Yesterday, and earlier today, the international equity markets have been trashed. The world index of equity prices ($DJW) yesterday sank -7.1% in a single day. Few people, except the day-trading short-sellers, are happy.

In NY, the DJIA (-733.08 -7.87% to 8577.91), S&P 500 (-90.17 -9.03% to 907.84) and the NASDAQ Composite (-150.68 -8.47% to 1628.33) were smashed as traders fled from risk.

The Toronto Composite and Venture Board followed. The Composite index sank -631.8 -6.35% to 9323.85, while the Venture Board dropped -63.5 -6.02% to 991.21. Many of the important stocks in Canada, large cap to well-promoted penny stocks, are registered for trading in the US, where prices yesterday crashed.

Earlier in the day today, international markets were, like NY, caught in a massive sell-off: Australia (-6.7% to 3988.1), Shanghai (-4.3% to 1909.9), Hong Kong (-4.8% to 15230.5), India (-2.11% to 10581.5), and Japan (-11.4% to 8458.5) were smashed.

Japan, which is by far the most important Asia-Pacific market, plunged -11.4% on the session, but in the three days it has been open this week, the Nikkei Dow is still up about +3.8%, which in itself would be a remarkable weekly gain in normal times.

At 7:22am ET (5:40am ET in brackets), France -3.5% (-3.8%), Germany -2.2% (-2.7%) and the UK -3.0% (-3.2%) were down, but showing a slight improvement after Citigroup reported (another loss, but not as bad as feared).

In NY yesterday, the best performing sector by far was Consumer Staples (XLP +3.4%), while the losers were: Energy (XLE -14.4%), Basic Materials (XLB -12.4%), Consumer Discretionary (XLY -11.6%), and Financial (XLF -10.9%).

Among industry group movers, the Airlines ($XAL -3.4%) dropped the least, while Oil Services ($OSX -16.6%) and Big Oil ($XOI -14.7%) Broker-Dealers ($XBD -12.4%), NatGas ($XNG -15.1%) were the most depressed. The Goldminers ($XAU) dropped -11.4%.

As for the Cara 100, there were just two lonely winners: (a Cara favorite) DNA +3.1%, and KO +1.1%. There were 98 losers, seven of them down at least -21.3%, most of them Brazilian: GGB -24.7%, RIO -23.8%, PBR -23.1%, GOL -22.1%, BBD -21.8% and TS (Argentine-Brazilian) -21.3%, plus Canada’s POT -21.6%.

It was a crazy day in the bond market. The US long bond dropped -0.46% to 114.25, even though yields were falling across the board.

The $USD gained +0.89% to 82.09, and the Euro lost -0.90% to 135.13. The Yen gained +1.75% to 99.87, which is a gain on the week. The Pound (-0.73% to 172.88) and the Cdn Loonie (-1.93%) both crashed.

Yesterday, the price of Crude Oil ($WTIC) dropped -0.17/bbl to close at 78.78, but this morning at about 6:00am ET, the Oil futures were down to 72.71.

In the other futures this morning, the $USD and Euro were at 82.56 and 134.63 respectively. $GOLD had dropped to 838.5.

Presently, at 7:54am ET (vs 5:49am ET today), the prices for gold, palladium, platinum and silver: 831.51 (836.51); 183; 913; and 9.99. The latter three prices remain unchanged for the past two hours.

The DJIA futures at this time are at 8518 (+14), although two hours ago, the level was 8530. Also, the $USD has softened a bit over the past two hours to 82.35.

In Europe at 7:45am ET (vs 7:22am vs 5:40am), the French CAC -3.8% (-2.8%) (-2.1%); German DAX -2.6% (-2.6%) (-2.1%) and UK FTSE 100 -3.4% (-3.4%) (-3.0%) shows growing weakness, but traders there are waiting on the US to play its hand.

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Comments & Outlook

Today the Swiss government injected $5 billion into UBS and the Swiss National Bank bought almost $55 billion in UBS’ toxic assets. A couple days ago, the UK government did the same for HBOS and Royal Bank of Scotland, while Germany did the same for Deutsche Bank. In the US, the Treasury and Fed have arranged a quarter trillion dollars in support for a select group of America’s biggest banks.

Why the panic bail-outs? The answer lies in the $55 trillion dollar Credit Default Swap market that is unraveling day to day. Banks and central banks are totally focused on the breaks to the credit ring when up to $400 billion of Lehman Brothers CDS obligations come due in the next week, with nobody at the teller window to pay up. Lehman Brothers is, as you know, bankrupt.

What this means is that unspecified banks holding the Lehman CDS derivatives will get nothing, and then they will be unable to meet their obligations to other banks. At stake are the Money Market Funds on deposit in these banks. The entire system could collapse, so banks do not want to be in the position of lending to one another. The credit market has failed.

Economists like Roubini and Feldstein and so many others have no clue what they are doing in setting fires here. If you listen carefully to their rants of economic forces coming to bear to form a perfect storm that can only result in another Great Depression, you will not hear an iota of news. We heard all their theories – the precise same ones – three months ago and more, when the credit ring had not broken because Lehman Brothers had not yet failed, and equity markets were much stronger.

So, what these economists are doing, at this point in time, is almost criminal.

Have you failed to notice that Bloomberg TV is not interviewing the leading bankers who do know what is going down within their walls today. These bankers do not want to talk like the former CEO of now dead Lehman Brothers, Dick Fuld, who told the world that his bank was strong when just a couple days later it filed bankruptcy.

Fuld didn’t know how quickly the CDS failures would take down his bank, and now his peers on Wall Street are keeping their mouths shut. Bloomberg reporters are missing the story. But think about it: how is it that finance ministers and central bankers can together inject over $1 trillion into banks in the past week and yet have these few major banks still not lend to one another and still have their stocks teeter on collapse?

This is not an economic story; it’s a financial story that is centered in the viability of the largest banks of the world. These banks are calling loans of hedge fund clients and selling holdings like oil and metal futures. Risk taking has died, and these banks are responsible.

Now, what to do? As I continue to say, keep your head clear of all that crapola you read and hear from mainstream media. They are merely facilitating Speaker’s Corner for every Tom, Dick & Harry who is touting his book or his high-priced banquet speaking engagements. Watch, instead, the price and volume data series for the three biggest banks in the world that control well over 90% of the CDS market: JPMorgan Chase (JPM), Citigroup (C), and Bank of America (BAC). Several months ago, I listed the extent of their CDS involvement in these pages. Nothing’s changed except Lehman Brothers has failed, and the financial system has moved to the brink of collapse. It will be saved; the only issue is how big will be the burden on future generations.

Watch this chart of the Big 3 players in the CDS market and you will see that Lehman Brothers started to look shaky at the start of May, which caused a plunge in the share prices of the Big 3 until Lehman was forced to declare bankruptcy and Henry Paulson needed to appeal to Congress and the G-7 for emergency help. The fact the crisis was sold to the public as an economic issue and not a crisis and bail-out of the banks was another criminal act. These people must think they control all media, but the truth in time comes out.

Following the start of the bail-outs in July the share prices of the Big 3 banks have been volatile, but side-tracking, while other key non-bank stocks have been trashed as no-nothing media Talking Heads ran their mouths. The result is that the pensions and other holdings of Mom & Pop have been hammered beyond all comprehension, and I sit among you saying keep your head about you, there is a turn at the cycle bottom and a new Bull is being born from the injection of mega-trillions from all governments and central banks.

This crisis will soon be over – but first the bankers must show us they have survived the next wave of CDS obligations coming due this week and next. The answer will be in the share prices of JPM, C and BAC. Don’t watch anything else for the answer to how this crisis will be played out this month. Here is the chart again.

I think it is the best judgment at this point in time to wait until the share prices of these banks show a rebound. Then jump on board the equity market rocket. There will be another lift-off, and there are many stocks – I have listed over 100 – that will be passengers on what will be seen as another moon-shot. One of these events will result in the new Bull market being as obvious to you all as it is to me today.

The weather here in Nassau is rather nice, although a bit breezy. The few tourists are enjoying themselves -- wedding parties mostly. A year or so from now, there will be additions to these new families, and life will go on.

Have a good day.

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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