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Market Commentary for August 20, 2007


Quite a whippy session to start a new fresh market week with the Bulls and Bears in a clear, tug of war through out the trading session. During mid-day, the markets took a sharp dive south and began to rebound during the mid-afternoon session. Investors and day traders moved cautiously during the trading day as they too, were not quite certain which direction the markets were going to take. With powerful hurricane Dean moving through the Gulf of Mexico, testing the category 5 status has concerns rising over the cost of fuel. Mass evacuations of staff and employees are occurring in the Gulf, on many oil rigs located there. Trading volume was light to moderate with moderate trading ranges through out the trading day.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a gain today of 42.27 points to end the session at 13,121.35; the NYSE (New York Stock Exchange) posted a gain of 11.22 points to end the session at 9,326.21; the NASDAQ posted a gain of 3.56 points for a close at 2,508.59; the S&P 500 moved lower by 0.39 points to end at 1,445.55 and the RUSSELL 2000 moved higher by 1.42 points to close at 787.45. The FTSE All-World Index ex-US (top Large/Mid Cap aggregate from over 2,700 stocks from the FTSE Global Equity Index Series (GEIS) which covers 90% of the world’s investable market capitalization) posted a gain of 3.56 points to close at 245.33 and the FTSE RAFI 1000 posted a gain of 11.63 points to close at 5,995.44.

U.S. Senator Christopher Dodd of Connecticut commented that he and Bernanke to meet Tuesday to discuss Markets.

Member of the Board of Governors, Donald L. Kohn comments released yesterday from a Fed paper that he co-wrote: can't rule out bigger sub-prime effect on U.S. Economy; past debt-driven spending gains unlikely to be repeated; erosion of sub-prime performance has been 'dramatic'; rate of 'serious' sub-prime delinquencies now at 13%; U.S. household debt-to-income up sharply in past 5 years and home prices played 'central role' in household debt rise.

Chicago Fed National Activity Index fell 0.10 in July versus an increase of 0.06 in June and Chicago Fed Index 3-Month average fell by 0.12 in July versus unchanged from June.

Economic Data:

Leading Indicators: Ten economic indicators are compiled by the Conference Board that should lead overall economic activity. In the past 30 years the data has been revised many times especially when it has not done a good job of predicting turning points in the economy. U.S. Conference Board data released today: July Leading Index rose 0.4%; July Coincident Index rose 0.2% and July Lagging Index rose 0.2%.

Commodities Markets

The trend was lower across the board today for the Energy Sector: Light crude moved lower by $0.86 today to close at $71.12 a barrel; Heating Oil ended the session lower by $0.04 again today to close at $2.00 gallon; Natural Gas moved lower today by $0.92 to close at $6.20 per million BTU and Unleaded Gas moved lower by $0.10 today to close at $1.94 a gallon.

Metals Market ended the session mixed across the board today: Gold moved lower today by $0.30 to close at $666.50 an ounce; Silver closed lower today by $0.07 to close at $11.74 per ounce; Platinum moved nicely higher today by $15.80 to close at $1,247.40 an ounce and Copper moved higher by $0.02 to close at $3.16 per pound.

On the Livestock and Meat Markets, the trend was mixed across the board today: Lean Hogs ended the day lower by 0.18 to close at 67.10; Pork Bellies ended the day lower by 1.13 to close at 95.65; Live Cattle moved higher by 0.18 to close at 95.65 and Feeder Cattle ended the day higher by 0.63 at 117.85.

Other Commodities: Corn moved higher on the day with a gain of 3.00 at 348.75 and Soybeans moved lower today for a loss of 0.50 points to end the session at 827.25.

The e-mini Dow ended the session today at 13,143 with a nice gain of 38 points on the trading session. The total Dow Exchange Volume for the day came in at 295,334 which are comprised of Electronic, Open Auction and Cash Exchange. Traders should review workshops available at the CBOT (Chicago Board of Trade) Educational in-person seminars schedules available on CBOT (Chicago Board of Trade) website.

Bonds were higher across the board today: 2 year bond moved higher by 5/32 today to close at 100 30/32; 5 year bond closed higher by 7/32 at 101 12/32; 10 year bond moved higher by 9/32 to close at 100 27/32 and the 30 year bond moved higher by 4/32 to close at 100 9/32 for the day.

The end of day results for the CBOT (Chicago Board of Trade) which is comprised of the total Exchange Volume for Futures and Options (EVFO) including Electronic, Open Auction and Cash Exchange ended the day at 4,742,068; Open Interest for Futures moved lower by 166,102 points to close at 9,900,629; the Open Interest for Options moved higher by 68,947 points to close at 9,523,910 and the Open Interest for OTC closed at 7,767 for a total Open Interest of 19,432,306 for a total Open Interest on the day for a loss of 97,155 points.

On the NYSE today, advancers came in at 1,948; decliners totaled 1,294; unchanged came in at 89; new highs came in at 16 and new lows came in at 60. Gainers and losers for the day as well as active day trading stocks on the NYSE: Precision Castparts Corporation (PCP) gave up 1.37 points on the day with a high of $132.89, a low of $126.04 to close the session at $130.13; Doral Financial Corporation (DRL) plummeted lower on the trading session to post a loss of 16.19% to shed 2.60 points for a final trading price on the day of $15.00; BlackRock Incorporated (BLK) provided downward trading action with a loss of 3.15 points with a high on the session of $161.58, a low of $154.55 to close the day at $158.10; National-Oilwell Varco Incorporated (NOV) was a nice day trading stock today with a high on the session of $112.60, a low of $106.07 for a light gain on the session of 2.81 points for a closing price on the day of $111.46 and Moody’s Corporation (MCO) shed 4.17 points on the session for a final trading price on the day of $45.81.

On the NASDAQ today, advanced totaled 1,570; decliners totaled 1.490; unchanged came in at 112, new highs came in at 16 and new lows came in at 85. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: First Solar Incorporated (FSLR) made a strong move higher on the trading session by 8.79 points to post a gain of 10.32% with a closing price on the day of $94.00; Baidu.com Incorporated (BIDU) bolted higher on the trading day to post a gain of 11.49 points for a final trading price of $188.00 and Crocs Incorporated (CROX) posted a nice gain on the trading session of 4.91 points for a closing price on the day of $56.13.

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