The DJIA (-134.50 -1.06% to 12503.82), S&P 500 (-14.71 -1.05% to 1385.67) and NASDAQ Composite (-31.13 -1.23 to 2491.53) closed well down on the session, but also higher than the intra-day lows.

The sector leader was Energy (XLE +0.59%), which was the only sector that was up. The key losers were the financials (XLF -1.5%) and Technology (XLK -1.4%).

Natural Gas ($XNG +0.8%) was higher, while Computer Networking stocks ($NWK -4.0%) and Airlines ($XAL -3.1%) were weakest.

The higher stocks for the Cara 100 companies were China Telecom (CHA +5.0%), which rebounded off the hammering it took when the Chinese authorities announced a reorganization of the country’s telecommunications industry), Genentech (DNA +4.3%), and Garmin (GRMN +2.9%).

The Cara 100 losers were led by the two big private banks of India, ICICI (IBN -6.2%) and HDFC (HDB -5.4%). Brazil’s Embraer (ERJ -5.3%) and Perdigao (PDA -2.9%) were also weak.

The market General, General Electric (GE) hit a 52-week low of $30.18.

There was nothing of note yesterday on the earnings or M&A fronts.

On the macro-economics front, the Institute for Supply Management reported US manufacturing for May was modestly stronger M/M due to increasing prices, but output was still declining.

Crude Oil ($WTIC) closed up +$0.41/bbl to 127.76. This morning at 8am ET, the futures were down -$0.50 to 127.20. The European Brent was down -$0.87/bbl to 127.15.

In the morning spot market, at 8:03am ET, prices for precious metals are unremarkable. The Spot prices for Gold, Palladium, Platinum and Silver (vs yesterday in brackets) are: 892.92 (893.46); 429 (429); 2011 (2008); and 16.73 (16.86), respectively.

The Euro futures were trading a tad stronger early today at 1.5580, about the same as at this point yesterday.

The DJIA near futures are up slightly (+12) to 12516, but on the rise.

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Comments & Outlook

In my Week In Review I had noted the over-bought price of PDA ($63.80). PDA dropped -2.9% yesterday. I anticipate more softness.

I also opined that Brunswick Corp (BC) might be nearing a Buy point, if extreme weakness set in, but the stock was down just -1.4% yesterday to $13.51. More weakness is required before I have any buying interest.

I suppose the precious metals rallied sharply at 8:30am yesterday after the banks and broker-dealers received ratings downgrades, leading traders to figure the Fed Head and the Treasury Secretary would come to their rescue with yet another liquidity pump.

Why are bankers forecasting a higher $USD? They know their situation is dire, which will require more central bank help and they know how that story ends.

Although I have opined that precious metals would come under pressure from a brief rally in the US Dollar, I have to admit that I figured on a longer time between when the banks first went to the well for capital and the second time.

Now, today we have Barclays bank (BCS -3.5% to $28.87) stating a need to raise capital. Tell me that the Barclays management didn’t know that back on May 7 when the stock was about $37.50. If you do, I won’t believe it.

What the market needs is for the Fed to state that the previous rescue plan was all she wrote. No mas! Let the weakest of these banks go down and the strongest buy whatever’s left. Isn’t that the essence of a free market?

Bring it on. It’s about time.

Btw, LEH is no longer in the Cara 100 list, but the Knobias data service still includes it in the portfolio. I need to inform them of the change I made some months ago.

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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
SYT	61.42	92.51	61.60	53.90
ECA	90.65	88.88	65.95	48.01	Sell alert (trig. 7 days ago [on 2008-05-22 at $94.31, -3.88% chg], after a 8 day DZ)
GGB	49.66	85.62	88.25	59.92	Sell alert (trig. 3 days ago [on 2008-05-29 at $49.59, +0.14% chg], after a 1 day DZ)
PBR	71.35	84.55	74.42	54.73	Sell alert (trig. 7 days ago [on 2008-05-22 at $72.02, -0.93% chg], after a 5 day DZ)
ATVI	33.57	80.03	86.46	70.42	Distribution Zone (for 3 days)
RIO	39.93	79.79	58.10	42.69	Sell alert (trig. 8 days ago [on 2008-05-21 at $41.78, -4.43% chg], after a 3 day DZ)
PDA	63.80	79.64	70.40	63.39	Sell alert (trig. 1 days ago [on 2008-06-02 at $63.80, +0.00% chg], after a 3 day DZ)
RIMM	137.02	78.90	66.83	53.83
ABB	32.25	78.10	73.63	48.85	Sell alert (trig. 6 days ago [on 2008-05-23 at $32.76, -1.56% chg], after a 1 day DZ)
WMT	57.20	78.04	69.75	54.73
SU	68.56	77.14	72.30	55.70	Sell alert (trig. 5 days ago [on 2008-05-27 at $68.68, -0.17% chg], after a 12 day DZ)
EXC	87.28	76.80	64.03	47.20	Sell alert (trig. 4 days ago [on 2008-05-28 at $88.82, -1.73% chg], after a 1 day DZ)
NUE	74.88	75.11	55.85	45.49
VCP	33.41	74.91	64.81	65.12
STO	38.48	74.39	66.49	45.38	Sell alert (trig. 5 days ago [on 2008-05-27 at $39.07, -1.51% chg], after a 7 day DZ)
TS	61.14	73.21	78.60	66.30	Sell alert (trig. 5 days ago [on 2008-05-27 at $59.21, +3.26% chg], after a 6 day DZ)
CVX	99.37	73.04	72.78	49.20	Sell alert (trig. 6 days ago [on 2008-05-23 at $100.73, -1.35% chg], after a 6 day DZ)
TT	46.23	72.99	57.97	43.90
QCOM	47.70	72.89	76.53	56.51	Sell alert (trig. 2 days ago [on 2008-05-30 at $48.54, -1.73% chg], after a 1 day DZ)
NKE	67.14	72.59	55.56	51.94
BHP	85.55	72.09	57.87	40.56
TOT	86.51	70.38	66.69	47.24	Sell alert (trig. 5 days ago [on 2008-05-27 at $87.15, -0.73% chg], after a 6 day DZ)
LLTC	36.63	65.76	70.30	55.30
ORCL	22.68	65.15	71.21	62.54
ADBE	43.46	59.62	73.31	67.50
DNA	73.95	47.86	54.95	77.32
DELL	22.79	46.48	71.14	76.37
GRMN	50.57	35.47	45.99	71.25

At least one RSI value <30:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
UBS	23.04	16.02	19.32	8.71	Accumulation Zone (for 5 days)
BC	13.51	20.11	28.47	10.87	Accumulation Zone (for 3 days)
WFMI	28.48	23.75	34.20	36.97	Buy alert (trig. 4 days ago [on 2008-05-28 at $28.69, -0.73% chg], after a 5 day AZ)
JCP	39.84	25.47	42.29	32.79
SBUX	17.93	26.97	53.83	66.10
BDK	63.06	27.31	34.27	34.23
KSS	44.31	27.84	44.85	36.10
GOL	14.88	28.92	38.37	40.38
GFI	12.88	30.88	35.44	28.37
ERJ	35.52	31.84	25.28	23.81
DB	104.50	32.02	27.81	10.88
GE	30.41	33.30	28.56	24.04
IBN	35.39	36.36	29.37	13.40
SWK	47.46	38.09	43.44	29.19
DEO	77.03	39.04	29.00	28.30
GS	172.34	41.61	41.45	25.45
PAYX	33.79	41.93	41.03	28.09
HDB	94.37	44.53	35.06	27.90
ABV	67.86	46.61	36.20	14.77
DOW	39.84	48.91	50.04	29.51
CHL	74.46	51.99	37.65	28.38
TEF	84.17	56.88	41.32	25.19
XOM	87.81	57.00	45.71	27.78
NTES	21.88	59.80	52.90	28.98

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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
T	39.90	0.00	0.00%	3.56%	-0.42%	-0.57%	-2.68%	14.56%	4.42%	-1.55%
HPQ	46.25	-0.81	-1.72%	2.87%	-2.20%	-4.36%	-7.15%	-3.18%	-9.60%	0.96%
WMT	57.20	-0.54	-0.94%	2.60%	0.28%	-0.52%	21.96%	15.35%	19.42%	15.63%
IBM	127.36	-2.06	-1.59%	2.54%	-0.36%	3.39%	21.65%	11.86%	21.09%	19.54%
JNJ	66.51	-0.23	-0.34%	2.45%	-0.25%	-2.56%	0.91%	7.34%	-1.82%	4.89%
VZ	37.86	-0.61	-1.59%	2.10%	-2.35%	-4.37%	-12.38%	4.24%	-12.38%	-11.97%
C	21.46	-0.43	-1.96%	1.61%	-7.18%	-18.68%	-25.80%	-9.49%	-35.56%	-60.63%
HD	27.16	-0.20	-0.73%	1.46%	-6.67%	-9.83%	4.02%	2.30%	-4.90%	-30.73%
MCD	58.55	-0.77	-1.30%	1.42%	-3.27%	-3.94%	0.77%	8.21%	0.14%	14.92%
UTX	70.73	-0.31	-0.44%	1.03%	-4.37%	-5.82%	-5.96%	0.31%	-5.40%	-0.07%
CAT	82.33	-0.31	-0.38%	0.96%	-1.64%	-0.57%	16.57%	13.83%	14.51%	5.36%
AA	40.63	0.04	0.10%	0.94%	-5.84%	12.52%	12.46%	9.40%	11.71%	-2.00%
MMM	76.25	-1.31	-1.69%	0.58%	-3.06%	-2.93%	-7.81%	-2.74%	-8.42%	-13.77%
DIS	33.30	-0.30	-0.89%	0.21%	-4.61%	-0.57%	4.59%	2.75%	0.45%	-5.51%
PG	65.36	-0.69	-1.04%	0.14%	-2.08%	-2.16%	-9.61%	-1.24%	-11.68%	2.96%
GE	30.41	-0.31	-1.01%	-0.07%	-5.35%	-8.79%	-17.27%	-8.24%	-20.58%	-18.80%
JPM	42.15	-0.85	-1.98%	-0.40%	-9.41%	-13.38%	-0.05%	3.69%	-7.61%	-18.79%
BA	81.15	-1.62	-1.96%	-0.41%	-4.72%	-5.30%	-6.31%	-1.98%	-12.31%	-18.71%
AXP	45.25	-1.10	-2.37%	-0.44%	-7.05%	-10.22%	-11.34%	6.97%	-23.28%	-30.46%
MSFT	27.80	-0.52	-1.84%	-0.89%	-7.30%	-4.92%	-21.07%	2.21%	-17.26%	-9.12%
INTC	23.20	0.02	0.09%	-0.90%	-7.20%	-1.61%	-8.48%	16.17%	-11.04%	3.76%
GM	17.44	0.34	1.99%	-0.91%	-15.67%	-24.83%	-28.55%	-25.09%	-41.54%	-42.82%
BAC	33.58	-0.43	-1.26%	-1.03%	-7.16%	-15.61%	-17.21%	-15.50%	-27.21%	-33.87%
DD	47.04	-0.87	-1.82%	-1.22%	-5.22%	-5.66%	7.54%	1.34%	1.93%	-11.41%
CVX	99.37	0.22	0.22%	-1.35%	-1.01%	4.25%	6.32%	14.67%	13.22%	20.84%
MRK	38.17	-0.79	-2.03%	-1.47%	-4.58%	-3.05%	-33.47%	-13.84%	-35.70%	-26.79%
PFE	19.18	-0.18	-0.93%