Fung Stockmarket Advisory: 7/26/07 World Markets Selling Off

^FTSE FTSE 100 6,383.00 7:53AM ET 71.30 (1.10%)

http://finance.yahoo.com/intlindices?e=europe

This could get very ugly either on Friday.......or Monday..........

The FTSE is down -71........if when the FTSE (British Market) closes at 11:30, this number doesn't get better, you can multiply the loss for the DOW by 2.......in other words, 140 points or more........Go to the url to see what's happening to all the other markets in Europe. Asia sold off also, but it wasn't anything major....yet.

Most European markets are down about 1%........so if the U.S. markets have the same pattern, then we'll see about 135 point drop.........

Dow futures down 101 at this moment.
Barrel of oil over $77.00

I'm buying manhole futures..........


Seriously, this could get very ugly on Friday and or Monday........if the PPT is out there, do your stuff boys......... stockholders need you now.......

http://biz.yahoo.com/ap/070726/wall_street.html?.v=11



Wall Street Heads Toward Lower Open
Thursday July 26, 7:40 am ET
By Joe Bel Bruno, AP Business Writer


http://biz.yahoo.com/ap/070726/wall_street.html?.v=11Wall Street Heads Toward Lower Open Ahead of Economic Data, Dozens of Earnings Reports


NEW YORK (AP) -- Wall Street tilted toward a lower open on Thursday as investors awaited key economic data, including an update on existing U.S. home sales, and dozens of earnings reports.

The decline in U.S. stock futures follows a volatile day on Wall Street, where strong earnings and new deals helped push the Dow Jones industrials up almost 70 points. The higher finish in the U.S. was later echoed in Asia, where China's volatile stock markets surged to a new high on expectations for strong corporate profits.

read the whole article at the site provided.

http://www.thestreet.com/markets/databank/10032642.html

Go to this site to read the economic stats that are going to be released today, starting at 8:30 on CNBC

Dow futures now down 106..........meaning there will be a big downdraft at the open.......Remember, if you want to estimate the amount of gain or loss on the DOW today, just check the FTSE at 11:30.......times that number by two or so, and you'll get a ballpark number....give or take of course.

Oil just about $77.00 per barrel.....once it hits $80....well, the markets will react. That could take weeks OR days, depending on the political situation in the middleast.

Durable goods were up 1.4%......stripping out transportation, however, they were down .4%.....remember, transportation includes large aircraft orders which tend to goose up the D.G. number.

02. U.S. continuing jobless claims down 19,000 to 2.55 mln
8:30 AM ET, Jul 26, 2007 - 1 minute ago

03. U.S. 4-week avg. jobless claims down 4,000 to 308,500
8:30 AM ET, Jul 26, 2007 - 1 minute ago

04. U.S. June electronics orders down 4.6%
8:30 AM ET, Jul 26, 2007 - 1 minute ago

05. U.S. weekly claims lowest since week of May 12
8:30 AM ET, Jul 26, 2007 - 1 minute ago

06. U.S. June durable-goods inventories up 0.2%
8:30 AM ET, Jul 26, 2007 - 1 minute ago

07. U.S. weekly jobless claims down 2,000 to 301,000
8:30 AM ET, Jul 26, 2007 - 1 minute ago

08. U.S. June durable-goods shipments fall 1.1%
8:30 AM ET, Jul 26, 2007 - 1 minute ago

09. U.S. June aircraft orders up 28.7%
8:30 AM ET, Jul 26, 2007 - 1 minute ago

10. U.S. June durable-goods orders ex-transportation down 0.5%
8:30 AM ET, Jul 26, 2007 - 1 minute ago

11. U.S. June core capital-equipment orders fall 0.7%
8:30 AM ET, Jul 26, 2007 - 1 minute ago

12. U.S. June durable-goods orders up 1.4% vs. 2.5% expected
8:30 AM ET, Jul 26, 2007 - 1 minute ago


-----------------------------------------

Our economy is basically flying on a wing and a prayer.......literally.....without the aircraft orders, we'd be in very deep do do......

http://www.reuters.com/article/marketsNews/idINL2681780720070726?rpc=44


Insurers drive Europe shares lower, credit worry
Thu Jul 26, 2007 7:41AM EDT


http://www.reuters.com/article/marketsNews/idINL2681780720070726?rpc=44
By Eva Kuehnen

FRANKFURT, July 26 (Reuters) - European shares extended their losses at midday on Thursday as gains in oil majors were offset by declines in insurance stocks, such as Legal & General (LGEN.L: Quote, Profile, Research), while credit worries prevailed.

Royal Dutch Shell (RDSa.L: Quote, Profile, Research) gained 1.5 percent after second-quarter profit jumped, while Legal & General dropped 6.7 percent after posting weak first-half results and the size of a share buyback disappointed investors.

At 1137 GMT, the FTSEurofirst 300 (.FTEU3: Quote, Profile, Research) index of top European shares was down 1.5 percent at 1,548.24 points.

READ THIS
"The market is unsettled," said Boris Boehm, head of equity fund management at Nordinvest, adding that the signals for a correction were increasingly coming to the fore, such as subprime worries, concern about inflation and interest rates.

CNBC commentators are usings words like, "Crash"....Armageddon.....ect.
These folks were the biggest cheerleaders for the markets in history. They called the U.S. economy a Goldilocks scenario (Larry Kudlow)......Well Larry, Goldilocks just met the Three Bears, and the Bears won.

U.S. Stock-Index Futures Decline; D.R. Horton, Exxon Retreat
http://www.bloomberg.com/apps/news?pid=20601087&sid=aCr6IXhu173c&refer=home
By Lynn Thomasson

July 26 (Bloomberg) -- U.S. stock-index futures tumbled as concern about loan defaults increased, investors balked at funding takeovers and companies including Exxon Mobil Corp. reported earnings that missed analysts' estimates.

Exxon Mobil, the world's biggest energy producer, dropped after it said production declined, while homebuilders D.R. Horton Inc. and Beazer Homes USA Inc. retreated after reporting losses. Shares of Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co., the three largest U.S. banks, declined.

The cost of credit-default swaps used to insure corporate debt is the highest in more than two years. Speculation a government report will show new home sales fell in June and the rise in oil prices to a one-year high also weighed on stocks.

``With higher energy prices and looming problems in housing and mortgage financing, it looks like a tougher environment,'' said Liam Dalton, who oversees $1.3 billion as chief executive officer of Axiom Capital Management in New York.

S&P 500 futures expiring in September decreased 15.8 to 1508.9 as of 9:04 a.m. in New York. Dow average futures retreated 126 to 13,715. Nasdaq-100 Index futures slid 20 to 2006.5.

Government bonds rallied as investors retreated from risky assets. The yield on the 10-year Treasury note fell 6 basis points to 4.84 percent.

Exxon Mobil

Exxon Mobil lost $2.02 to $90.95. The company said second- quarter earnings fell 1 percent after production and crude prices slid. Per-share profit, which rose to $1.83 from $1.72 as buybacks reduced the amount of stock outstanding, was 13 cents below the average of 17 analyst estimates compiled by Bloomberg.

---------------------------------------------------------------

If you have CNBC, you should really tune into it today, and see history in the making. There's either going to be a PPT intervention, or an outright selloff, with curbs set to be go in when the market goes down too much. If curbs are implimented, the marketeers will hope that things will settle down overnight.......The are placing a very large bet on this happening. If it doesn't, then you be seeing the disintegration of financial markets over the next three months...Aug....Sept....October, with the grand selloff happening sometime in October (this could all happen sooner, however, I'm counting on volatility, not a one day huge selloff(which also could happen)......Since we're in uncharted territory...............anything at all is possible .....anything!!

Dr. F 9:36am EST Dow 13660.38 down 136.48.

It wouldn't surprise me if it closed up.

Or down today and back up tomorrow plus some change.

CBINGA

It has come up a little, only down 106 now

Oil just hit 77 bucks.

COME ON HUNDRED DOLLAR OIL!!!

WOOOOO---HOOOOOOOOOOO!!

I figure we might as well enjoy it!!!!!!!!! Treat it like a sheeple foot ball game and it don't seem so bad! You gotta look on the positive side!


CBIGNA

Thankfully, oil is the cornerstone of my portfolio. There has been a lot of red in my portfolio recently, but the oil just keeps charging ahead and keeping me in the black (appropriately enough).

After years of watching gold and silver tank with the market at large, I'm honestly starting to wonder what the heck I invest in them for. It is true that they tend to creep up against the tide, but whenever the market makes large moves down, they tend to fall as well. It makes me doubt the security of gold and silver in a crash.

AP -" Sales of new homes fell in June by the largest amount in five months as the housing industry continued to struggle with its worst downturn in 16 years. The median home price also fell."


Home sales, and home equity loans were the third leg of a three legged stool that was holding up the world's binge of conspicuous consumption.
With the continuing collapse of the dollar, and the loss of faith in TPTB concerning their economic expertise, there is no doubt in my mind that we are facing an outright calamity of historic proportions.

dissimulo said:

After years of watching gold and silver tank with the market at large, I'm honestly starting to wonder what the heck I invest in them for. It is true that they tend to creep up against the tide, but whenever the market makes large moves down, they tend to fall as well. It makes me doubt the security of gold and silver in a crash.

Click to expand...

I understand your angst, dissimulo, but that's exactly why gold is leaned on so hard by TPTB when the dollar and markets are under pressure.

On July 24, 1998, Alan Greenspan stood before the House Committee on Banking and Financial Services and said, "Central banks stand ready to lease gold in increasing quantities should the price rise."

This manipulation has been well documented and tracked at http://www.lemetropolecafe.com for a decade, but you won't see/hear about it from the TV talking heads or in the WSJ.

Why would TPTB ever bother to lean on gold?

Simple, to help calm panicked markets that might start wholesale dumping in a move towards any safer haven, such as out of the dollar to acquire gold instead. But, if gold can be made to be seen dropping, too, right then, why go there? Might as well just keep shuffling best as you can between stocks & bonds with dollars most will say, and that's what they want, to keep you from exiting all together by tarnishing the appeal of gold as a viable option. They want you to be saying to yourself; "It makes me doubt the security of gold and silver in a crash."

But, while any market can be pushed around for awhile, eventually it'll come to be priced close to it's fair value. That's true for the dollar and stocks and bonds, which IMO are over valued and, yes, even for gold and silver, which IMO are greatly under valued.

These imbalances, and the pressures built up, are large enough and have been going on long enough that, IMO, we are very close to a BIG RECKONING DAY. Afterwards which everyone then will wish they had dumped some of their depreciating dollars and dollar denominated investments in exchange for then greatly appreciating real wealth... gold/silver.

- Shane

P.S. - Yes, of course, get your family preps first, but then afterwards don't be left only holding depreciating dollars and dollar denominated investments.

Doctor Fungcool, so where did the FTSE close? I couldn't find it at ccn business.

Thanks,
A

amarilla said:

Doctor Fungcool, so where did the FTSE close? I couldn't find it at ccn business.

Thanks,
A

Click to expand...

FTSE closed down 203.1 (or 3%) -

h_oder said:

FTSE closed down 203.1 (or 3%) -

Click to expand...

Now down 253..........

Cleveland Housing Disaster Presented to Congressional Panel
Increase Decrease

A bit of Doom to go with lunch........chew slowly.......we don't
want anyone to choke!


July 25, 2007 (LPAC)--The Joint Economic Committee, chaired by Sen. Chuck Schumer (D-N.Y.), held a hearing today on "A local look at the national foreclosure crisis," focusing on the Cleveland area. The scope of the disaster was laid out by Jim Rokakis, Treasurer of Cuyahoga County (representing Cleveland and 59 cities, villages and townships). The state's largest county is on pace to foreclose on 17,000 properties in 2007 -- five times the 1995 total. This has had a destructive impact on the county's tax base: in 2006 more than 74,000 borrowers filed for a property tax reduction; an estimated 15,000 structures are vacant in the county. In the city of Cleveland, negative equity--where the value of a property is less than the mortgage amount--totals $86 million; in the suburbs, it is $43.5 million. Cleveland Councilman Anthony Brancatelli added that in his district of Slavic Village, there are two foreclosures per day. "It's too late, it's just the beginning of a crash across the country," he warned.

Lyndon LaRouche, in a webcast today in Washington, D.C., insisted that no one be thrown out of her home due to foreclosure. Mortgages should be changed to rent, as a short-term solution, until emergency measures can be implemented.



July 25, 2007 (LPAC)--After the market close, Pulte Homes, the third-largest U.S. homebuilder by revenue, posted a whopping net loss of $507.6 million for the second quarter. Net new home orders fell 20% from the second quarter of 2006 to 7,352 units; while revenue tumbled 40%. Pulte said it now was not providing guidance beyond the third quarter, citing the "lack of longer-term earnings visibility."

Meanwhile, Calabasas, California-based Ryland Group, recorded a second-quarter net loss of $52.4 million. Home sales plummeted 35.3%, and new orders fell 16.6%.




California Foreclosures Jump to Highest Level Ever
Increase Decrease

Still Afraid to Admit You've Been Living in a Bubble...?

July 25, 2007 (LPAC)--California foreclosures jumped to the highest level ever in the second quarter, and are expected to rise even higher in the second half of the year. Foreclosures soared to 17,408 in the quarter ended June 30, up 57.8% from the first quarter and an increase of 799% from the same period last year, according to DataQuick Information Systems. This represents the highest number of homes lost to foreclosure in California in its records, DataQuick said. Lenders filed 53,943 notices of default sent to borrowers who have fallen behind on mortgage payments during the quarter, up 158% from a year ago, and the highest level in more than a decade, as interest rates reset higher on adjustable-rate mortgages.

Dollar sinking back to 80 , too, after all the increase yesterday.



CBINGA

http://biz.yahoo.com/ap/070726/wall_street.html?.v=49


Dow Plunges 300 on Credit Concerns
Thursday July 26, 1:08 pm ET
By Joe Bel Bruno, AP Business Writer


Wall Street Plunges on Concerns About Credit Quality, Energy Prices, Taking Dow Down 300


NEW YORK (AP) -- Wall Street suffered its second-biggest plunge of the year Thursday, extending its weeks-long streak of volatility after disappointing home sales figures added to investors' increasing uneasiness about the mortgage and corporate lending markets. The Dow Jones industrials briefly fell more than 300 points, while Treasury yields plunged as investors moved money from stocks to bonds.



Investors who had been able to shrug off concerns about subprime mortgage lending problems and a more difficult environment for corporate borrowing were clearly worried once again. The Dow's drop is the biggest since it plummeted 416 points on Feb. 27 after a nearly 10 percent decline in Chinese stock markets.


http://biz.yahoo.com/ap/070726/wall_street.html?.v=49

The FTSE has closed down almost 203 points. Using my formula, the DOW should end up down between 300-400 points.......unless the PPT intervenes bigtime....which is always a possibility. However, they may just let these loses run today, and do their interventions tonight in Europe and Asia.......if they don't intervene, you're looking at Black Friday........and Blue Monday.......


http://finance.yahoo.com/intlindices?e=europe


Also, there's a possibility of a large drop in the price of gold, as traders scramble to get cash...............this drop won't last forever, so don't panic if it happens.


NOTE: You are seeing history in the making..........these times are historic.....

doctor_fungcool said:

Also, there's a possibility of a large drop in the price of gold, as traders scramble to get cash...............this drop won't last forever, so don't panic if it happens.

Click to expand...

I withdrew some cash from my trading account for exactly that possibility. Grabbing some physical on a big dip would be very nice.

Down to 318 now...

Mark D said:

I withdrew some cash from my trading account for exactly that possibility. Grabbing some physical on a big dip would be very nice.

Click to expand...

Gold could lose as much as 50 bucks per oz.......maybe more.
However, it will come back, as soon as things calm down.

What does " Curbs In " mean?

Thanks, Kim

Kim99 said:

What does " Curbs In " mean?

Thanks, Kim

Click to expand...

http://en.wikipedia.org/wiki/Trading_curb

DJIA 13,458.62 -326.45 -2.37%
NASDAQ 2,582.99 -65.18 -2.46%
S&P 500 1,478.54 -39.55 -2.61%

lafrteacher said:

DJIA 13,458.62 -326.45

Click to expand...

Ouch! That hurts. Down -338 At 2:00PM est.

CountryboyinGA said:

Dollar sinking back to 80 , too, after all the increase yesterday.



CBINGA

Click to expand...

So what's up with the spike up around 80.70 that happened a few minutes ago?

Hey - who was that bird that just raced through my yard and what exactly was he yelling...?

Is there blood in the streets yet?

DJIA 13,399.84 -385.23 -2.79%
NASDAQ 2,571.53 -76.64 -2.89%
S&P 500 1,471.68 -46.41 -3.06%

WOW!

Dow down 405.29 at 2:25 PM ET.

Naw, the bad news about housing isn't going to affect the overall stability of the economy or the market.

If you look at the charts, at its current descent rate it will be at around -600 when it closes.

PPT Steps in to save the day!!!

DOW JONES INDUSTRIAL AVERAGE IN 13,417.16 2:36pm ET Down 367.91

I dont see it going much lower then 400-450 max TODAY, now tomorrow, well thats another story

ADVANCING STOCKS VS DECLINING STOCKS

Advancing Issues 223 (7%) 196 (15%) 386 (12%) 430 (22%)

Declining Issues 3,071 (92%) 1,091 (81%) 2,711 (86%) 1,024 (53%)

Unchanged Issues 59 (2%) 62 (5%) 71 (2%) 462 (24%)
Total Issues 3,353 1,349 3,168 1,916

New Highs 38 36 61 200

New Lows 705 140 347 236

Up Volume 250,153,888 (7%) 65,932,338 (6%) 201,066,908 (8%) 304,813,085 (20%)

Down Volume 3,467,998,996 (93%) 959,977,403 (93%) 2,272,381,376 (91%) 532,522,119 (34%)

Unchanged Volume 8,760,897 (0%) 1,355,200 (0%) 11,019,396 (0%) 717,670,204 (46%)
Total Volume 3,726,913,7811 1,027,264,9411 2,484,467,6801 1,555,005,4081

1 = Total volume calculations include volume from pre-market and regional exchanges.