But, Friday will see the US House of Representatives vote of the Wall Street bail-out and the US Employment Report for September. Both could signal bad weather ahead.

As for yesterday, the DJIA (-19.59 -0.18% to 10831.07), S&P 500 (-3.68 -0.32% to 1161.06), and NASDAQ Composite (-12.93 -0.62% to 2069.40) were modestly soft as traders awaited the Senate vote on the bail-out package. DJIA futures are down -61 this morning after concerns set in re the House vote after the Senate voted 74 yay to 25 nay.

The Toronto Composite (-0.33% to 11714.51) and Venture Board (-0.59% to 1406.65) were also moderately soft.

The leading sector in NY was Financial (XLF +3.9%), which stands to reason as Wall Street recognizes the benefits of the bail-out package. The losers were: Industrials (XLI -2.4%), and Basic Materials (XLB -1.7%) and Energy (XLE -1.6%).

The leading industries were Airlines ($XAL +7.2%) as oil prices were well down, and Banks ($BKX +6.9%). Oil Services ($OSX -4.4%) was down.

The leading Cara 100 stocks were: GOL (+7.2%), GS (+5.1%), SLW (+4.0%) and WHR (+4.0%) to the upside and TCK (-9.2%), SU (-8.6%), ECA (-5.8%), IBM (-5.8%), and GE (-3.9%) to the downside.

GE fell as traders priced in the terrific deal that Warren Buffett got on his investment. Those valuable purchase warrants also have to be priced in so the stock could go lower here, but then represents a good value according to Buffett.

On the economic front, the Industrial Production data was very weak. Traders are concerned that such a low number could be further warning of the seriousness of the recession. Tomorrow's jobs data could embellish that concern.

The US Treasury market was pumped up on a safe-haven switch to debt. The long bond ($USB) lifted +0.88% to 118.20. That is a lot. Yields plunged again as traders are concerned about the failure by Washington to resolve the credit market issues.

The $USD gained +0.17% to 79.64, but this morning, following the Senate vote, it is soaring. At about 7:45am ET the Dollar was up +1.0% to 80.33 and the Euro down -1.4% to 138.90.

Crude Oil ($WTIC -$2.11/bbl to 98.53) and $GOLD futures (+$6.50/oz to 887.30) closed yesterday going in different directions. Oil is down on economic concerns and gold is u on the uncertainty in Washington and the likelihood of trillion dollar reflation programs.

This morning, the Asia-Pacific equity markets closed lower: All-Ords of Australia (-0.84% to 4774.1), Shanghai Composite (-0.16% to 2293.8), and Japan’s Nikkei 225 (-1.88% to 11154.8) were down moderately, also awaiting the outcome of the bail-out plan vote in Washington.

In Europe at 7:27am ET, the French CAC (+0.79%), German (+0.36%) and UK FTSE 100 (+1.45%) were higher.

The $USD (+1.0% to 80.33) and Euro (-1.38% to 138.90) showed extreme strength in the Dollar.

Spot prices at am ET for gold, palladium, platinum and silver were 86.92, 198.5, 994, and 12.24 respectively. These prices are very weak as the $USD is soaring.

Nov. Crude Oil is down -$1.27/bbl to 97.26.

So, for the most part it’s (possibly) higher prices for equities later this morning after a soft opening and a stronger $USD from the outset this morning. GE is down over -4% in the pre-market. But, we need to see how the House vote will likely go. If it looks like another defeat, the sell-off could be ugly. Watch the largest cap stocks like GE, WMT and XOM.

Tomorrow morning, the US Employment Report will likely show a loss of -110,000 or more jobs. That may be ignored as just the 9th straight monthly loss of jobs, but will surely bring more calls for a cut in the Fed rate. In other words, if the House vote is for approval, the Jobs Report will be played, for now at least, as a positive.

ADDENDUM at 8:55am ET: The ECB decided to maintain rates as is and that has lifted the LIBOR, which will put further pressure on equities as traders will now take safe haven in Treasuries. The Euro continues to fall, the $USD strengthen and crude oil/precious metals are getting hit. Oil is at 95 and spot gold at 855.

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Comments & Outlook

I want to see this bail-out bill defeated and better solutions put into place. A Resolution Trust Co 2 could be established immediately. I want independent and objective high-profile people to make such important decisions – not the Treasury Secretary and the Fed.

If you wonder why I feel so strongly about this, ask yourself why IndyMac, WaMu and Lehman were taken over and Fannie, Freddie and AIG were saved. This is Wall Street backroom stuff and in-your-face politics. It is all evidence the capital markets are not free and I will express my views that more intervention by the people who caused this crisis and who stand to benefit is the last thing America or the world needs.

There is a better way.

When I look at the lips of Senators Obama and McCain moving on this issue, I know they are bought-and-paid-for by Wall Street. It makes me sick there isn’t a candidate who will stand up for the people.

In any case, traders like me get over it. This weekend, I shall add to my list of 36 candidates for purchase in the new Bull market.

As you know, my portfolio weightings are 40% long stocks, 40% short puts, and 20% gold and silver stocks. If the market tanks following this weekend, or on Friday if the House votes during the market session to reject the bail-out bill, those short puts may get exercised unless you carefully select deep out-of-the-money strike prices. If you do get goldminer stocks put to you, you ought to continue to hold those.

The latter point is important because if there is a market shock in the days ahead, the required action by monetary authorities will be so extreme that ultimately gold prices will soar. So, if you do have to raise cash, do so in the defensive stocks that get put to you.

If you do get stock put to you, you would immediately have to sell some of that stock, but you will end up with a portfolio that has a lower cost basis. On the other hand, if the market rallies hard through next week and beyond, you can hold those short puts to expire worthless, meaning your income is significant. You can then roll over the cash into more short puts or some new long stock positions, depending on your need for income.

But avoid Treasuries and also corporate debt unless it is well backed and carries a convertible feature.

Yes, I am bullish, and yes I am conscious of the economic and financial perils facing the world today. With respect to the latter, I cannot ignore the extreme actions being taken in coordinated fashion by international finance ministers and central bankers.

As a pragmatist, I do not bet against these interventionists. If this were a free market – but it’s not – my DJIA/NASDAQ target of 10000/2000 would likely be exceeded on the downside. But the market is controlled, and we need to deal in realities.

Have a good day. I know I will. In fact, I put on my bathing suit to start this report and will finally now get to spend some time on the beach before the market opens. If you happen to be at Cable Beach Sandals Resort, you can wave. I’ll be the swimmer with a happy face about 100 feet to your left.

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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