TLT lost -0.04% W/W, but that was helped by Friday’s gain of +0.44% as the Energy stocks sold off.

The TIPS gained +0.39% on Friday and +0.71% on the week.

When the TIPS out gain the TLT, you should understand that traders are thinking inflation. Check the macro-economic data for a sense of that.

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
NLY	17.65	0.06	0.34%	1.79%	6.52%	3.28%	-2.49%	-15.63%	5.00%	13.94%
TIP	108.49	0.42	0.39%	0.71%	0.61%	1.95%	1.73%	0.79%	1.69%	9.01%
IEF	88.52	0.40	0.45%	0.08%	-0.57%	-0.06%	1.02%	-0.41%	1.85%	8.08%
SHY	83.06	0.16	0.19%	0.06%	-0.26%	-0.08%	0.87%	-0.66%	0.80%	3.75%
AGG	101.88	0.33	0.32%	-0.03%	-0.32%	0.47%	0.23%	0.26%	0.62%	2.53%
TLT	91.77	0.40	0.44%	-0.08%	-0.79%	-0.05%	-2.77%	-0.27%	-2.09%	6.20%
DRE	25.50	-0.11	-0.43%	-4.21%	-0.31%	0.00%	-0.47%	8.97%	-3.26%	-35.91%
FRE	25.73	-0.56	-2.13%	-4.60%	2.31%	-7.91%	-21.41%	-3.31%	-2.80%	-62.10%
AVB	98.49	-1.17	-1.17%	-5.47%	-0.93%	-6.09%	7.82%	2.87%	-0.85%	-16.80%
EQR	40.97	-0.77	-1.84%	-7.03%	-1.63%	-6.46%	12.46%	2.20%	10.97%	-12.21%
FNM	27.59	-0.31	-1.11%	-7.69%	-0.79%	-10.80%	-26.35%	-3.93%	-14.32%	-57.96%
CFC	4.5400	-0.1500	-3.20%	-8.10%	-4.62%	-22.26%	-49.56%	-34.68%	-52.95%	-88.91%

The big three of the mortgage suppliers, CFC, FNM and FRE, were very weak, down -8.1%, -7.7%, and -4.6% respectively. The prior Friday was soft too, so it's been a tough six days for the mortgage lenders.

A week ago there had been large gains, but that was due to the plans of Congress to permit smaller down-payments, which seems to be the problem the housing market had in the past couple years.

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Consumer Finance -USA -- Interactive Weekly Data Charts

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Consumer Finance -USA -- Interactive Daily Data Charts

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Commodities Review

The $CRB gained +1.09% W/W to close at 431.09, including Friday’s gain of +0.54%. So that’s a gain in just six sessions of +2.3%. Inflation is on the minds of traders.

Trying to recover from last evening is going to be a harder chore than anticipated. Whew!

Anyway, as I pointed out two weeks ago, “The game by smart insiders may be to crank the commodity group first and then sell it off slowly to switch into the other stocks in trying to kick-start the market.”

That process may have begun, triggered by $135 Crude Oil.

$CRB Index

Open Futures Contracts

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Interactive Chart of Weekly CRB Commodities Index:

Interactive Chart of Daily CRB Commodities Index:

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Oil Review

$WTIC (US Light Sweet Crude called West Texas Intermediate) gained +$6.15/bbl to move this week +4.88% from 126.04 to 132.19. There was a high of 135.09 this week, surpassing the prior week’s high of 127.42 on the Friday.

“How many remember $51/bbl in January 2007?”

The 50d MA for $WTIC is now at 114.75 (amazing!), and the 200d MA is 95.31.

When the price of oil craters—and it will!—I wonder how many hedge funds get taken down with it?

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

Interactive Chart of Weekly Crude Oil:

Interactive Chart of Daily Crude Oil:

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Gold & Precious Metals Review

$GOLD gained +25.90/oz this week, after gains of +$14.10/oz and +$27.80/oz the prior two weeks. The close on Friday was 925.80.

The 50-day MA for $GOLD is now 913.57, and the 200d MA is 839.95. So the current price is above the 50-day MA, and well above the 200d MA. The trend is clearly up. But here is where I think that the gold-bugs are going to get trapped. I’m watching the $USD for timing of the next trade.

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Spot gold chart for the week

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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Spot silver chart for the week

Interactive daily data

This week, $SILVER gained +$1.33 (+7.84%) to close at 18.19, which I think was caused by speculation. Most of the newsletter writers joined the precious metals bandwagon this week, and we know that the Silver Crazies lead that pack.

But $SILVER was $21.44 not long ago, and I’m thinking that will be the long-term cycle high. Obviously, my thinking is against the trend, and I acknowledge I may be out of sync.

For $SILVER, the 50d MA is now 17.59, and the 200d MA is 15.65. The current price is above the 50-day MA, and well above the 200d MA.

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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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This week $PLAT gained +45.60, which follows gains of +28.30/oz and +188.10/oz. The close was 2173.70, with an intra-week high of 2214.2/oz, which is close to the record high of 2299.

The 50-day MA is 2022.75 and the 200-day MA is 1668.80.

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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$PALLADIUM gained +4.05/oz, which follows gains of +9.95/0z and +$23.40/oz in the prior two weeks. The close on Friday was 461.25, up +0.89%.

The 50-day MA is now 454.89 and the 200-day MA is 405.49. Note that the current price (461.25) is now well above the 200-day MA, and also above the 50-day MA.

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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This week, $COPPER lost -9.05 (-2.37%) to close at 373.60. In the prior week, the contracts gained +11.00.

The 50-day MA for $COPPER is now 382.41 (the current price is lower) and the 200-day MA is 348.56.

“I still think the 50d MA is a battleground for traders.”

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
EGO	8.200	0.040	0.49%	7.19%	10.22%	24.05%	32.26%	35.54%	35.31%	42.11%
AUY	16.05	0.12	0.75%	6.79%	8.52%	19.87%	15.72%	-5.37%	15.14%	20.68%
LIHR	31.86	0.13	0.41%	4.70%	8.33%	12.34%	-3.95%	-11.40%	-9.72%	20.91%
ABX	42.07	-0.49	-1.15%	4.65%	6.80%	6.05%	-8.58%	-16.13%	-2.39%	41.36%
AEM	72.03	0.63	0.88%	4.01%	8.64%	15.53%	27.44%	10.39%	37.94%	103.13%
HMY	12.86	-0.23	-1.76%	2.47%	4.21%	8.16%	19.63%	5.67%	24.73%	-17.25%
GG	42.10	0.14	0.33%	1.99%	6.66%	15.06%	14.90%	3.90%	21.47%	80.53%
NEM	48.74	-0.25	-0.51%	-0.29%	6.58%	8.96%	-6.97%	-2.62%	-6.43%	23.77%
KGC	20.56	-0.27	-1.30%	-0.68%	2.49%	5.65%	2.03%	-11.07%	10.42%	55.29%
GFI	14.01	-0.16	-1.13%	-1.27%	1.74%	1.08%	-9.03%	-5.91%	-20.49%	-20.53%
AU	39.29	0.34	0.87%	-1.55%	-1.18%	9.20%	-14.33%	8.96%	-14.06%	-8.69%
BVN	65.02	-1.24	-1.87%	-2.05%	0.85%	2.23%	6.80%	-10.65%	18.69%	96.91%

Despite a significant rally in precious metals the past few weeks, the $XAU Goldminers index lifted only +0.23 or +0.12%, closing at 188.10.

The better performers included EGO +7.2%, AUY +6.8% and ABX +4.7%, but many were losers this week.

I note that the $USD dropped sharply -1.19% and yet the goldminers were not treated with any bullish enthusiasm. Clearly, inflation is hitting their cost structures too.

The 50d MA for $XAU is 181.94, and the 200d MA is 175.03.

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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

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

The $USD lost -1.19% to 71.96 this week for a third consecutive losing week.

Despite their own issues with the economy, other central banks are standing pat on rates for the past few weeks, and traders doubt the resolve of the Fed to follow suit. So the $USD has weakened.

The next Fed meeting or perhaps an important speech by Bernanke could change all that.

Interactive Chart of Weekly U.S. Dollar Index:

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

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The Euro ($XEU) gained +1.11% W/W to close at 1.5767.

Despite a three weeks of gains, I still think it will go down.

But, traders go with the trend, and the past six days has resulted in a gain for the Euro of over +2%.

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 Pound lifted (+1.16% W/W) and with a gain of +0.55% on the prior Friday, the Pound has jumped +1.75% in six sessions. The close on Friday was 1.9802.

The 50-day MA and 200-day MA are at 1.9786 and 2.0047 respectively.

Weekly British Pound Index:

Daily British Pound Index:

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Weekly Japanese Yen Index:

The Japanese Yen ($XJY) gained +0.64% W/W to 96.77. But the first four days was a loser as the gain on Friday was +0.75%. Friday was an important sell-off in equities around the world, leading to a reversal of the Carry Trade.

So, watch the Yen rally if, as and when North American and European equity prices sink.

The Yen’s 50-day MA is 97.64 and the 200-day MA is 91.74.

Daily Japanese Yen Index:

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The Loonie (Cdn Dollar) gained +0.54% this week to close Friday at 99.96.

The 50-day MA and 200-day MA is at 99.08 and 99.48 respectively, which means the current price (99.96) is now above both.

Weekly Canadian Dollar Index:

Daily Canadian Dollar Index:

I should be tracking the China Yuan (CNY). http://stockcharts.com/charts/gallery.html?cny

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International Equity Markets Review

International equities were weak this week.

UK FTSE from 6204.7 to 6304.30 to 6087.30
German DAX from 7003.17 to 7156.55 to 6944.05
Aussie All-Ords from 5844.4 to 6006.1 to 5866.2
Shanghai Composite from 3613.5 to 3624.23 to 3473.09
HK Heng Seng from 25063 to 25619 to 24714
India’s BSE 30 from 17435 to 16650
Japan’s Nikkei 225 from 14219 to 14012.

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I added 16 country index charts from StockCharts.com (with their formal approval btw as long as I don’t publish too many) because I think it is important to be watching these markets move through a trend juncture together, and in relation to currency and commodity strength or weakness.

I also made some additions to the country-based ETF tables as I intend to focus more on ETF’s in 2008. In time, I will also set up tables and track the domestic market prices.

The world is now a very small one in capital markets and international business. No longer are corporations just American, British, French, German, Italian, Canadian or Japanese. Most do business internationally. We need to observe their businesses and capital market prices on a global basis.

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

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

Brazilian Bovespa stockcharts.com chart

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

Toronto 300 stockcharts.com chart

Toronto CDNX stockcharts.com chart

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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.

FTSE 100 stockcharts.com chart

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Here is the latest session data for the German DAX.

DAX stockcharts.com chart

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

CAC 40 stockcharts.com chart

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

Italian Milan Index stockcharts.com chart

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

Swiss Market Index stockcharts.com chart

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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.

Tokyo Nikkei 225 Index stockcharts.com chart

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Here is the latest chart for the Singapore index .

Singapore Straits Times Index stockcharts.com chart

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Here is the latest chart for the Shanghai Composite index .

Shanghai Composite Index stockcharts.com chart

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

Hong Kong Hang Seng stockcharts.com chart

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

Mumbai BSE 30 Sensex Index stockcharts.com chart

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

Sydney All Ordinaries Index stockcharts.com chart

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Russia (RTS) stockcharts.com chart

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Table 13: International equities via an ETF perspective (in $USD)

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
EWC	35.13	-0.28	-0.79%	-0.54%	3.54%	7.60%	8.43%	12.70%	10.30%	18.56%
EWQ	37.17	-0.46	-1.22%	-1.61%	2.26%	1.39%	-2.03%	9.91%	-3.43%	-4.03%
EWZ	97.45	-0.03	-0.03%	-2.10%	4.92%	11.19%	20.38%	15.68%	25.84%	67.67%
EWJ	13.32	-0.11	-0.82%	-2.20%	1.45%	1.68%	0.68%	6.65%	-2.35%	-7.56%
EWG	33.34	-0.51	-1.51%	-2.54%	1.09%	1.46%	-5.79%	7.58%	-3.00%	3.16%
EWU	22.91	-0.30	-1.29%	-2.76%	-0.35%	-0.48%	-4.06%	4.37%	-8.40%	-9.80%
EWS	13.31	-0.21	-1.55%	-2.85%	-1.70%	-2.63%	-1.33%	5.47%	-2.78%	-2.85%
EWA	29.13	-0.51	-1.72%	-3.92%	1.18%	4.30%	1.22%	8.57%	-3.51%	4.22%
TRF	65.71	-0.01	-0.02%	-4.39%	5.54%	12.11%	-10.59%	4.68%	-0.89%	-4.11%
EWH	18.86	-0.16	-0.84%	-4.75%	-1.82%	-2.93%	-13.45%	2.95%	-9.41%	12.33%
IFN	46.73	0.21	0.45%	-5.25%	-1.10%	-6.33%	-24.51%	-6.63%	-15.42%	7.35%

It was a tough week all over the world for the Bulls.

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Japanese equity market ETF: EWJ

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

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

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 prior week was a clear-cut rally; but this week was just as obvious a sell-off. It is not often the DJIA drops -507 points. Three of the past four days were extreme.

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
KO	58.63	0.36	0.62%	2.73%	4.42%	-1.18%	-4.03%	0.64%	-5.89%	14.22%
CVX	100.73	-1.18	-1.16%	0.35%	3.43%	8.67%	7.78%	17.92%	16.22%	23.75%
XOM	90.70	-1.81	-1.96%	-2.13%	2.12%	-1.90%	-3.01%	4.05%	2.73%	9.29%
PG	65.27	-0.35	-0.53%	-2.22%	0.09%	-1.92%	-9.74%	-1.42%	-10.42%	3.44%
WMT	55.75	-0.30	-0.54%	-2.26%	-2.50%	-3.30%	18.87%	11.57%	21.91%	20.33%
PFE	19.55	-0.23	-1.19%	-2.42%	-1.23%	-4.33%	-14.69%	-13.13%	-14.95%	-28.51%
CAT	81.55	-0.67	-0.81%	-2.57%	-0.26%	-0.85%	15.46%	14.57%	18.83%	7.26%
JNJ	64.92	-0.49	-0.75%	-2.64%	-2.45%	-3.55%	-1.50%	2.75%	-2.93%	1.74%
IBM	124.20	-0.50	-0.40%	-2.83%	0.11%	0.91%	18.64%	14.93%	19.37%	17.64%
MRK	38.74	-0.29	-0.74%	-3.15%	-0.64%	-4.86%	-32.47%	-15.98%	-32.81%	-28.72%
MMM	75.81	-0.83	-1.08%	-3.62%	-0.67%	-2.58%	-8.34%	-4.84%	-8.39%	-13.79%
T	38.53	-0.65	-1.66%	-3.84%	-0.16%	-0.13%	-6.02%	10.15%	2.39%	-4.65%
DD	47.62	-0.81	-1.67%	-4.05%	-1.69%	-4.53%	8.87%	3.61%	6.56%	-8.62%
BA	81.48	0.07	0.09%	-4.33%	-3.07%	-3.96%	-5.93%	-1.88%	-9.00%	-14.74%
VZ	37.08	-0.39	-1.04%	-4.36%	-2.19%	0.11%	-14.19%	2.43%	-13.04%	-13.10%
MCD	57.73	-0.80	-1.37%	-4.63%	-2.55%	-3.25%	-0.64%	3.66%	0.02%	11.94%
DIS	33.23	-0.38	-1.13%	-4.81%	-3.12%	2.69%	4.37%	2.03%	4.37%	-8.91%
HPQ	44.96	0.06	0.13%	-4.93%	-8.49%	-5.25%	-9.74%	-5.15%	-8.56%	-1.47%
GE	30.43	-0.58	-1.87%	-5.29%	-5.70%	-8.70%	-17.22%	-9.30%	-19.22%	-19.07%
UTX	70.01	-1.83	-2.55%	-5.34%	-4.27%	-3.67%	-6.91%	-3.07%	-4.70%	1.68%
AIG	36.95	-0.86	-2.27%	-6.08%	-8.27%	-22.26%	-34.37%	-24.41%	-30.32%	-48.62%
BAC	33.93	-0.80	-2.30%	-6.19%	-7.42%	-11.41%	-16.35%	-20.35%	-21.37%	-33.92%
INTC	23.41	-0.47	-1.97%	-6.36%	0.17%	3.77%	-7.65%	17.93%	-6.62%	3.26%
MSFT	28.05	-0.42	-1.48%	-6.47%	-4.56%	-5.97%	-20.36%	1.19%	-17.77%	-8.27%
AXP	45.45	-0.91	-1.96%	-6.64%	-7.17%	-4.86%	-10.95%	0.87%	-18.30%	-28.97%
AA	40.25	-0.55	-1.35%	-6.72%	3.10%	12.68%	11.40%	10.12%	14.51%	-0.30%
HD	26.77	-0.14	-0.52%	-8.01%	-4.32%	-10.11%	2.53%	-3.60%	-7.53%	-30.97%
C	21.12	-0.60	-2.76%	-8.65%	-10.62%	-20.60%	-26.97%	-15.92%	-33.38%	-61.61%
JPM	42.32	-0.73	-1.70%	-9.05%	-9.13%	-11.45%	0.36%	-3.66%	0.88%	-18.60%
GM	17.60	-0.83	-4.50%	-14.89%	-13.26%	-17.68%	-27.90%	-26.91%	-35.20%	-44.00%

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

This week, Value Line reported on six! Dow 30 companies: AIG (AIG), American Express (AXP), Bank of America (BAC), Citigroup (C), JP Morgan (JPM) and Microsoft (MSFT).

There are no compelling arguments for any of these six to be included in the Cara 100, although Microsoft would be close.

Regardless of what the Value Line analysts have to say, the financials still have a long way to drop in price before true value can be found. Presently, the management of most banks are not coming clean as to their losses in asset-backed paper. At some point their auditors will refuse to let them carry on. These assets are being reflected on the financial summaries as “Marketable Securities” but not even their closest colleagues will bid for them at anywhere close to the values shown on the financials.

It’s time for the bankers to clean up their act. If they wish to sell credibility, and goodwill is basically most of the value of their franchise since their main revenue producers are people who can easily get jobs in other banks, then they ought to admit to the shareholders exactly where they stand.

For these reasons, I have no interest in reviewing the banks and insurance companies. But if there was a single one that I might have interest in that one would be AIG.

Microsoft is a different story. It is a financially strong company with excellent performance metrics. It is also an interesting case study in the possible merging of different management cultures. I for one believe that a hostile takeover of creative people is a mistake, and the deal for Yahoo (YHOO), if ever done, could be a disaster. On the other hand, I think there is only a part of Yahoo that Microsoft is interested in, and if that part was retained, and left to its own management team for several years, a deal could work.

At the end of the day, however, I think MSFT has a lot of downside here, and I’m not too interested in reviewing it.

Next week in the Value Line studies is General Motors (GM), which ought to be fun. Trying to sell cars these days is akin to selling condos on Miami’s Brickell Avenue. Anything’s possible, but there have been easier times.

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(AIG: Value Line Report May 23: next one is due Aug. 22)

(AXP: Value Line Report May 23: next one is due Aug. 22)

(BAC: Value Line Report May 23: next one is due Aug. 22)

(C: Value Line Report May 23: next one is due Aug. 22)

(JPM: Value Line Report May 23: next one is due Aug. 22)

(MSFT: Value Line Report May 23: next one is due Aug. 22)

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The Dow 30 Company links in chronological order of next reports

General Motors [GICS 25, Dow 30]
(GM: Yahoo Finance file)
(GM: StockChart chart)
(GM: Billcara2 chart)
(GM: ADVFN Financial Data)
(GM: Value Line Report Feb. 29: next one is due May 30)

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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 Feb. 29: next one is due May 30)

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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 Mar. 7: next one is due Jun. 6)

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Chevron Corp [GICS 10, Dow 30]
(CVX: Yahoo Finance file)
(CVX: StockChart chart)
(CVX: Billcara2 chart)
(CVX: ADVFN Financial Data)
(CVX: Value Line Report Mar. 14: next one is due Jun. 13)

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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 Mar. 14: next one is due Jun. 13)

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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 Mar. 21: next one is due Jun. 20)

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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 Mar. 28: next one is due Jun. 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 Mar. 28: next one is due Jun. 27)

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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 Jan. 4: next one is due Apr. 4)

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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 Jan. 4: next one is due Apr. 4)

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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 Apr. 11: next one is due Jul. 11)

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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 Apr. 11: next one is due Jul. 11)

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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 Apr. 11: next one is due Jul. 11)

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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 Apr. 11: next one is due Jul. 11)

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Alcoa [GICS 15, Dow 30]
(AA: Yahoo Finance file)
(AA: StockChart chart)
(AA: Billcara2 chart)
(AA: ADVFN Financial Data)
(AA: Value Line Report Apr. 18: next one is due Jul. 18)

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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. 18: next one is due Jul. 18)

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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. 18: next one is due Jul. 18)

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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. 18: next one is due Jul. 18)

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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. 25: next one is due Jul. 25)

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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 Apr. 25: next one is due Jul. 25)

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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 2: next one is due Aug. 1)

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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 9: next one is due Aug. 8)

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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 16: next one is due Aug. 15)

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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 16: next one is due Aug. 15)

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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 23: next one is due Aug. 22)

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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 23: next one is due Aug. 22)

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Bank of America [GICS 40, Dow 30]
(BAC: Yahoo Finance file)
(BAC: StockChart chart)
(BAC: Billcara2 chart)
(BAC: ADVFN Financial Data)
(BAC: Value Line Report May 23: next one is due Aug. 22)

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Citigroup [GICS 40, Dow 30]
(C: Yahoo Finance file)
(C: StockChart chart)
(C: Billcara2 chart)
(C: ADVFN Financial Data)
(C: Value Line Report May 23: next one is due Aug. 22)

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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 23: next one is due Aug. 22)

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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 23: next one is due Aug. 22)

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Wrap up:

I am quite certain that my strongest memory of childhood is standing in a primary school auditorium during the playing of Taps. You see, I was born in 1942 and I did not see my father until I was almost four. I did not understand this. I did not know how lucky I would be when my father returned from the war, a stronger person for it. For too many children, their fathers never did return.

The ultimate sacrifice has been paid by so many of our ancestors, family members, friends and neighbors that, as beneficiaries, we must not forget their deeds.

Day is done, gone the sun, From the hills, from the lake, From the skies. All is well, safely rest, God is nigh. Go to sleep, peaceful sleep, May the soldier or sailor, God keep. On the land or the deep, Safe in sleep. Love, good night, Must thou go, When the day, And the night Need thee so? All is well. Speedeth all To their rest. Fades the light; And afar Goeth day, And the stars Shineth bright, Fare thee well; Day has gone, Night is on. Thanks and praise, For our days, 'Neath the sun, Neath the stars, 'Neath the sky, As we go, This we know, God is nigh.

Regardless of our political perspective or our views on war, we must never forget those who died in wars and conflicts that the leaders of our countries deemed necessary at the time.

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