However, today in the international markets, there has been a broad based sell-off. Particularly hard hit were Japan (-5.0% to 8577.0) and Hong Kong (-2.5% to 13968.7). The UK FTSE and German DAX are down -2.1% at 7:50am ET this morning (vs -1.8% two hours earlier).

Yesterday, the DJIA +189.73 +2.11% to 9180.69), S&P 500 (+24.0 +2.58% to 954.09), and NASDAQ Composite (+1.31 +2.49% to 1698.52) reflected a closing rally. Once again, “there have been some pretty strange end-of-day market moves for the past week in NY”.

Yesterday, the Toronto Composite lifted +354.7 +3.73% to 9856.21, while the Venture Board lifted +21.4 +2.50% to 879.75.

There were no sector losers yesterday in NY. The Utilities (XLU +5.6%), Energy (XLE +4.6%) and Consumer staples (XLP +4.2%) were the rally leaders. Volume was modestly higher, but not strong.

Among industry groups, the Airlines ($XAL +10.7%) and Goldminers ($XAU +5.9%) were big winners. As the gold price stays under pressure; $XAU will likely fall today.

$GOLD dropped down to 738.50 at the close of futures trading. The spot market continued to sell through the day, and overnight. At 6am ET, gold, palladium, platinum and silver were at 724.50, 195, 791, and 9.29, which is down for gold and platinum and up for palladium and silver.

For shares of Cara 100 companies, there were 89 higher and 11 down on the session. The winners were VCP +24.1%, MBT +23.0%, GOL +22.2%, and DB +18.9%. Of the losers, only GS -6.7% and TGT -5.6% were notable.

Yesterday, in discussing Kookmin Bank (KB) of South Korea, which would have been a beneficiary of the $30 billion Fed aid to the country, I remarked that “KB will be just fine”. KB was up +14.8% on the day.

The $USD (+0.18% to 84.78), $CDW (+1.50% to 82.66), $XBP (+0.71% to 164.67) were up on the day, while the $XEU (-0.10% to 129.45) and Yen (-1.39% to 101.43) were down. The Yen pulled back as funds were pulled out of equities during the day, despite the rate cut by the Bank of Japan.

The US long bond ($USB -0.62% to 114.31) dropped as yields lifted. But the big news on the day was the credit market squeeze. The US T-Bill yield dropped further to -0.375% from 0.565% the day before and 0.750% the day before that. Every time that the yield plunges like this there are concerns raised about cash shortages among certain banks.

Yesterday, as the T-Bill rate fell to 0.565%, I stated that “(this) shows more doubts about inter-bank lending”.

At 8:20am ET, the spot price of gold, palladium, platinum and silver was: 729.88, 189, 798, and 9.37, respectively, which shows a modest strengthening since 6:00am.

The $USD has strengthened from 84.665 yesterday morning to 86.525 today. The Euro has weakened from 131.32 to 127.19. That is a major move, which doesn’t bode well for precious metals or oil. Crude Oil futures this morning are at 67.46 vs 68.65 yesterday morning.

This morning at 8:22am ET, the DJIA futures have moved down -141 to 9085. It appears that equity prices will be weak off the top, but it will be the final hour today (and for the month) that counts. Many Asia-Pacific markets have suffered their worst month in history. All in all, the Bears have been winners in October, and the banks still appear to be having problems despite bail-outs and capital injections.

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Comments & Outlook

After Wednesday’s session, which was boosted by huge rallies in Japan and Hong Kong due to the $60 billion Fed aid to South Korea and Singapore, I stated yesterday morning, “I am not yet convinced the US market is ready to soar, but the pivot point is looking more and more like it’s based on the election results. As I stated here yesterday, I think the real big money is staying on the sidelines until the managers see the results of the US election next Tuesday.”

What was concerning me was the action of the Financials on Wed. XLF had plunged -6.2% and the yield on US 3-month T-Bills had dropped into the danger zone from 0.750% to 0.565%. There was a report that HB&B was short of cash.

Then yesterday, after a strong day where only 11 or the Cara 100 were negative and all ten sectors were strong, I noted that Goldman Sachs shares (GS) plunged -6.7%. I think the cash squeeze is happening at Goldman Sachs and I also think, without proof, that they started selling oil and gold yesterday about 8:15am ET. By the time I had finished publishing the CC and DR reports shortly afterwards, I started our firm’s trader squawk box noting that gold (and oil) had just broken the recently established bullish trendline. What happened for the next couple hours was that gold and oil contracts tanked. I think this is forced selling.

So, volatility is huge, and the nexus seems to me to be Goldman Sachs. There is stress there that is apparent but not explained. The problem, as I see it, is rooted in hedge fund redemptions, particularly commodity related. Hence, I would not at this point listen to a word the Goldman Sachs analysts or spokespeople have to say about commodity prices.

Here in Nassau Bahamas, for those more interested in the weather, the winds are down but expected to pick up to about 24 mph out of the NE again, bringing overcast conditions. High will be 80 degrees. It’s totally clear this morning, but may possibly rain this evening.

Trick or treat. Watching the US T-Bill yield, like the weather, I don’t know what to expect.

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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