The Toronto Composite moved slightly ahead (+4.30 +0.03% to 15073.13), while the Toronto Venture Exchange index fell (-9.23 -0.35% to 2628.8). One look at the Money Flow of the TSE chart shows that for six or seven weeks, there has been a massive selling process underway as the index moved higher on increasingly fewer leaders, like Research in Motion (RIM). In fact, the Daily chart of the Venture Exchange (CDNX) shows more clearly the reality of the selling process. In other words, I think the Toronto market is held by a string that can’t withstand many more days like the massive international selling that went on yesterday and early today in Asia-Pacific markets.

Earlier today, Australia (-1.19%), Shanghai (-6.54%), Hong Kong (-2.26%), India (-2.17%) and Japan (-2.23%) all followed the sell-off that occurred yesterday in the US.

Yesterday, in the US equity market, the top performing sector ETF was Energy (XLE +0.38%), while the worst were Consumer Discretionary (XLY -2.20%) and Financials (XLF -21.66%).

Among industry groups, the best were Oil Services ($OSX +0.90%) and Goldminers ($XAU +0.68%), while the worst were Banks ($BKX -2.90%), Semi-conductors ($SOX -2.32%) and Retailers ($RLX -1.91%).

For the Cara 100, the best performer was SYT (+1.55%), while the worst were consumer stocks (BC -6.0%, JCP -5.0% and WFMI -3.9%).

The earnings of brokerage giant Morgan Stanley plunged -60% for the Q2, to $1.03 billion ($0.95 a share), down from $2.58 billion a year earlier. Traders had been alerted to the problems on Wall Street that are much more serious than just “sub-prime” related.

With all-time record high fuel costs, FedEx reported losing -$241 million (-$0.78 cents a share) versus earnings of $610 million a year earlier.

Crude Oil ($WTIC) turned higher in the mid-afternoon, closing at $1.3717/barrel (+$2.64/bbl) when the $USD sank on concerns over a potential workers strike in Nigeria. The US Dept of Energy also reported crude oil inventories declined -1.2 million bbls last week and gasoline inventories fell by the same amount although the consensus had been for an increase of +800,000 barrels, which also pushed up the oil price.

The US Dollar weakened a bit at 73.43 (-0.11%), while the Euro strengthened a bit (+0.13%) to 1.5533.

The long-dated US Bond ($USB) gained +0.68% on the day as yields came off. The T-Bill yield dropped from 1.955 to 1.880 yesterday as capital flowed from equities into cash.

The $GOLD futures closed up +$6.60/oz to 893.50, but are a little softer this morning as the $USD strengthened.

With a slightly positive $USD this morning, the precious metal spot prices are down a small bit: 890.95, 464, 2054 and 17.26 for gold, palladium, platinum and silver, respectively.

Crude oil futures are trading down -0.955 to 135.725/bbl at this point in the morning, and the DJIA futures are up +32 to 12060.

European bourse prices are flat so far today.

Everybody seems to be waiting to see if the selling wave of the past couple days is over.

---

Comments & Outlook

I had to drop Trane (TT) from the Cara 100 as it was acquired by another company. In its place, I added McDonalds (MCD) largely for the reasons I discussed in the WIR of June-08.

McDonalds [GICS 30, Dow 30]
(MCD: Value Line Report Jun. 6: next one is due Sept. 5)

With regard to McDonalds, the Value Line analyst seems to be enamoured with the ramp up in earnings this year as he has forecasted growth from $2.91/share to $3.40/share, which is a +17% growth, more than double the normal growth range for this company.
Still, he says, "the shares offer below-average capital appreciation potential 3 to 5 years hence." The good news is that MCD is "a good pick for value-conscious investors" he says.

I can't argue either way. What I do feel is that the metrics are good enough now for inclusion of the company in the Cara 100, and I have been giving some thought to that.
As you know, there is a difference between a company and its share price. This company is well managed. But the stock has had a big run from $12 in 1Q03 to its present $56.95. I don't think we'll see that kind of performance again for a while.

Remember; the Cara 100 Global list is a watchlist of over-performing companies with (for the most part) sound financials. The Cara 100 is not a list of stocks that I recommend. Timing of trades is a whole different matter. But, if you stick with quality, quality, quality, then you get to focus on a few companies whose stocks always seem to outperform the broad market in terms of total returns (dividends as well as capital gains) when market conditions are right. Our job, then, is made easier in that we review a relatively small selection of higher quality situations, leaving us more time for risk management processes.

I updated the Cara 100 data in the top nav bar tab under the Global 100 menu. I also added the links to Google Finance, which are impressive. Kudos to Google Finance. At some time this year, I will expand the Cara 100 lists to include from regions of the world instead of just my view of the global best companies.

---

Links & Charts

---

International Economics Review

US Economic Calendar.

---

Knobias Cara100 Tables

---

Cara 100 Daily RSI-7 Charts

At least one RSI value >70:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
ATVI	36.00	89.54	85.56	68.31	Sell alert (trig. 1 days ago [on 2008-06-18 at $36.00, +0.00% chg], after a 1 day DZ)
GGB	51.28	87.77	76.02	64.21
ECA	95.72	85.52	69.10	69.30
SYT	66.59	85.19	72.59	71.45	Distribution Zone (for 1 days)
WMT	57.67	84.73	65.61	40.23
RIMM	144.45	82.99	72.40	72.04	Distribution Zone (for 1 days)
PDA	58.96	77.79	58.82	46.02
TT	46.49	76.65	65.62	56.92
EXC	90.10	75.93	71.67	62.52
GG	40.90	75.57	55.24	60.33
TS	62.49	73.70	73.08	51.27	Sell alert (trig. 7 days ago [on 2008-06-10 at $63.23, -1.17% chg], after a 3 day DZ)
NKE	67.88	72.48	60.89	50.14
PBR	68.65	71.43	60.04	51.77
SU	65.50	71.42	59.17	48.91
QCOM	49.10	70.78	72.31	57.01
DELL	23.89	53.52	75.61	57.70

At least one RSI value <30:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
BC	12.15	18.71	21.05	20.60	Accumulation Zone (for 1 days)
SBUX	17.77	23.80	52.00	47.74
ERJ	29.73	24.45	17.37	8.20	Accumulation Zone (for 12 days)
UBS	24.09	24.53	28.39	44.62	Buy alert (trig. 5 days ago [on 2008-06-12 at $23.09, +4.33% chg], after a 1 day AZ)
GOL	13.03	25.13	32.47	41.39	Buy alert (trig. 3 days ago [on 2008-06-16 at $12.78, +1.96% chg], after a 4 day AZ)
WFMI	25.84	25.39	22.37	24.99	Accumulation Zone (for 1 days)
BMY	19.78	25.87	28.64	26.13	Accumulation Zone (for 1 days)
GE	28.21	25.99	21.74	16.71	Accumulation Zone (for 5 days)
BDK	58.09	27.34	21.13	24.24	Accumulation Zone (for 2 days)
DB	95.16	27.87	22.48	25.71	Accumulation Zone (for 1 days)
JCP	36.72	29.07	29.74	29.60	Accumulation Zone (for 1 days)
GFI	11.03	29.76	23.00	18.84	Accumulation Zone (for 1 days)
WHR	65.00	32.02	20.66	29.87
SNDK	22.98	32.42	29.96	19.57
GRMN	43.09	34.24	36.64	27.65
CCL	34.97	34.50	25.71	27.69
AET	42.60	34.53	36.56	21.80
SWK	45.87	37.09	28.71	33.36
NOK	25.41	37.49	25.68	30.57
YHOO	22.91	39.10	26.12	13.93
KO	53.16	39.39	24.30	23.99
DEO	74.54	39.47	23.17	30.40
HBC	80.32	47.53	40.93	29.48
JNJ	64.44	51.19	42.90	29.68
LLTC	33.05	52.05	43.44	24.03
VCP	30.00	55.72	40.24	22.32

---

International Equity Markets Review

Europe

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

---

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

---

Here is the latest session data for the German DAX.

---

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

---

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

---

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

---

Asia-Pacific

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

---

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

---

Here is the latest chart for the Singapore index .

---

Here is the latest chart for the Shanghai Composite index .

---

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

---

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

---

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

---

US Equity Markets Review

DJIA (interactive) chart

NASDAQ Composite (interactive) chart

Table 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
C	20.40	-0.06	-0.29%	6.19%	-3.23%	-7.73%	-29.46%	-1.50%	-32.85%	-62.19%
MSFT	28.46	-0.34	-1.18%	4.94%	3.34%	-1.04%	-19.19%	-3.26%	-18.08%	-6.72%
JPM	38.74	-0.30	-0.77%	4.34%	-6.94%	-11.35%	-8.13%	-9.19%	-11.75%	-23.18%
HD	26.55	-0.32	-1.19%	2.47%	-2.32%	-3.00%	1.69%	-2.35%	0.30%	-30.06%
INTC	22.28	-0.30	-1.33%	2.15%	-5.11%	-7.51%	-12.11%	2.44%	-14.01%	-7.82%
UTX	68.07	-0.34	-0.50%	2.13%	-1.72%	-7.26%	-9.49%	-1.63%	-10.34%	-5.71%
BA	74.65	0.27	0.36%	1.83%	-4.32%	-12.32%	-13.82%	-2.46%	-14.36%	-23.36%
DD	46.62	-0.53	-1.12%	1.59%	-0.32%	-4.76%	6.58%	-1.79%	7.97%	-9.91%
PFE	17.77	0.05	0.28%	1.25%	-5.48%	-11.37%	-22.44%	-12.98%	-23.96%	-32.33%
CAT	79.70	-0.99	-1.23%	0.98%	-3.35%	-4.94%	12.84%	3.68%	12.17%	-2.63%
IBM	124.16	-0.94	-0.75%	0.74%	-2.66%	-0.81%	18.60%	4.86%	16.79%	17.88%
HPQ	46.59	-0.75	-1.58%	0.24%	-0.47%	0.28%	-6.46%	-2.80%	-8.68%	1.53%
CVX	99.26	-1.11	-1.11%	-0.16%	3.35%	-3.72%	6.21%	15.26%	8.85%	19.03%
AXP	42.42	-0.34	-0.80%	-0.40%	-7.06%	-10.34%	-16.89%	-2.95%	-18.08%	-32.82%
AA	39.10	-0.35	-0.89%	-0.56%	0.51%	-9.55%	8.22%	1.30%	13.66%	-6.64%
XOM	87.83	-0.79	-0.89%	-0.88%	2.43%	-7.12%	-6.07%	-0.58%	-3.93%	1.70%
MCD	58.21	-1.00	-1.69%	-0.92%	0.40%	-2.46%	0.19%	6.13%	-2.71%	11.09%
DIS	32.95	-0.16	-0.48%	-0.96%	-4.08%	-3.34%	3.49%	3.88%	-0.21%	-4.60%
JNJ	64.44	-1.15	-1.75%	-1.17%	-3.17%	-2.59%	-2.23%	-0.68%	-4.83%	3.39%
MMM	74.30	-0.67	-0.89%	-1.29%	-2.70%	-4.17%	-10.17%	-8.21%	-13.45%	-15.20%
WMT	57.67	-1.02	-1.74%	-1.45%	-0.02%	3.07%	22.96%	13.12%	19.55%	17.43%
BAC	28.37	-0.87	-2.98%	-1.63%	-11.32%	-19.84%	-30.05%	-27.13%	-31.64%	-43.16%
PG	65.00	-0.80	-1.22%	-1.81%	-2.18%	-1.31%	-10.11%	-5.22%	-10.76%	5.23%
VZ	35.98	0.09	0.25%	-1.88%	-2.70%	-4.89%	-16.73%	1.96%	-17.87%	-15.44%
MRK	34.86	0.18	0.52%	-2.43%	-8.67%	-12.28%	-39.24%	-19.29%	-41.65%	-31.15%
T	35.25	-0.44	-1.23%	-2.46%	-8.44%	-10.46%	-14.02%	-4.13%	-13.18%	-11.90%
AIG	31.52	-0.76