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Market Commentary for September 19, 2007


We saw the markets continue their trend in the green zone today, a day after the Federal Open Market Committee lowered interest rates. The major indices were positive across the board through out the session as well as, into the close. Data released today had little if any effect on the trading action. The Bulls continue to remain strong, amidst the positive market tone. Day Traders and investors were able to execute nice trades today, amidst the positive market mood.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a gain of 76.17 points on the day to end the session at 13,815.56; the NYSE (New York Stock Exchange) posted a gain of 61.87 points to end the session at 9,970.90; the NASDAQ posted a nice gain of 14.82 points for a close at 2,666.48; the S&P 500 moved higher with a gain of 9.25 points to end at 1,529.03 and the RUSSELL 2000 moved higher by 10.77 points to close at 817.40. 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 8.14 points to close at 263.85 and the FTSE RAFI 1000 posted a gain of 42.64 points to close at 6,312.63.

Federal Open Market Committee Chairman, Ben S. Bernanke comments released today, from September 17th letter to U.S. Representative Barney Frank: Fed to continue active role in mortgage markets; raising GSE loan limits should only be temporary; GSE’s could aid sub-prime borrowers without adding risk; GSE portfolio size, makeup should be 'tied to reforms'; main risks facing GSE’s interest rate, operational and credit not a main risk facing GSE’s.

Economic Data:

MBA Purchase Applications: Compilation from the Mortgage Bankers’ Association of various mortgage loan indexes. This data is the leading indicator for single-family home sales as well as, housing construction. MBA Purchase Applications data released today: U.S. MBA Market Index Rises 2.4% to 673.2 from 657.4; U.S. MBA Purchase Index Rises 0.9% to 452 from 448 and U.S. MBA Refinancing Index Rises 4.6% to 1962 from 1876.6.

Consumer Price Index (CPI): The measure of the average price level of a fixed basket of goods and services purchased by consumers; monthly changes represent the rate of inflation. CPI data released today: U.S. Real Average Weekly Earnings rose by 0.5% in August; U.S. August CPI Energy Prices fell 3.2%; U.S. August CPI Food Prices rose 0.4%; U.S. Core CPI rose 2.1% on the year which matches lowest reading since September 2005; U.S. August CPI Unrounded lower by 0.139%; U.S. August CPI Unrounded Core rose 0.150%; U.S. August CPI Excluding Food & Energy rose 0.2% versus consensus of an increase by 0.2% and U.S. August Consumer Prices fell 0.1% versus consensus unchanged.

Housing Market Index: Survey created by the National Association of Home Builders for a rating on the general economy and housing market conditions. Housing Market Index released today: U.S. August Housing Starts fell 2.6% to 1.331 Million versus consensus of a drop by 3.7%; Building Permits fell 5.9% to 1.307 Million rate in August and July Housing Starts revised to a drop by 6.9% from a drop by 6.1%.

EIA Petroleum Status Report: EIA (Energy Information Administration) provides weekly petroleum inventories in the United States whether they are produced here or abroad. Prices for petroleum products are determined by the level of inventories. Department of Energy released data today: U.S. Gasoline Stockpiles rose 400,000 Barrels in the week compared to expectations of a drop by 1.3 Million Barrels; U.S. Distillate Stockpiles rose 1.5 Million Barrels in the week compared to expectations of an increase by 1.1 Million Barrels and U.S. Refineries ran at 89.6% capacity, compared to expectations of a drop by 0.5 point at 90.0%.

Nymex Crude hits new record today at $82.51 a barrel, higher by $1.00 and crude was up on bigger than expected stockpile fall.

Commodities Markets

The trend was mostly higher across the board today for the Energy Sector: Light crude moved higher today by $0.42 to close at $81.93 a barrel; Heating Oil moved higher by $0.02 to close at $2.26 a gallon; Natural Gas moved lower today by $0.32 to close at $6.91 per million BTU and Unleaded Gas moved higher today by $0.03, to close at $2.09 a gallon.

Metals Market ended the session higher across the board yet again today: Gold moved higher today by $5.80 to close at $729.50 an ounce; Silver moved higher by $0.18 to close at $13.11 per ounce; Platinum higher today by $1.80 to close at $1,308.50 an ounce and Copper closed higher by $0.13 today at $3.58 per pound.

On the Livestock and Meat Markets, the trend was mixed across the board again today: Lean Hogs ended the day lower by 0.80 to close at 65.20; Pork Bellies ended the day lower by 1.78 at 85.15; Live Cattle ended the day at 99.45 and Feeder Cattle ended the day higher by 0.08 at 116.55.

Other Commodities: Corn moved higher on the day to post a gain of 6.00 at 358.25 and Soybeans moved higher today with a gain of 1.50 points to end the session at 971.00.

The e-mini Dow ended the session today at 13,897 with a gain of 62 points on the trading session. The total Dow Exchange Volume for the day came in at 251,246 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 lower across the board again today: 2 year bond closed lower by 1/32 at 100; 5 year bond closed lower by 6/32 at 99 22/32; 10 year bond moved lower by 15/32 today to close at 101 23/32 and the 30 year bond moved lower by 1 4/32 to close at 102 27/32 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 4,083,703; Open Interest for Futures moved lower by 70,226 points to close at 8,797,936; the Open Interest for Options moved higher by 19,021 points to close at 8,479,089 and the Cleared Only closed higher by 1 point to close at 8,482 for a total Open Interest on the day of 17,285,507 with a total Change on the day with a loss of 51,204 points.

On the NYSE today, advancers came in at 2,073; decliners totaled 1,165; unchanged came in at 82; new highs came in at 212 and new lows came in at 24. Gainers and losers for the day as well as active day trading stocks on the NYSE: China Southern Airlines Limited (ZNH) soared higher on the trading day to tack on 6.25 points with a closing price on the day of $81.85; Robbins & Myers Incorporated (RBN) bolted higher on the trading session with a gain of 14.87% to tack on 7.76 points with a high on the day of $60.40, a low of $54.50 with a closing price of $59.95; Kellwood Company (KWD) romped higher on the day for a gain of 26.37% to tack on 4.00 points with a closing price of $19.17 and LDK Solar Company Incorporated (LDK) posted a gain on the trading day of 5.60 points with a end of session price at $65.00.

On the NASDAQ today, advanced totaled 2,004; decliners totaled 1,005 unchanged came in at 154; new highs came in at 181 and new lows came in at 6028 Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: China Finance Online Company Limited (JRJC) moved higher on the trading day by 3.88 points for a gain of 25.66% with a high on the day of $19.00, a low of $15.52 for an end of session price of $19.00; Triad Guaranty Incorporated (TGIC) bolted higher on the session to tack on 14.00% for a gain of 2.43 points with a closing price of $20.14; Mercadolibre Incorporated (MELI) posted a strong gain on the day of 18.29% for a climb on the session by 5.12 points for a final trading price of $33.12; NutriSystem Incorporated (NTRI) fell sharply lower on the session by 6.95 points to post a loss of 12.20% for a closing price on the session of $50.00 and Google Incorporated (GOOG) continued its move into higher territory to post a strong gain of 11.58 points with a high on the day of $549.44, a low of $538.86 for a final trading price of $546.85.

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Millennium-Traders