The world is at war today: it’s the people versus the bankers. The governments of the world must decide today and over the weekend precisely who they will support. Conflict of interest is and has been the issue. Let there be no doubt that should the G-20 governments decide to support the bankers, the people will revolt.

Will governments do the right thing, or is the world staring at financial Armageddon?

I will start by reporting Asia-Pacific results since that is where today started.

Every international equity market crashed – the important ones much worse than the others: Australia (-2.73% to 3831.6), Shanghai (-1.92% to 1839.6), Hong Kong (-8.30% to 12618.4), India (-11.0% to 8701.1), and Japan (-9.60% to 7649.1) showed capitulation.

In Europe at 8:18am ET (vs 7:18am today), the French CAC -8.18% (-8.61%); German DAX -8.33% (-8.36%); and UK FTSE 100 -7.39% (-7.32%) are down horribly in recognition that credit markets have seized and corporations, in reporting earnings which are not that bad, are also stating that current business conditions are near impossible. The finger-pointing has begun.

Yesterday, the DJIA +172.04 +2.02% to 8691.25), S&P 500 (+11.33 +1.26% to 908.11), and NASDAQ Composite (-11.84 -0.73% to 1603.91) reflected only the final hour of buying that appeared to some traders as coming from the forces of intervention. As the NYSE on-floor reporter said (to paraphrase), “One trader gushed with the last minute orders he was holding. Where are they coming from?”

The deception is obvious today. Those orders probably came from the Fed open market operations aka the Plunge Protection Team. This morning, traders are now saying, “Plunge this!”

Yesterday, the Toronto Composite managed a gain of +94.5 +1.02% to 9331.35, but the Venture Board, which contains the listings of so many negative cash flow companies, ie, those relying on the confidence of independent traders as well as credit from their bankers, fared badly. The Venture Board sank -4.73% to 858.00.

Energy (XLE +5.3%) was the sector leader yesterday in NY, followed by Utilities (XLU +2.4%) and Tech (XLK +2.3%). The losers were Basic Materials (XLB) and Healthcare (XLV), both down -2.3%.

The only strong industry groups were in the oil sector. The losers were the airlines ($XAL -6.6%) and the Goldminers ($XAU -5.2%). The volume increased, along with volatility, and the day traders again were the ones to profit most, if at all.

Among the Cara 100, there were many winners. DOW +10.5%, STO +10.4%, XOM +9.0%, CVX +8.1% and BA +8.4% seemed to enjoy the result of short-covering.

The $USD and $XBP (British Pound) were down -0.46% to 85.23 and -0.33% to 162.17 respectively. The Euro +0.41% to 129.12, Yen +0.47% to 102.73, and Cdn Loonie +0.50% to 80.19 were winners. That situation will reverse itself today as the Euro is crashing in a safe-haven panic move into USD.

The US long bond ($USB +1.81% to 117.95) continues to rally as traders move to protect themselves from the specter of falling equity prices. The credit market showed more problems as the US T-Bill yield sank almost -10% to 0.91. Bankers continue to squeeze because (i) the bail-out programs still have not been started in too many cases, and (ii) depositors are fleeing, causing the fractional reserve banking system to work in reverse, ie, to rapidly contract their ability to make loans as well as their need to call demand loans.

In futures this morning an hour ago, the $USD was at 86.88; and the Euro has moved down to 125.79. Commodity prices are getting hammered in the process as $GOLD is down to 696 and the spot price touched 680 at about 5:30am ET. $WTIC Crude Oil is down almost -$4/bbl to 64.07. The credit crunch has become the business crunch. This situation is not about recession/depression, but about the factors that will lead to worsening economic conditions if permitted to go unchecked.

Traders have thrown in the towel in the US equity futures market at this point. The DJIA futures are down -550 to 8224.

Earnings Season in the US may have kicked into high gear, with mixed results, but traders are totally focused on the $USD, the credit market melt-down and the lack of leadership from the Treasury Secretary. I wrote that a day ago, and the situation is unchanged.

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Comments & Outlook

Listening to Alan Greenspan testify before a Congressional committee in Washington yesterday, saying that current events were a once in a lifetime event that caused him to realize his fundamental beliefs in the financial system, and how to manage it, were wrong; I thought to myself, well that’s a good start.

If only we could believe the man who refused to permit the regulation of off-balance sheet liabilities, credit derivatives, offshore funds, private equity and hedge funds, which pretty much caps the problems the world faces today. The man was the poster boy for conflict-of-interest interests, ambiguity in communications and lack of transparency. He alone could have made a difference.

Alan Greenspan failed the people because he followed his duty to protect special interests. He cannot say to the world that he now sees the light and his training and earlier beliefs had misled him. What trash is that!

An alcoholic will never change, like the people holding authority to manage financial services and capital markets will never change. The need is to change the structure so that people can continue to act just like people, just with a different behavior.

With an alcoholic you remove access to the booze. With financial services, which are credit based, you remove the power to control asset markets. The conflict of interest principle must be eliminated wherever money and credit are involved.

To accomplish what is needed, I have been saying, will require a total destruction and rebuilding of the system known as banking. Bankers will fight tooth and nail against changing the status quo and will endeavor to continue to exercise their control over the lawmakers who are the only people among us who hold the power to introduce change.

This whole notion of change is at the core of the US presidential and congressional election to be decided in about ten days. Who among the candidates for President, Senate and House are capable of delivering on a mandate for change that the people so desperately need? Will there in fact be sufficient numbers among the successful candidates who will do their duty to liberate the people from the present system?

It’s hard not to be a skeptic because we all know that money talks. As a friend says, money starts wars and money ends wars. Bankers, not government and not the people, are the ones who print the money. Of course, government and the people over-spend, which requires money, and that is also at the core of the problem.

The bottom line then is that money – its creation and spending – must be brought under control, and the way to do that is to build a new financial structure that does not permit conflict of interest.

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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:

At least one RSI value <30:

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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 15: Dow 30 List

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

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

For a list of components to any ETF, go to the AMEX.com web site, and click on ETF's.

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10 (energy: XLE)

Table 2: Senior oil & gas equities

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15 (basic materials: XLB)

Table 3: Senior metals and steel equities

Table 13: Senior gold equities

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20 (industrial: XLI)

Table 4: Senior capital goods makers and transportation

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25 (consumer discretionary: XLY)

Table 5: Senior consumer discretionary equities

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30 (consumer staples: XLP)

Table 6: Senior consumer staples equities

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35 (healthcare: IYH)

Table 7: Senior healthcare equities

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40 (financial: XLF)

Table 8: Senior financial company equities

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45 (technology, semiconductor: SMH)

Table 9: Senior technology equities

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50 (telecom: IYZ)

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55 (utilities: XLU)

Table 12: US Utilities

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International Equity Market USD-denominated ETF Review

Table 14: International equities perspective

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Japanese equity market ETF: EWJ

Here is the Japanese (EWJ) equity market ETF Daily data charts:

Interactive EWJ Daily data:

Interactive EWJ Weekly data:

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U.K. equity market ETF

Here is the United Kingdom (EWU) equity market ETF Daily data charts:

Interactive EWU Daily data:

EWU Daily data:

Interactive EWU Weekly data:

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Canada's equity market

Here is the Canadian (EWC) equity market ETF Daily data charts:

Interactive EWC Daily data:

Interactive EWC Weekly data:

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Bonds & Yields Review

Table 10: Yahoo Finance U.S. Treasury Debt, Municipal and Corporate Bond Yields

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Here is the $USB 30-year Treasury Bond 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

Consumer Finance -USA -- Interactive Daily Data Charts

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Commodities Review

$CRB Index

Open Futures Contracts

Interactive Chart of Daily CRB Commodities Index:

Interactive Chart of Weekly CRB Commodities Index:

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Oil Review

Here is the e-miNY Mar-08 Crude Oil chart.

Interactive Chart of Daily Crude Oil:

Interactive Chart of Weekly Crude Oil:

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Gold & Precious Metals Review

Spot gold chart for the week

Interactive Chart of Daily Gold EOD Continuous Contract Index:

Interactive Chart of Weekly Gold EOD Continuous Contract Index:

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Spot silver chart for the week

Interactive daily data

Interactive Chart of Daily Silver EOD Continuous Contract Index:

Interactive chart of the Silver Bullion index.

Interactive Chart of Weekly Silver EOD Continuous Contract Index:

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Spot platinum chart for the past three days

Interactive Chart of Daily Platinum EOD Continuous Contract Index:

Interactive Chart of Weekly Platinum EOD Continuous Contract Index:

Interactive chart of the Platinum metal index.

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Spot palladium chart for the week

Interactive Chart of Daily Palladium EOD Continuous Contract Index:

Interactive Chart of Weekly Palladium EOD Continuous Contract Index:

Interactive chart of the Palladium metal index.

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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 13: Senior gold equities

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

CBJ 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:

Interactive Chart of Daily U.S. Goldminers Index:

Weekly U.S. Goldminers Index:

Interactive Chart of Weekly 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 Daily data:

GDX Weekly 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 Daily data:

Interactive Chart of XGD Weekly data:

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Forex Review

Here is the chart of the week's trading in the $USD.

Interactive Chart of Daily U.S. Dollar Index:

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Interactive Chart of Daily Euro Dollar Index, priced in USD:

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Daily British Pound Index:

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Daily Japanese Yen Index:

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Daily Canadian Dollar Index:

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Wrap-up