All sectors of the market were hammered as the DJIA (-394.64 -3.13% to 12209.81), S&P 500 (-43.37 -3.09% to 1360.68), and NASDAQ Composite (-75.38 -2.96% to 2474.56) plunged as oil price concerns overwhelmed the equity market.

Middle East tension that was triggered by the Israeli Prime Minister who announced that Iran’s presumed nuclear programme will be stopped, likely by Israel’s nuclear power. Ehud Olmert said that Iran's nuclear programme must be stopped by what he termed “all possible means”. Subsequently, Crude oil jumped from $122.58 per barrel on Thursday morning to $138.54 at the close Friday for West Texas Intermediate near futures and $1.3769 for European Brent.

Libya's oil minister Shokri Ghanem told Bloomberg News, "I expect (oil) to reach $140 before the end of the month." He stated the market is well supplied with oil and added, interestingly, that “speculators” are to blame for the increase in oil prices. If Olmert was musing or speculating, the market was saying otherwise!

The US Dollar collapsed, falling -0.91% to 72.38 after the US Jobs Report reported that the unemployment rate jumped to 5.5%, well above expectations, as new workers joined the work force and non-farm payrolls fell by -49000.

The 30-year Treasury Bond jumped +0.75% to 115.11 as yields plunged on the market’s safe haven move from riskier equities to risk-free bonds.

The Gold, Palladium, Platinum and Silver spot price at the close on Friday were: 901.35, 431.5, 2070, and 17.48 per ounce, respectively.

The Euro futures closed at 1.5759.

The DJIA near futures closed at 12214 and the NASDAQ 100 (non-financial) index futures closed at 1988.75.

The biggest loser of the Cara 100 equities was India’s HDFC Bank (HDB), which fell -7.4%. The gainers were all goldminers or oil related: Canada’s Goldcorp and Barrick goldminers (GG +4.5% and +4.1%) and EnCana +2.1%). Norwegian Statoil (STO) gained +2.7%.

If there was one sector that won on the day, it was the Energy sector. But XLE dropped -2.0% as traders knew that $138 oil is unsustainable, and if left unchecked for a week or two, would send the entire equity market into massive losses based on the Stagflation, which is a stagnant (or worse) economy tied to inflation.

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Comments & Outlook

It was not so long ago that I opined that unemployment in the US would start to surge. A few of you doubted me. The Friday Jobs Report is proof of concept. This problem is now front burner. So-called “rebates” are not jobs. They are also not wage and salary increases.

With respect to the Middle East, if hot-headed politicians cannot resolve their differences on a diplomatic level, and choose more war, the real problem will be worse than inflation, recession/depression and stock market crash. The average person, and tax-payer, will start to revolt.

The people have had enough. If allowed to fester and unemployment levels build to where I anticipate, and oil prices stay at the $138 level or higher, I believe the West is headed for broad general strikes and internal strife that will include domestic bombing and burning.

Interesting to me that the leadership that America needs, and is likely to get from Barack Obama, will now be headed for four or five months of intensely disrespectful dirty politics. The world, I think, is soon to witness a smear campaign in politics that will not make Americans look good in the eyes of others. Do they care? Probably not, but they should.

With regard to capital markets, investors who are locked by debt into long-term asset holdings are suffering and at risk of losing everything.

The opening on Monday should be interesting. Choose your poison.

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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
PBR	68.07	94.05	63.42	45.19
GGB	50.54	87.62	91.46	59.28	Sell alert (trig. 7 days ago [on 2008-05-29 at $49.59, +1.92% chg], after a 1 day DZ)
ATVI	34.02	86.84	83.30	65.40	Sell alert (trig. 1 days ago [on 2008-06-06 at $34.02, +0.00% chg], after a 6 day DZ)
ECA	92.60	82.67	69.96	59.16
SYT	63.52	80.06	68.98	61.17	Sell alert (trig. 1 days ago [on 2008-06-06 at $63.52, +0.00% chg], after a 1 day DZ)
WMT	58.37	78.85	74.19	57.48	Sell alert (trig. 1 days ago [on 2008-06-06 at $58.37, +0.00% chg], after a 1 day DZ)
NUE	78.20	77.30	64.89	57.52
SU	67.86	77.10	69.72	53.63
PDA	57.80	76.79	55.91	35.75	Sell alert (trig. 5 days ago [on 2008-06-02 at $63.80, -9.40% chg], after a 3 day DZ)
TT	46.49	76.65	65.62	56.92
TS	64.65	75.11	88.96	72.27	Distribution Zone (for 2 days)
BHP	83.82	74.45	54.96	38.74
ABB	31.72	74.28	66.00	38.55
STO	38.43	74.12	65.16	51.49
RIMM	131.41	73.94	58.25	37.19
NKE	67.93	73.81	59.03	53.87
EXC	87.41	72.15	60.89	47.51	Sell alert (trig. 8 days ago [on 2008-05-28 at $88.82, -1.59% chg], after a 1 day DZ)
RIO	37.44	72.02	48.58	34.22
VCP	34.35	71.71	63.81	66.73
IMO	59.55	70.49	60.63	58.66
CVX	99.50	70.44	69.84	52.94
DELL	23.74	53.04	78.44	75.94
DNA	73.69	48.48	56.18	70.14

At least one RSI value <30:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
BC	13.37	21.28	26.69	27.95	Accumulation Zone (for 1 days)
UBS	23.91	21.71	21.57	32.84	Buy alert (trig. 2 days ago [on 2008-06-05 at $25.40, -5.87% chg], after a 7 day AZ)
ERJ	33.27	21.73	24.01	16.23	Accumulation Zone (for 4 days)
GOL	14.11	24.78	34.73	32.02
WFMI	28.50	28.32	32.44	42.37	Buy alert (trig. 8 days ago [on 2008-05-28 at $28.69, -0.66% chg], after a 5 day AZ)
SBUX	17.67	29.28	51.44	50.06
BMY	20.88	29.44	34.30	27.05
GSK	42.33	29.99	37.69	27.94
DB	100.07	31.89	22.36	16.02
GE	30.02	33.72	23.70	31.14
NOK	26.13	33.90	30.17	17.15
BA	73.16	35.19	31.72	12.55
WHR	68.74	35.39	31.74	27.27
IBN	35.45	36.84	28.04	30.66
PAYX	33.17	39.98	34.93	27.20
DEO	77.46	41.29	29.19	41.26
UTX	67.01	41.29	29.06	22.28
HDB	86.58	41.39	28.77	27.13
ABV	66.34	43.59	30.14	27.84
BBBY	30.47	44.08	44.43	27.68
CHA	61.03	45.40	35.02	25.47
DOW	38.78	46.29	41.97	27.46
CHL	71.27	50.49	31.19	28.30
TEF	82.40	53.43	35.70	28.57

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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
HPQ	47.63	-0.88	-1.81%	1.21%	6.08%	-2.91%	-4.38%	-0.31%	-8.77%	3.48%
WMT	58.37	-1.43	-2.39%	1.09%	4.14%	2.12%	24.46%	16.79%	18.47%	15.01%
CVX	99.50	-0.49	-0.49%	0.35%	-2.36%	2.11%	6.46%	13.33%	8.89%	21.65%
VZ	38.23	-0.73	-1.87%	-0.62%	2.03%	-0.05%	-11.53%	8.36%	-13.94%	-10.93%
HD	27.18	-0.73	-2.62%	-0.66%	1.00%	-2.65%	4.10%	5.51%	-7.83%	-29.03%
PG	65.37	-1.30	-1.95%	-1.03%	-0.38%	-0.83%	-9.60%	-1.71%	-11.88%	3.45%
INTC	22.90	-0.97	-4.06%	-1.20%	-4.10%	-2.13%	-9.66%	15.26%	-18.15%	6.57%
JNJ	65.76	-1.20	-1.79%	-1.47%	0.54%	-1.70%	-0.23%	5.00%	-3.72%	4.55%
DIS	33.01	-1.48	-4.29%	-1.76%	-1.79%	-4.48%	3.67%	5.63%	0.89%	-5.44%
XOM	86.79	-2.52	-2.82%	-2.22%	-6.18%	-3.49%	-7.19%	2.70%	-5.09%	3.79%
GE	30.02	-1.04	-3.35%	-2.28%	-3.19%	-7.89%	-18.34%	-8.64%	-19.43%	-19.50%
KO	55.80	-1.39	-2.43%	-2.55%	-4.24%	-0.87%	-8.66%	-5.58%	-11.53%	7.31%
MSFT	27.49	-0.81	-2.86%	-2.93%	-3.44%	-6.08%	-21.95%	-0.29%	-20.43%	-9.24%
CAT	79.99	-2.74	-3.31%	-3.21%	-2.71%	-2.95%	13.25%	13.06%	7.59%	1.66%
DD	46.32	-1.41	-2.95%	-3.32%	-4.36%	-6.10%	5.90%	-0.32%	-1.97%	-9.14%
AA	39.22	-0.86	-2.15%	-3.38%	-3.87%	-1.08%	8.55%	2.22%	9.37%	-1.58%
IBM	124.94	-3.53	-2.75%	-3.46%	0.19%	0.02%	19.34%	11.04%	13.89%	22.00%
MMM	74.86	-2.64	-3.41%	-3.48%	-2.32%	-2.72%	-9.49%	-3.96%	-11.74%	-13.58%
AXP	44.65	-2.78	-5.86%	-3.67%	-3.69%	-8.60%	-12.52%	8.14%	-25.00%	-29.95%
MRK	37.49	-1.40	-3.60%	-3.77%	-3.95%	-4.09%	-34.65%	-11.56%	-36.99%	-26.14%
MCD	56.95	-1.10	-1.89%	-4.00%	-2.70%	-4.72%	-1.98%	7.37%	-5.52%	12.46%
T	38.21	-1.25	-3.17%	-4.24%	-2.48%	-1.67%	-6.80%	9.11%	-1.57%	-5.37%
GM	16.22	-0.83	-4.87%	-5.15%	-11.99%	-23.31%	-33.55%	-27.43%	-43.31%	-45.95%
UTX	67.01	-2.96	-4.23%	-5.67%	-6.72%	-9.52%	-10.90%	-2.64%	-14.08%	-4.16%
AIG	33.93	-2.48	-6.81%	-6.48%	-10.26%	-23.15%	-39.73%	-20.87%	-44.69%	-52.99%
JPM	40.09	-2.01	-4.77%	-6.77%	-6.88%	-12.94%	-4.93%	7.28%	-13.24%	-20.71%
PFE	17.96	-0.71	-3.80%	-7.23%	-9.20%	-10.07%	-21.61%	-16.81%	-25.69%	-32.96%
C	20.06	-1.16	-5.47%	-8.36%	-7.64%	-17.45%	-30.64%	-5.24%	-41.60%	-62.39%
BAC	30.50	-1.49	-4.66%	-10.32%	-12.18%	-18.30%	-24.80%	-16.48%	-33.64%	-39.40%
BA	73.16	-4.15	-5.37%	-11.61%	-10.13%	-13.69%	-15.54%	-7.99%	-20.29%	-25.57%

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 %