Yesterday, the DJIA -231.77 -2.50% to 9033.66), S&P 500 (-30.35 -3.08% to 955.05), and NASDAQ Composite (-73.35 -4.14% to 1696.68) were smashed, particularly in the final hour. In the previous six sessions, the DJIA had been up +9.64%.

The Toronto Composite sank -455.6 -4.44% to 9795.8 and the Venture Board dropped -1.58% to 969.39.

While only a day ago I wrote that life has taken on a different perspective, it’s more accurately seen today as a thoroughly confused one. At this point, equity markets are no longer fair value pricing mechanisms and it’s unfair to use terms like Bull and Bear. This market is about day to day panic and relief.

Earlier in the day today, international markets tumbled as well: Australia (-3.09% to 4120.1), Shanghai (-3.20% to 1895.8), Hong Kong (-5.15% to 14266.6), India (-4.81% to 10169.9), and Japan (-6.79% to 8674.7) were smashed. Particularly devastating to traders was the slide in the Nikkei 225, and the run-up in the Yen, which will put more pressure on the auto exporters there.

In Europe at 7:50am ET, the French CAC -4.1%; German DAX -3.7%; and UK FTSE 100 -4.0% followed Asia-Pacific equity markets down.

The sector leaders in NY yesterday were losers: Healthcare (XLV -0.3%) and Industrials (XLI -0.9%). The worst losers were: Tech (XLK -5.2%); Energy (XLE -4.5%); and Basic Materials (XLB -4.2%).

Among the industry groups, the Goldminers ($XAU -9.9%) stumbled after being up +10.7% the previous day. That was a reaction to the soaring $USD. Computer Hardware ($HWI -7.8%) and Networks ($NWX -6.5%) were hammered as well because of the soaring $USD because these US manufacturers count on foreign sales, which the $USD rally will hurt, both in product demand as well as currency conversions for repatriated profits. The earnings reports (see Apple AAPL) were not that bad.

The US long bond ($USB +1.49% to 115.17) was stronger as yields came down due to the influx of $USD from abroad as traders sought the safest havens. But, credit markets also eased as LIBOR fell. The US T-Bill yield lifted from 1.02% to 1.095%, which was another big move that shows the banker bail-out packages are starting to have some effect. Still, the Fed will have to narrow the gap between Fed Rate and market yield on T-Bills.

Among the Cara 100, following a day where there were 94 gainers and 6 losers, yesterday there were only 8 winners. The leader was Options Express (OXPS +14.0%). Leading the losers was Millicom International (MICC -33.3%), which is a volatile trader at the best of times and admittedly one of the riskier Cara 100 selections.

But volume was small again as traders are freezing up.

Yesterday morning I opined following the big equity market rally the previous day, “With the strength in the $USD today, however, there will likely be some profit-taking.” There was.

In futures this morning, the $USD is even stronger, rallying presently to 86.115. The Euro has fallen to 128.33.

Crude Oil futures have dropped below $70/bbl at 69.56. Dec. Gold is $751.56.

The prices at 8:11am ET (vs yesterday at this time) for gold, palladium, platinum and silver are weak, at: 750.42 (778.26); 176 (181); 851 (897); and 9.76 (9.78). As stated yesterday, the “US Dollar strength is pushing down on these prices. There is support for gold at 740-750”.

The DJIA futures at this time are at 8869 -166, which hasn’t dropped that much from yesterday morning, but is weak nonetheless.

Earnings Season in the US has kicked into high gear, with mixed results. Traders responses to the news are interesting. No further comment as the bigger financial system crisis picture is the one under greatest scrutiny.

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Comments & Outlook

The final hour of trading in New York yesterday was a clear sign that traders are tense. The unprecedented $USD rally is causing international trade in goods and services as well as securities and commodity markets to freeze.

The problem is lack of confidence by traders who know the system is broke and that governments have been trapped into banker bail-out decisions rather than actions to address the problem source. Yesterday, for instance, the People’s Bank of China started on its own trillion dollar banking bail-out with $140 billion slated for the Agriculture Bank. Countries like Argentina moved to take control of the people’s pensions from the private sector before these funds have been squandered and the people revolt against government.

In a nutshell, the banking system has collapsed under the weight of its own stupidities during the past decade. Fearful of the bankers’ actions in squeezing undermargined accounts, independent traders are selling global holdings and moving to the best safe-haven they know, which is the $USD and the repayment of loans. The Japanese equity market is collapsing as the Carry Trade winds down. Money there is flowing out of equities into Yen and the repayment of loans.

Yesterday alone the $USD (1.56% to 84.37) and the Yen (+1.23% to 99.68) trounced all other currencies. The Euro ($XEU -2.01% to 130.77), Pound ($XBP -2.53% to 167.30) and Cdn Loonie ($CDW -1.55% to 82.57) all plunged. To relieve the stress, the Federal Reserve Bank will likely have to cut its rate by 50 basis points today rather than wait until next week.

The core of the problem is that the bankers who caused these problems and the regulators who permitted them to build to the point of collapse are the same people who are advising the international finance ministers. The latter have caved in and are stripping the peoples’ treasuries in order to prop up the failed banking system. The intelligent move would be for governments to freeze currencies and work together to construct a whole new structure for global finance and regulation.

Sadly, the bankers are in control. As a consequence, nothing good will come of the present situation. Trading and commerce as we know it will stop. Governments have to realize that no amount of money is going to stave a crisis because it is power that the bankers are demanding. The people are in the process of throwing their hands in the air and giving up. Rally one day, crushing losses the next – it’s all too much.

The $USD cannot continue to rally here or else the parts of the global financial system that are working will shut down. Traders will stop taking risk, and will repay their loans. The underground economy will take over and governments will seize up under the loss of tax receipts. Labor strikes and violence will ensue.

This is not a good way to end a commentary that wishes you a good day. However, enjoy your day; just try to keep your wits about you.

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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