STOCK MARKET WATCH, Monday November 5

Source: du

STOCK MARKET WATCH, Monday November 5, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 443 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2486 DAYS
WHERE'S OSAMA BIN-LADEN? 2206 DAYS
DAYS SINCE ENRON COLLAPSE = 2167
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES

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AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON November 2, 2007

Dow... 13,595.10 +27.23 (+0.20%)
Nasdaq... 2,810.38 +15.55 (+0.56%)
S&P 500... 1,509.65 +1.21 (+0.08%)
Gold future... 808.50 +14.80 (+1.83%)
30-Year Bond 4.60% -0.05 (-1.10%)
10-Yr Bond... 4.29% -0.07 (-1.61%)






GOLD, EURO, YEN, Loonie and Silver

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PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact actionpost@legitgov.org

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

BY TIM W. WOOD

In the wake of the recent Fed meeting and the worldwide attention that it seems to gather these days, I want to address once again the Fed and the Discount rate, but I also want to address manipulation.

First of all, I want to readdress the fact that despite popular opinion, the Fed follows the lead of the short-term credit markets. The Trend Indicator on my Fed model turned down in June, before the first rate cut occurred. This downturn told us that we had entered into an environment in which future rate cuts should occur. As the equity markets began to decline into August, so did short-term interest rates. In fact, the 3-month T-bill yield went from just over 5% earlier in the year to 4.63% in mid-August. This widened the spread between the Discount rate and the 3-month T-bill rate to 1.62%. It was at this time that the equity markets began to get hit and the Fed stepped in to make the Discount and Fed Funds rate cuts. The spin was and continues to be that they are doing this to support the equity markets. Bologna! They are doing this because the short-term credit markets are forcing them to. They want you to believe that they are doing this to support the equity markets. Thereby, their greatest tool is this perception. If one takes the time to actually stop and study the relationship between the short-term credit markets, the Discount rate and the stock market they would be far better off than just buying the garbage that they hear on TV.

http://www.financialsense.com/Market/wrapup.htm

Oh sure, with this highly regulated market, trustworthy administration and banks that would never lie to anyone, there's no manipulation, LMFAO!!!

10:00 AM ISM Services Oct
Briefing Forecast 55.0
Market Expects 54.0
Prior 54.8

http://biz.yahoo.com/c/ec/200745.html

VIENNA, Austria - Oil prices fell more than $1 a barrel Monday as traders pocketed gains from the previous session's record settlement.

The release of eight Turkish soldiers by Kurdish rebels Sunday also contributed to the decline, easing some concerns about whether Turkey will launch attacks on guerrilla bases in northern Iraq. Escalating tensions in the Middle East could disrupt oil supplies out of the region.

-cut-

Light, sweet crude for December delivery dropped $1.52 to $94.41 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange.

The contract had risen $2.44 on Friday to settle at a record $95.93 a barrel after trading as high as USS$96.05 — short of a trading record of $96.24 a barrel set Thursday.

http://news.yahoo.com/s/ap/oil_prices

SHANGHAI, China - PetroChina became the world's first company worth more than $1 trillion on Monday, surging past Exxon Mobil as the Chinese oil producer's shares nearly tripled in their first day of trading in China.

State-owned PetroChina Co., a unit of state-owned China National Petroleum Corp., is the country's biggest oil and gas producer. Its Shanghai initial public offering of 4 billion shares raised $8.94 billion — a record for a mainland bourse.

Adding the value of PetroChina shares traded in Shanghai, Hong Kong and New York — and those still owned by the government — the company's total market capitalization ballooned to just over $1 trillion, compared to Exxon Mobil Corp.'s $488 billion.

However, more than 85 percent the shares outstanding — 157.9 billion shares — are held by PetroChina's parent company CNPC and are unlikely to trade in the market any time soon.

http://news.yahoo.com/s/ap/20071105/ap_on_bi_ge/china_petrochina_ipo

VIENNA, Austria — Oil prices fell more than $1 a barrel this morning as traders pocketed gains from the previous session's record settlement.

The release of eight Turkish soldiers by Kurdish rebels Sunday also contributed to the decline, easing some concerns about whether Turkey will launch attacks on guerrilla bases in northern Iraq. Escalating tensions in the Middle East could disrupt oil supplies out of the region.

Optimistic supply news also helped bring prices down. Vienna's PVM Oil Associates reported that Iraqi crude exports were up by nearly 200,000 barrels a day in October at 1.84 million barrels a day. And, said PVM, Russian oil output was reported up 0.6 percent last month compared to the previous month, marking "a new post-Soviet high" of 9.93 billion barrels a day.

But prices remained supported by a tight supply-demand balance heading into the Northern Hemisphere winter, said Tetsu Emori, commodity markets fund manager at ASTMAX Futures Co. in Tokyo.

"Profit-taking should be the main factor moving the market today," Emori said.

http://www.chron.com/disp/story.mpl/business/5273628.html

I think there might be a tad bit of speculation when the release of 8 Turkish soldiers can effect the price of oil.:sarcasm:

NEW YORK - Citigroup Inc. shareholders may have finally gotten what they wanted — the resignation of Chairman and Chief Executive Charles Prince — but Wall Street's worries are far from over.

At an emergency meeting of the Citi board Sunday, the nation's largest bank announced Prince's widely expected departure, but also estimated it would take additional losses of $8 billion to $11 billion. In the third quarter, it already took a hit of $6.5 billion in asset mark-downs and other credit-related losses.

Meanwhile, the company remains entrenched in a mire of off-the-books investment vehicles funded by risky debt. Citigroup may need to take the fall for them if they fail.

And Citigroup's not alone in its debt problems. When borrowers with poor credit stopped paying their mortgages, many banks not only had to take losses on those subprime mortgages, they also saw instruments in their portfolios backed by mortgages plummet in value. No one knows how much longer home prices will keep slumping, and whether problems related to the housing market will start affecting other types of consumer debt.

http://news.yahoo.com/s/ap/20071105/ap_on_bi_ge/citigroup_ceo

http://www.nytimes.com/2007/11/05/business/05citi-web.html?_r=2&ref=business&oref=slogin&oref=slogin

The board of Citigroup today accepted the resignation of its embattled chairman and chief executive, Charles O. Prince III, and appointed Robert E. Rubin, the former Treasury secretary, as its chairman, according to a person briefed on the situation.

At an emergency meeting held today at the bank’s Park Avenue headquarters, the board also appointed the chairman of its European operation, Winfried Bischoff, as its acting chief executive, this person said.

Citigroup will also announce tomorrow that it will take another $8 billion to $11 billion in write-downs, this person said. That would be in addition to the $5.9 billion that it wrote down in early October, when it reported third-quarter results.

The appointments are intended to reassure Wall Street while the board looks for a successor to Mr. Prince, whose resignation came after the company suffered major losses as a result of its large exposure to bad loans and mortgage-related securities.

more...

http://quotes.ino.com/chart/?s=NYBOT_DX&v=i

Last trade 76.413 Change +0.094 (+0.12%)

US Dollar Fails to Respond to Payrolls Number: What Gives?

http://www.dailyfx.com/story/bio1/US_Dollar_Fails_to_Respond_1194037735537.html

Next to the Federal Reserve’s interest rate decision, non-farm payrolls was the most anticipated event risk this week and it did live up to its reputation of being market moving, particularly on an intraday basis. However the reaction in the US dollar was not what everyone expected; it has puzzled most traders who wonder why a number that doubled expectations could have sent the US dollar to a fresh record low against the Euro and Canadian dollar. The US dollar did rise in the seconds after the release, but the move completely reversed within five minutes. Theoretically the sharp rise payrolls should give the Federal Reserve more reason to keep interest rates unchanged even though the underlying details of the report were somewhat softer. The breadth of job gains (also known as the diffusion index) and average hourly earnings were weaker than expected. The unemployment rate on an unrounded basis also increased from 4.696 to 4.727 percent. Yet these details are probably not the reason why the dollar fell because they do not have the significance to offset the blowout headline number. Instead, the price action in the market today reflects everyone’s unwillingness to buy dollars. Those who want to be long are already long and any “new” positions being taken are mostly on the short side. If the US dollar can’t rally on strong economic data, what will it rally on? We think that the dollar’s rally will come to an end only when the Federal Reserve ups their degree of hawkishness or the European Central Bank cries uncle and finally warns that the Euro’s rally has become too excessive. We may actually get part of this opportunity next week when Bernanke testifies before the Joint Economic Committee. Besides that, the only numbers worth watching in the US are service sector ISM, the trade balance and import prices. At this point, a move up to 1.50 in the EUR/USD is still more likely than a move back below 1.40.

...more...

Dollar: End of Non-Stop Selling?

http://www.dailyfx.com/story/topheadline/Dollar__End_of_Non_Stop_Selling__1194242392086.html

The EURUSD finally took out the 1.4500 figure, but US economic data was far more dollar friendly this week than at anytime in the past month and as we noted on Friday, “We continue to believe that the EURUSD is near the end of its current rally and while it may make another run at the 1.45 figure, any additional gains going forward are likely to be small and slow.”

One reason for our skepticism is the decidedly positive slew of economic reports that hit the screen last week that refute the dollar bearish notion that US economy is on the verge of a recession. US GDP, for example printed a far better than expected 3.9% while Friday’s Non Farm Payrolls report nearly doubled the expected 88K print by recording a gain of 166K new jobs. While these are hardly blockbuster numbers, US economic news suggests that the growth remains remarkably resilient despite the troubles in the housing and the finance sectors. The data therefore indicates that there is little need for further easing from the Fed for the rest of the year, and as markets begin adjust to more neutral Fed monetary policy, the relentless dollar selling should come to a halt.

Next week the ISM Non-Manufacturing number will take center stage on Monday with markets looking for only a small drop from the month prior. The data for the services remains comfortably above the 50 boom/bust level and therefore should only elicit minor interest from the market. The end of the week brings the Trade Balance, expected to improve, and an updated reading of U of M Consumer sentiment data. Given the fact that employment data surprised to the upside, consumer sentiment should improve as well. In short there is nothing on the docket to prevent a possible dollar rebound this week, but dip buying euro bulls may have other ideas – BS.



...more...

of lowered expectations:spray: So that's what they meant.:think: I thought the neocons were talking about education and minorities.

to payroll numbers... The payroll numbers (not to mention the GNP numbers) were finally too blatantly false for even the most blinkered investor to believe. Once they decided that the gov't was lying about those, they started wondering about everything else, too.

http://news.yahoo.com/s/ft/20071105/bs_ft/fto110520070650281797

Oil prices retreated on Monday after hitting a record above $96 a barrel on Friday while gold held above the key $800 level amid renewed concerns about the outlook for the US economy after Citigroup (NYSE:C) became the latest investment bank to report gigantic losses related to the sub-prime crisis.

Nymex December West Texas Intermediate dropped $1.53 to $94.40 a barrel after reaching a record $96.24 during Thursday's session, while ICE December Brent slipped $1.39 to $90.69 a barrel.

Hedge funds and speculators significantly increased their net long position in the crude market (betting on further price gains) in the week to October 30 when prices hit $90.38, according to the latest data released by the Commodity Futures Trading Commission. The net long position jumped 38.5 per cent to 83,120 lots.

With huge interest in the outlook for prices and whether oil will push on to the $100 level, traders are paying close attention to any details of shifts in investor positioning.

"We seem to be getting more short-covering driving prices higher lately," said analysts at Cameron Hanover; "(Oil) prices seem destined to make an attempt on $100, but it is less certain if that will bring in fresh selling just before we get there. If longs start to liquidate, we could get a stampede for the exits."

Gold held above the $800 level at $801.55 a troy ounce after reaching a fresh 28-year high of $807.70 during Friday's session. Gold's appeal as a safe haven was in focus after citigroup became the latest bank to report losses due to the sub-prime mortgage crisis.

...more...

Does anyone else find it interesting that they (those that attempt to justify oil's price) always talk about "adjusted for inflation" oil is cheap?

Where are the "adjusted for inflation" numbers on gold? To my calculations, gold should be around $2,500 an ounced "adjusted for inflation". Just sayin'. :eyes:

NEW YORK — An ounce of gold last week reached $800 for the first time since 1980. Here are some questions and answers about what the 27-year high in gold prices means for consumers and investors.

Q: How will rising gold prices affect the average consumer?

A: Not a whole lot. Some jewelry retailers, especially small ones, might have to pass along some of the higher costs to consumers in order to make a profit. It's important to note, though, that craftsmanship accounts for jewelry pricing more than raw materials do. Gold is used in small amounts in electronics, too, but not enough to affect price tags noticeably.

Growing demand for gold jewelry in India and China is one reason gold prices have increased over the past several years. Other reasons include the falling dollar and the fact that the commodities markets have become popular for speculators.

What affects people more than surging gold prices is the rise in prices of everyday commodities, like oil, corn and industrial metals. The weakening dollar is also a concern for Americans, because it makes international travel more expensive and could start making imported goods pricier.

http://www.chron.com/disp/story.mpl/business/5269264.html


This is a little Q&A primer...just thought I throw it in for new lurkers. But just remember-the gov has seized gold in the past and by law can seize it anytime they damn well please. Use caution. Scoundrels abound. IMHO-folks will flock to gold until they realize that it just 'keeps up' with inflation-it doesn't beat inflation....and that is what you want

:donut: and lurkers. Talk about a shock yesterday....It has been over 2 wks since I filled up at 2.54. At our cheapest place near me it is now @.79. I think that sets some kind of record here. I did manage to scout out another cheap spot that was 2.69. I filled up. Hope that will last a while. I am pretty frugal but just the last 2 months I have been hit with a $30 rent increase, a 3cent per KWH electricity increase, outrageous gas increase, and I don't shop much at the grocery store due to the gigantic price increases. I know all this totals way above the 2 point or 3 point what ever they say inflation is. I feel squeezed and I don't have nearly the problems other folks have. And when I look at the politics going on, I just want to cry. I won't say that the DEMs have reached the same level of disgust that the GOP has, but I am just saying that I am thinking this GOP/DEM is just another artificial divide to control us. I'm thinking once we get a DEM majority that we start cleaning the DEM house....We keep some of these clowns in to protect us, but I think maybe they haven't been doing such a good job of representing THIS DEM. Maybe when we get a comfortable majority, we need to be looking at changing some of our leaders and their pitiful voting records. I guess I just want to echo the sentiment...I just wish the DEMs would grow one ball....That's all I'm asking for, one ball.:eyes:

Happy Hunting and watch out for the bears.

Most have slowly filtered down to the low $3.0x range.


And I'll second that call for the ball.

esp. health-wise due to our large number of refineries. We tend to rise slowly but we decrease VERY slowly.

and the situation in Pakistan add up to a not good situation IMO. The markets don't like instability. Might lead to a wild ride today!

Things are beginning to change. Now, just about everyone is on the crash cart.

http://www.kitco.com/ind/silberman/nov012007.html

--snip--

The reason for the under performance in almost every paper currency is due to competitive currency devaluations.

Whilst the world remains US centric and everyone wants to supply us with their goods and services, foreign countries would prefer keeping their currencies as low as possible in order to capture a competitive trading edge.

In an effort to cheapen their currency they print even more than the US Federal reserve does. And the Fed is printing 13% more currency every year! Supply and Demand. Today nobody wants a strong currency and hence all paper money is devaluing against Gold – whose supply cannot be manipulated.

--snip--
The Gold price trends against 4 major currencies:

http://www.the-privateer.com/chart/g-multi.html

Dow 13,479.67 115.43 (0.85%)
Nasdaq 2,776.33 34.05 (1.21%)
S&P 500 1,494.63 15.02 (0.99%)
10-Yr Bond 4.313% 0.022

NYSE Volume 97,153,593.75
Nasdaq Volume 78,122,343.75

08. Mishkin: Rate cuts aimed at reducing economic risks
9:00 AM ET, Nov 05, 2007 - 36 minutes ago

09. Mishkin: Markets must do hard work of repricing value risks
9:00 AM ET, Nov 05, 2007 - 36 minutes ago

10. Mishkin: Fed must be ready to reverse if inflation flares up
9:00 AM ET, Nov 05, 2007 - 36 minutes ago

11. Mishkin: Fed helping Main Street, not Wall Street
9:00 AM ET, Nov 05, 2007 - 36 minutes ago

When has the Federal Reserve been directly responsible for flooding capital toward Main Street without using Wall Street firms as the designated go-between?

to try this comedy skit out in the Catskills before he takes it out on the road. I don't think main street is buying it:spray::rofl:

What's good for the corporation is good for me....
What's good for Wall St is also good for me....
Whatever is done on behalf of the Corporation or Wall St is being done FOR me....
As long as I ignore the fact that it's really being done TO me.

That is all.

9:50
Dow 13,517.79 Down 77.31 (0.57%)
Nasdaq 2,784.09 Down 26.29 (0.94%)
S&P 500 1,499.21 Down 10.44 (0.69%)
10-Yr Bond 4.307% Up 0.016
NYSE Volume 221,316,953.125
Nasdaq Volume 186,419,640.625

As this week-end claims its second major bank CEO (Chuck Prince leaving Citigroup just a few days after Stan O'Neal was forced to leave Merrill Lynch), the financial world is bracing itself for more bad news.

As bad news have kept on coming relentlessly from investment banks, with new write downs from Merrill Lynch ($7.9 bn), UBS (SFR 4 bn), monoline insurer FSA ($200m) and, of course, Citigroup ($3.3 bn), more is expected in the very near future.

As I wrote on Friday morning, banks are trying their damnedest to hide what's going on, but the few available market-based indicators are all pointing to a bloodbath. and it keeps on getting worse.

-cut-

There's more in the article, but one thing strikes me today: the "structured finance" world is reeling today despite the fact that the economy is supposedly going well - ie it is not able to cope with what are meant to be mild economic conditions. what will happen when the coming recession strikes? Of course, to some extent, today's market crunch reflects the fears associated with that recession, but as most pundits and market players still tend to dismiss the possibility of anything worse than a mild recession (don't ask me why), it is unlikely that the full impact of any serious downturn is priced in already.

-and this-

If the Democratic candidates don't talk about this, whoever is elected WILL be blamed for it come 2009. This is a slow motion crash; it is by no means clear that the crash will be obvious by November 2008, and it is certain that the only goal of Bush, Bernanke et al is to delay the reckoning until after the election. If the problem is not identified and flagged right now, it will be blamed on the new occupant of the White House.

http://www.dailykos.com/storyonly/2007/11/4/165822/532

... once all the squawking subsides.

http://www.bloomberg.com/apps/news?pid=20601087&sid=agC9y13IzHt0&refer=worldwide

Nov. 5 (Bloomberg) -- The U.S. housing slowdown that propelled 10-year Treasuries to their biggest gains since 2002 may soon make the same securities laggards in the government bond market.

The notes returned 9.6 percent since mid-June as investors sought a haven from credit market losses caused by subprime mortgages, Merrill Lynch & Co. index data show. Sales of bonds backed by housing loans have dropped 20 percent this year as home purchases declined, according to Citigroup Inc., reducing the need for longer-maturity Treasuries as a hedge.

Fund managers may ``no longer buy the 10-year Treasury'' to protect their holdings, said Ajay Rajadhyaksha, head of interest rate strategy in New York at Barclays Capital Inc., one of 21 primary dealers of U.S. government securities obligated to bid at Treasury auctions.

The mortgage market's influence over Treasuries has increased as the amount of home loans quadrupled to $10.9 trillion since 2001, according to the Mortgage Bankers Association in Washington. More than $6 trillion of securities backed by home loans are outstanding, compared with $4.5 trillion of U.S. government debt securities, data compiled by the Treasury show.

more...

or are they going up?

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.Y%24%24&v=s&w=5&t=l&a=1

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2007-09-24 Monday, September 24 0.998901 USD
2007-09-25 Tuesday, September 25 0.9995 USD
2007-09-26 Wednesday, September 26 0.99552 USD
2007-09-27 Thursday, September 27 0.99691 USD
2007-09-28 Friday, September 28 1.00412 USD
2007-10-01 Monday, October 1 1.00715 USD
2007-10-02 Tuesday, October 2 0.9998 USD
2007-10-03 Wednesday, October 3 1.00392 USD
2007-10-04 Thursday, October 4 1.002 USD
2007-10-05 Friday, October 5 1.01885 USD
2007-10-08 Monday, October 8 1.01885 USD
2007-10-09 Tuesday, October 9 1.01564 USD
2007-10-10 Wednesday, October 10 1.01906 USD
2007-10-11 Thursday, October 11 1.02627 USD
2007-10-12 Friday, October 12 1.02701 USD
2007-10-15 Monday, October 15 1.02501 USD
2007-10-16 Tuesday, October 16 1.0227 USD
2007-10-17 Wednesday, October 17 1.02712 USD
2007-10-18 Thursday, October 18 1.02743 USD
2007-10-19 Friday, October 19 1.03767 USD
2007-10-22 Monday, October 22 1.01926 USD
2007-10-23 Tuesday, October 23 1.03381 USD
2007-10-24 Wednesday, October 24 1.02987 USD
2007-10-25 Thursday, October 25 1.03381 USD
2007-10-26 Friday, October 26 1.03961 USD
2007-10-29 Monday, October 29 1.04745 USD
2007-10-30 Tuesday, October 30 1.04888 USD
2007-10-31 Wednesday, October 31 1.05307 USD
2007-11-01 Thursday, November 1 1.05296 USD
2007-11-02 Friday, November 2 1.06838 USD


Current values

http://quotes.ino.com/exchanges/?r=CME_CD)

Market         Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     1.0714 1.0714 1.0704 1.0704 +0.0011 +0.10% 
CD.Z07 Dec 2007 1.0708 1.0720 1.0695 1.0704 +0.0010 +0.09% 
CD.H08 Mar 2008 1.0705 1.0705 1.0705 1.0705 +0.0010 +0.09% 
CD.M08 Jun 2008 1.0515 1.0552 1.0511 1.0693 +0.0135 +1.26% 
CD.U08 Sep 2008 1.0708 1.0708 1.0708 1.0708 +0.0018 +0.17% 
CD.Z08 Dec 2008 1.0501 1.0550 1.0500 1.0685 +0.0135 +1.26% 8 
CD.H09 Mar 2009 1.0055 1.0060 1.0050 1.0680 +0.0135 +1.26% 
 

Other combinations: (http://quotes.ino.com/exchanges/?c=currencies)

Market              Open    High     Low    Last   Change     Pct 
AUSTRALIAN $/CANADIAN $ (NYBOT:AS)
AS.Z07 Dec 2007 0.87540 0.87540 0.87540 0.85805 -0.01000 -1.17%   
AUSTRALIAN $/US$ (NYBOT:AU)
AU.Z07 Dec 2007 0.91795 0.91795 0.91795 0.91795 +0.00210 +0.23%  
CANADIAN $/JAPANESE YEN (NYBOT:HY)
HY.Z07 Dec 2007 121.66                      121.66 -0.32 -0.26%  
EURO/AUSTRALIAN $ (NYBOT:RA)
RA.Z07 Dec 2007 1.5560 1.5560 1.5560 1.5809 +0.0012 +0.08%  
EURO/BRITISH POUND (NYBOT:GB)
RP.Z07.E Dec 2007 (E) 0.69585 0.69765 0.69500 0.69680 +0.00140 +0.20%   
EURO/CANADIAN $ (NYBOT:EP)
EU.Z07 Dec 2007 1.4482 1.4482 1.4462 1.4462 -0.0051 -0.35%   
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.Z07 Dec 2007 165.260 165.260 165.260 164.580 -0.935 -0.56%   
EURO/US$ (LARGE) (NYBOT:EU)
EU.Z07 Dec 2007 1.43980 1.43980 1.43980 1.44325   +0.00360 +0.25% 

Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The December Canadian Dollar was steady to slightly higher overnight as it extends this fall's rally into uncharted territory. Stochastics and the RSI are overbought but are neutral to bullish signaling that sideways to higher prices are possible near-term. Upside targets are hard to project as December extends this fall's rally into uncharted territory. Closes below the 20-day moving average crossing at 1.0366 would confirm that a short-term top has been posted. First resistance is the overnight high crossing at 1.0748. First support is the 10-day moving average crossing at 1.0490. Second support is the 20-day moving average at crossing at 1.0367.

Analysis

On the news over the weekend some stores have been attempting to hold their interest rates at par to attract US business. Now they're saying the greenback has slipped so badly they're not going to be able to keep that up and make money.

Canadian tourists are flocking to the US 'cause of lower prices but other places as well due to the high loonie.

Current values

http://quotes.ino.com/exchanges/?r=CME_CD)

Market          Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     1.0714 1.0720 1.0704 1.0720 +0.0027 +0.25% 
CD.Z07 Dec 2007 1.0708 1.0721 1.0695 1.0720 +0.0026 +0.24% 
CD.H08 Mar 2008 1.0705 1.0721 1.0703 1.0721 +0.0026 +0.24% 
CD.M08 Jun 2008 1.0515 1.0552 1.0511 1.0719 +0.0026 +0.24% 
CD.U08 Sep 2008 1.0708 1.0708 1.0708 1.0716 +0.0026 +0.24% 
CD.Z08 Dec 2008 1.0501 1.0550 1.0500 1.0711 +0.0026 +0.24% 
CD.H09 Mar 2009 1.0055 1.0060 1.0050 1.0706 +0.0026 +0.24% 

Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The December Canadian Dollar closed higher close on Monday as it extended this fall's rally into uncharted territory. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. Upside targets are hard to project as December extends this fall's rally into new uncharted territory. Closes below the 20-day moving average crossing at 1.0367 are needed to confirm that a short-term top has been posted. First resistance is last Friday's high crossing at 107.25. First support is the 10-day moving average crossing at 104.92 then the 20-day moving average crossing at 1.0367.

Here is a post speculating that Rubin's new position as Chairman means they are looking for a political resolution (bailout)

http://www.dailykos.com/storyonly/2007/11/4/91929/3698

http://lists.essential.org/corp-focus/msg00048.html
1999: Teflon Bob and Banking Deregulation


Now look at one of the predictions of would happen as a result of financial deregulation.

There are a lot of people on the Yahoo message board that think there will be an announcement today. I was thinking that with the nomination in doubt that they would put that off. Any thoughts?

Except that Citigroup's and Merril's CEOs resigned in disgrace for lying for years about the real estate markets. Oh yeh, guessing about announcements from lying tools is called GAMBLING.

give them safe things like kiddie cartoon videos, make stuffed toys, give them a coupon for an afternoon at a kiddie amusement park. There are alternatives to things that might harm our precious children.

http://www.bloomberg.com/apps/news?pid=20601080&sid=aAjI4987i.cQ&refer=asia

Nov. 5 (Bloomberg) -- Asian stocks fell after Citigroup Inc. said it will increase writedowns by as much as $11 billion and Chinese Premier Wen Jiabao signaled plans to allow citizens to invest in Hong Kong shares are on hold.

Mitsubishi UFJ Financial Group Inc. declined for a third day and Commonwealth Bank of Australia slumped the most in almost three months on concern more banks will join Citigroup in reporting higher losses on U.S. subprime mortgages. &cls;China Mobile Ltd. Ltd. and China Life Insurance Co. led the Hang Seng Index's &cle; biggest drop since the Sept. 11 terrorist attacks.

``The subprime issue hasn't been solved yet,'' said Samantha Ho, who oversees more than $5 billion of Hong Kong and China equities at Invesco Asia Ltd. Potential delays in allowing Chinese investment in Hong Kong are hurting sentiment, she added.

The Morgan Stanley Capital International Asia Pacific Index lost 1.9 percent to 165.43 as of 5:33 p.m. in Tokyo, having on Nov. 2 slipped 2.2 percent from a record close. The two-day decline is the largest since Aug. 17. Financial shares were the biggest drag among the benchmark's 10 industry groups today.

...

Japan's Nikkei 225 Stock Average slid 1.5 percent to 16,268.92, while Taiwan and the Philippines were the only markets that rose.

/...

http://www.bloomberg.com/apps/news?pid=20601085&sid=anfi4AF3mxkg&refer=europe

Nov. 5 (Bloomberg) -- European stocks fell for a third day after Citigroup Inc. said it may write down an additional $11 billion, raising concern financial companies face more credit- market losses.

Societe Generale SA, Credit Suisse Group and Barclays Plc led banks lower after analysts downgraded the stocks. J Sainsbury Plc tumbled 21 percent as Qatar's Delta (Two) Ltd. dropped plans for a 10.5 billion-pound ($21.9 billion) takeover, citing a worsening debt market.

``It looks like there may be more bad news to come,'' said Simon Carter, who helps oversee $3 billion at Aegon Asset Management in Edinburgh. ``The Citigroup writedown due to subprime was much larger than expected. Sainsbury's woes are also not helping.''

The Dow Jones Stoxx 600 Index lost 0.7 percent to 377.32. The measure has dropped 2.9 percent in three days on concern that more banks may follow Citigroup and Merrill Lynch & Co. in increasing their estimates of losses related to subprime mortgages.

...

UBS AG Chairman Marcel Ospel may be ousted should the bank's losses from the collapse of the U.S. subprime mortgage market increase, Sonntag reported yesterday, without saying where it got the information.

National Markets

Benchmarks fell in all of the 18 western European markets except Sweden, Denmark and Spain. The U.K.'s FTSE 100 lost 1.1 percent. France's CAC 40 declined 0.6 percent and Germany's DAX dropped 0.5 percent. The Stoxx 50 decreased 0.5 percent, while the Euro Stoxx 50, a measure for the euro region, slid 0.4 percent.

UBS, Europe's largest bank by assets, sank 3.7 percent to 54.6 francs. The company's board has set a limit for losses of 10 billion Swiss francs ($8.7 billion), Sonntag said in its report on Ospel. Credit Suisse, Switzerland's second-largest bank, lost 1.7 percent to 71.25 francs. Societe Generale, the second-biggest French bank by market value, fell 2.1 percent to 106.34 euros. Bear Stearns Cos. cut its recommendation on the stocks to ``peer perform'' from ``outperform.''

...

Barclays, which makes more than a third of pretax profit from securities trading, fell 3 percent to 521.5 pence. HSBC Holdings Plc downgraded the stock to ``underweight'' from ``neutral.'' HBOS Plc, the U.K.'s No. 1 mortgage lender, was lowered to ``underweight'' from ``overweight'' at HSBC. The shares dropped 1.8 percent to 810 pence.

/...

http://news.yahoo.com/s/ft/20071104/bs_ft/fto110420071335381700;_ylt=AlDQ8Bq2Az6zDo.arRuKv2b2ULEF

...

Such a tsunami of red ink would undoubtedly be shocking at any time. But right now, this news is proving particularly unsettling for investors for two particular reasons. First, the numbers offer an unpleasant reminder that the pain from this summer's credit turmoil is still far from over - contrary to what some bullish American bankers and policymakers were trying to claim a few weeks ago. "To judge from secondary market prices, losses on mortgage inventory are likely to be larger in the fourth quarter than the third quarter," warns Tim Bond, analyst at Barclays Capital, the UK bank.

Second, the write-downs have reminded investors just how little is known about where the bodies from this summer's credit turmoil might lie. Perhaps the most shocking thing about recent announcements is that while big banks might have now written down their mortgage holdings by more than $20bn, this does not appear to capture all the potential losses.

Last week, for example, a US congressional committee warned that over the next year mortgage lenders could foreclose on 2m American homes, destroying $100bn of housing value. And some private sector economists think the total loss from mortgage problems could reach $200bn or more. "What everyone keeps asking is where are those losses sitting - where is the rest of that $100bn?" admitted one senior international policymaker late last month. "The worrying thing is that there still is just so much uncertainty around."

/continues...

China who killed the protesters in the Tiananmen Square Massacre? Communist China that has masses of underpaid slave labor and a handful of politically connected wealthy elite? Someone is drinking something and it ain't tea.

http://finance.yahoo.com/q/bc?s=%5EGSPC&t=1d

Nothing to see here, move along, keep shopping...

;)

Dow 13,543.40 51.70 (0.38%)
Nasdaq 2,795.18 15.20 (0.54%)
S&P 500 1,502.17 7.48 (0.50%)
10-Yr Bond 4.318% 0.027

NYSE Volume 3,885,619,750
Nasdaq Volume 2,159,823,750

4:25 pm : It was quite the start to the trading week with Citigroup (C 35.90, -1.83) roiling the market with an announcement that it anticipates recording a write-down of approximately $8 billion to $11 billion for its fourth quarter due to significant declines in the fair value of its approximately $55 billion of U.S. subprime related direct exposures.

On top of its write-down news, Citigroup also announced that CEO Charles Prince announced his "retirement." Sir Win Bischoff, the Chairman of Citi Europe, will serve as interim CEO. Robert Rubin has been named Chairman of the Board and will lead a committee entrusted with finding Prince's replacement.

The write-down news from Citigroup sent a shockwave through the financial sector, which traded down as much as 2.8% at its worst levels of the day, as it created fears about more write-downs being taken at other large financial institutions. In brief, it sent an unsettling message that the third quarter did not mark the bottom for the financial sector.

Briefing.com had its suspicions about that being the case. Accordingly, on October 5th we reiterated our Underweight rating for the sector.

Remarkably, more than 220 million shares of Citigroup, or nearly five times its average daily trading volume, were traded Monday.

The weakness in the financial sector was a key drag on the broader market. The S&P 500 was down close to 20 points at its low for the session, which was right around 2:30 ET.

The final numbers show that the S&P 500 finished well off its worst level of the day. Presumably, the recovery try was launched when the S&P 500 managed to hold support after re-testing the low of 1489.56 it hit on October 24th. Coincidentally, that was the day Merrill Lynch (MER 55.88, -1.40) reported a shocking $7.9 billion write-down of collateralized debt obligations and U.S. subprime mortgages during for its third quarter.

The S&P, in fact, managed to turn positive for a brief moment in the final half hour of the session as program trading and short-covering activity helped drive the expeditious rebound effort.

Buying efforts, however, faded into the close, leaving all three major indices in negative territory when the closing bell rang.

The financial sector finished down 1.4 percent and was the worst-performing of the ten economic sectors. The utilities sector, which gained 1.2 percent, and the consumer staples sector, which jumped 0.2 percent, were the only sectors to record a gain as they garnered interest in a safe-haven trade.

In other developments, the ISM Services index showed a reading of 55.8 for October. That was higher than the consensus estimate of 54.0 and slightly higher than the reading of 54.8 from September. A number above 50 reflects expansion. The market paid little attention to this news, though, as the Citigroup headlines overshadowed all else.DJ30 -51.70 NASDAQ -15.20 SP500 -7.48 NASDAQ Dec/Adv/Vol 2016/975/2.12 bln NYSE Dec/Adv/Vol 2471/782/1.52 bln

3:30 pm : The major indices have staged an expeditious rebound from their worst levels of the session, aided by what appears to be some program trading and, most likely, some short-covering activity.

The financial sector (-0.9%) has gone along for the ride and has played a major role in the broader market's recovery. At its lows for the day, the financial sector was down 2.8%.

Looking ahead, 53 companies are confirmed to report their earnings after the close, and 71 are set to report before the open tomorrow. There are no notable economic releases tomorrow.

DJ30 -10.97 NASDAQ -8.33 SP500 -1.77 NASDAQ Dec/Adv/Vol 1984/977/1.71 bln NYSE Dec/Adv/Vol 2458/778/1.13 bln

3:00 pm : The major indices are trading above their intraday lows following a modest pickup in buying interest. The small-cap Russell 2000 Index has slipped into negative territory for the year.

Decliners outweigh advancers this session. At the NYSE the advance/decline ratio is only 0.2.DJ30 -94.95 NASDAQ -26.42 R2K -1.3% SP500 -12.55 NASDAQ Dec/Adv/Vol 2168/780/1.53 bln NYSE Dec/Adv/Vol 2635/581/1.00 bln