H1 closed yesterday with the DJIA (+3.50 +0.03%) at 11350.01 and the S&P 500 (+1.62 +0.13%) almost flat, while the NASDAQ Composite sank -22.65 -0.98% to 2292.98. The Toronto Exchange closed +111.82 at 14467.03.

In New York, the leading sectors were Utilities (XLU +2.4%), Telecom (IYZ +1.7%) and Energy (XLE +1.4%). Financials (XLF -1.5%) were the worst with Broker-Dealers ($XBD -2.1%) and Banks ($BKS -1.9%) both down. Retailers ($RLX) dropped -1.9%.

Among the banks and brokers, Lehman (LEH) fell -11.0% on the day as rumors abound that the company is for sale.

For the extreme Cara 100 stocks, the winners were: CCJ (+6.0%), NTES (+5.3%), DNA (+4.4%) and CEO (+4.2%). The losers were: BC (-5.8%), UBS (-4.8%), WFMI (-3.9%), and SBUX (-3.7%). RIMM was weak again too as the NASDAQ dropped.

The US long bond ($USB) was off a bit (-0.05%) to 115.59, whereas yields generally were also down a bit, so the shorter bonds lifted a bit. The T-Bill yield gained +4.6% to 1.705.

The US Dollar index ($USD) gained +0.32% to 72.53, while the Euro ($XEU -0.26% to 1.5749) and Yen ($XJY -0.15% to 97.90) lost a bit of ground.

Crude Oil ($WTIC) lost -$0.21/bbl to 140.00, while $GOLD dropped -$3.00 to 928.30.

Earlier today, the Asia-Pacific equity markets were weak: Australia All-Ords -1.35% to 5261.1; Shanghai Composite -3.09% to 2651.6; and India’s Sensex 30 -3.71% to 12961.68. Hong Kong’s Hang Seng gained +0.27% to 22101 and tokyo’s Nikkei Dow lost just -0.13% to 13463.2.

European stocks are getting hammered today after Goldman Sachs recommended buying puts as “crash insurance”. At 8:10am ET, the UK FTSE 100 is down -2.68% to 5475.3; the French CAC down -2.40% to 4328.6; and the German DAX down -1.90% to 6296.5. The big losers in Europe today were the big European banks, UBS (UBS), Deutsche Bank (DB) and HSBC (HBC).

The futures prices for the USD, Euro, WTIC Crude Oil and the DJIA are 72.635 (weaker), 1.5720 (stronger), 142.05 (+2.05/bbl), and 11235 (-104), respectively. The focus today is on the continued strength of the oil market, and its pressure on the $USD and the US economy.

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Comments & Outlook

By way of comment to those who don't understand the puts and calls options market, this piece of Goldman Sachs so-called advice is late by perhaps a year. In all likelihood, Goldman Sachs will be selling you their puts and closing short positions in the financials in the next few months.

Trading is an exercise in risk avoidance and this Goldman ploy is a classic risk transference one. It may make sense if you are a sophisticated day trader who understands options and follows markets from minute to minute, but the average trader would be misled, duped once again by HB&B "advice".

In the Week In Review, I made a comment that raised more letters to me than I can recall. I said, basically, that Bear markets generate plenty of opportunities and that, being in one today, we must be looking forward by preparing wish lists based on our thinking how the future is likely to play out.

I also looked at the promise of the high dividend yielding Telcos, AT&T (T) and Verizon (VZ), particularly for income investors, who I think should be looking for opportunities to switch from bonds (which will suffer as interest rates increase in future, which is likely). The dividends of these stocks are well protected (especially T) and growing, along with earnings growth, and the prices of the stocks nearing the Accumulation Zone. So, while the average retail investor might wish to hold off for a couple months to see how the expected broad market shake-out affects these stocks (prices will be protected with the high current yield), it is my belief that the major fund managers, having to move cash into the market, will start to move in now, and that will provide a measure of support for a summer rally.

Yesterday, in a flat DJIA/S&P 500 market session, T jumped +2.84% to $33.69 and VZ +3.27% to $35.40. Either somebody’s listening or else my crystal ball is working better these days.

Btw, there are still people who do not appreciate the risks posed by Interventionists in our so-called free capital markets. The major Interventionists are the central banks of the world. They say their mandate is to stabilize prices, to our benefit, but the facts say otherwise.

For example, nine years ago there was an agreement dubbed the Washington Accord wherein central bankers agreed to sell only enough gold in the open market, they said at the time to prevent its price from collapsing. The price at that point was US$260 an ounce. Far from collapsing, today the gold price is about $930, and the 200-day Moving Average is about $865. If central banks had sold no gold since the time of the Washington Accord, where do you think the POG would be today? $1500? $2000?

The Washington Accord was extended by the Gold Agreement of September 27 2005, which limits central bank annual gold sales to 500 tonnes between 2004 and 2009. It is my belief that central banks only sell gold whenever HB&B or their major clients are ready to buy it and to the extent they want it. The “Accord” is to prevent gold from falling into the wrong hands, ie, to the public, because that would put the public into a strong position of controlling government deficit spending and its soaring debt.

Have a great day to all, and a special one Canada. Yes, it’s true; you can take the boy out of Canada, but not Canada out of the boy.

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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	64.70	95.09	68.49	59.75	Sell alert (trig. 8 days ago [on 2008-06-19 at $65.11, -0.63% chg], after a 1 day DZ)
ECA	90.93	86.43	61.79	52.54
TS	74.50	84.05	84.29	86.98	Distribution Zone (for 4 days)
ATVI	34.07	81.60	68.44	40.80	Sell alert (trig. 7 days ago [on 2008-06-20 at $35.85, -4.97% chg], after a 1 day DZ)
PBR	70.83	80.12	65.87	66.89
GGB	24.01	79.68	68.05	49.50
TT	46.49	76.65	65.62	56.92
EXC	89.96	75.44	67.29	55.63
GG	46.17	74.49	67.88	82.00
WMT	56.20	74.38	50.39	35.77
CVX	99.13	71.51	64.85	53.95
NUE	74.67	70.57	52.03	43.38
ABX	45.50	60.28	61.29	82.00
CCJ	42.87	55.79	65.59	81.16
GFI	12.65	29.34	45.65	76.15	Buy alert (trig. 7 days ago [on 2008-06-20 at $11.15, +13.45% chg], after a 2 day AZ)

At least one RSI value <30:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
UBS	20.66	9.82	21.11	31.23	Buy alert (trig. 5 days ago [on 2008-06-24 at $22.03, -6.22% chg], after a 2 day AZ)
BC	10.60	10.42	17.31	21.68	Accumulation Zone (for 2 days)
WFMI	23.69	16.49	21.47	18.73	Accumulation Zone (for 3 days)
GOL	11.28	18.69	20.78	24.50	Accumulation Zone (for 3 days)
BDK	57.51	20.17	22.46	34.40	Buy alert (trig. 8 days ago [on 2008-06-19 at $59.66, -3.60% chg], after a 2 day AZ)
JCP	36.29	20.19	33.89	38.59	Buy alert (trig. 8 days ago [on 2008-06-19 at $37.25, -2.58% chg], after a 1 day AZ)
DB	85.35	20.86	13.89	17.93	Accumulation Zone (for 3 days)
ERJ	26.50	21.60	11.65	9.41	Accumulation Zone (for 20 days)
TM	94.00	23.06	30.29	23.94
TGT	46.49	23.31	28.37	25.02	Accumulation Zone (for 1 days)
SBUX	15.74	23.76	36.73	28.71
SNDK	18.70	23.90	23.60	11.90	Accumulation Zone (for 7 days)
KSS	40.04	24.74	34.20	33.49
CCL	32.96	25.06	27.87	30.32	Buy alert (trig. 1 days ago [on 2008-06-30 at $32.96, +0.00% chg], after a 1 day AZ)
WHR	61.73	26.55	18.89	25.04	Accumulation Zone (for 1 days)
BMY	20.53	26.85	39.46	57.23	Buy alert (trig. 6 days ago [on 2008-06-23 at $19.70, +4.21% chg], after a 1 day AZ)
UTX	61.70	27.12	24.11	18.09	Accumulation Zone (for 1 days)
GE	26.69	27.26	16.04	30.34	Buy alert (trig. 1 days ago [on 2008-06-30 at $26.69, +0.00% chg], after a 2 day AZ)
BA	65.72	27.99	22.19	13.59	Accumulation Zone (for 1 days)
NOK	24.50	28.55	23.43	41.13
IBN	28.76	29.12	23.83	19.64	Accumulation Zone (for 1 days)
GFI	12.65	29.34	45.65	76.15	Buy alert (trig. 7 days ago [on 2008-06-20 at $11.15, +13.45% chg], after a 2 day AZ)
SWK	44.83	29.50	30.87	32.82
HDB	71.66	30.61	19.46	18.51
WAG	32.51	32.09	28.61	15.92	Buy alert (trig. 2 days ago [on 2008-06-27 at $32.97, -1.40% chg], after a 1 day AZ)
ERTS	44.43	32.45	25.81	31.20
DOW	34.91	32.49	24.67	16.67
TGP	26.33	32.75	26.53	20.69
AET	40.53	32.89	28.10	31.50
PAYX	31.28	34.46	28.39	28.60
CSCO	23.26	34.64	33.52	18.83
WBK	95.29	35.43	28.00	29.46
DEO	73.87	35.47	23.47	44.92
MFC	34.71	35.89	33.95	26.07
CHA	54.39	36.69	21.44	30.96
RY	44.67	36.79	31.75	26.10
PG	60.81	36.82	21.11	21.14
YHOO	20.66	37.54	22.75	14.62
KO	51.98	38.22	20.88	27.72
HBC	76.70	39.84	30.03	19.00
ABV	63.35	41.04	31.52	29.62
DIS	31.20	42.90	35.76	26.37
DELL	21.88	43.57	50.31	28.48
CHL	66.95	44.97	26.93	37.69
VCP	26.71	45.63	29.09	17.49
NKE	59.61	46.90	31.17	18.47
GOOG	526.42	47.01	43.50	26.89
MBT	76.61	50.50	37.50	29.47
CHRW	54.84	51.14	31.03	23.44
ORCL	21.00	53.24	41.85	27.13
BBD	20.46	54.06	40.03	28.68
MICC	103.50	54.71	40.61	20.98
ABB	28.32	56.48	37.38	28.32
SU	58.12	57.99	42.45	28.63
RIMM	116.90	58.96	39.05	20.45	Sell alert (trig. 7 days ago [on 2008-06-20 at $144.56, -19.13% 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
MRK	37.69	0.71	1.92%	5.19%	7.65%	-1.26%	-34.30%	-15.32%	-35.80%	-24.32%
PFE	17.47	0.19	1.10%	0.52%	-1.69%	-8.92%	-23.75%	-14.78%	-23.71%	-31.68%
XOM	88.13	1.58	1.83%	0.49%	0.16%	0.36%	-5.75%	3.41%	-7.23%	5.07%
JNJ	64.34	0.77	1.21%	0.08%	-2.28%	-3.26%	-2.38%	0.25%	-4.51%	4.41%
CVX	99.13	1.33	1.36%	0.07%	-0.36%	-0.24%	6.07%	17.31%	4.50%	17.68%
WMT	56.20	-0.10	-0.18%	-0.78%	-5.24%	-1.75%	19.83%	7.83%	16.89%	16.82%
MCD	56.22	-0.28	-0.50%	-1.39%	-6.21%	-3.98%	-3.24%	1.33%	-5.51%	10.76%
VZ	35.40	1.12	3.27%	-1.42%	-2.32%	-6.50%	-18.07%	-1.26%	-20.66%	-14.02%
MSFT	27.51	-0.12	-0.43%	-1.64%	-4.91%	-1.04%	-21.89%	-1.43%	-23.84%	-6.65%
T	33.69	0.93	2.84%	-2.01%	-6.86%	-15.56%	-17.83%	-10.54%	-20.62%	-18.82%