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Market Commentary for October 15, 2007


The Bears used today’s trading session to put the Bulls back in their place. The major indices moved into negative territory from the open and the selling mood only increased in momentum, as the trading day moved forward. Trading volume was high with wide trading ranges due to the downhill spiral of the market session. Rising crude oil prices added to the dismal trend of the markets.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a triple digit loss of 108.25 points on the day to end the session at 13,984.80; the NYSE (New York Stock Exchange) posted a loss of 85.20 points to end the session at 10,216.29; the NASDAQ posted a loss of 25.63 points for a close at 2,780.05; the S&P 500 moved lower by 13.09 points to end at 1,548.71 and the RUSSELL 2000 moved lower by 11.81 points to close at 829.36. 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 loss of 1.20 points to close at 275.19 and the FTSE RAFI 1000 posted a loss of 58.41 points to close at 6,369.23.

Secretary of the Treasury, Henry M. Paulson Jr. comments released today: Special Bank Fund Will Have 'Real Benefits To Market’ and SIV Issue May Need Long-Term Policy Changes.

Treasury Statement on Private-Sector Announcement Of Liquidity Facility for Asset Backed Commercial Paper
Washington - The U.S. Department of the Treasury issued the following statement today regarding the intention of major global banks to create a liquidity facility to bolster the asset backed commercial paper market: "Treasury is pleased with the response by the private sector to enhance liquidity in the short term credit markets. The joint efforts of domestic and international financial institutions, broker dealers, and investors have resulted in a potential structure to improve liquidity in the asset backed commercial paper markets. This proposal will complement other solutions investors and asset managers may utilize in committing and deploying capital to support more efficient markets. "The Department appreciates this global consortium's cooperation during the last several weeks and their leadership in developing a market-based response to this situation. Such efforts help to foster orderly capital markets."

Member of the Federal Open Market Committee, Donald L. Kohn comments released from Friday October 12, 2007 after the market closed: Sees Some Value In Fed Inflation Target; Fed Should be Nimble Amid Turbulent Markets; Core Prices Best Predictor of Future Inflation; Fed Aims for Long Term Stability of all Prices; Defends Fed's Low Interest-Rate Policy After 2002; Fed Policy Includes Risk-Management Considerations and Policy Rules Helpful, but have Limitations.

Federal Reserve Bank of San Francisco, Janet Yellen comments from after market session hours, Friday October 12, 2007: Makes No Comment On Economy, Rate Policy; FOMC's Strength is Diversity of its Membership; Models Now Surrounded by Uncertainty, Limits; Real Economic Performance Often Thwarts Models and Economic Models Must Reflect Real World Better.

New York Fed October Prices Received came in at 15.12 versus 11.70 in September; New York Fed October Employment 20.51 versus 18.22 in September; New York Fed October New Orders 24.97 versus 13.56 in September and New York Fed's October Manufacturing Index 28.75 versus 14.70 in September.

Comments from former Federal Reserve Chairman Allan Greenspan: Rising China Stock Markets not Sustainable for Very Long; See Effect of Credit Crunch in Current Quarter and Odds of Recession Less Than 50/50.

Commodities Markets
The trend was higher across the board today for the Energy Sector: Light crude moved higher today by $2.44 to close at a new record high of $86.13 a barrel; Heating Oil closed higher by $0.06 at $2.33 a gallon; Natural Gas moved higher today by $0.29 to close at $8.33 per million BTU and Unleaded Gas moved higher today by $0.07 to close at $2.16 a gallon.

Metals Market ended the session mostly higher across the board today: Gold moved higher today by $8.40 to close at $762.50 an ounce; Silver moved lower by $0.05 to close at $13.86 per ounce; Platinum moved higher today by $9.20 to close at $1,426.00 an ounce and Copper closed higher by $0.03 at $3.69 per pound.

On the Livestock and Meat Markets, the trend was mixed across the board today: Lean Hogs ended the day higher by $0.05 to close at $58.33; Pork Bellies ended the day lower by $0.45 at $85.25; Live Cattle ended the day higher by $0.75 at $97.98 and Feeder Cattle ended the day lower by $0.05 at $113.85.

Other Commodities: Corn moved sharply higher today by $11.00 to close at $362.00 and Soybeans moved sharply higher today by $10.25 to end the session at $987.00.

Bonds were mostly higher across the board today: 2 year bond moved higher by 1/32 today to close at 99 19/32; 5 year bond moved higher by 2/32 to close at 99 10/32 today; 10 year bond moved higher by 1/32 today to close at 100 17/32 and the 30 year bond closed lower by 6/32 at 101 9/32 for the day.

The e-mini Dow ended the session today at 14,072 with a triple digit loss of 107 points on the trading session. The total Dow Exchange Volume for the day came in at 146,864 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.

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 3,671,686; Open Interest for Futures moved higher by 109,245 points to close at 9,471,575; the Open Interest for Options moved higher by 55,219 points to close at 8,469,226 and the Cleared Only closed higher by 20 points at 8,724 for a total Open Interest on the day of 17,949,525 with a total Change on the day with a gain of 164,484 points.

On the NYSE today, advancers came in at 879; decliners totaled 2,327; unchanged came in at 89; new highs came in at 373 and new lows came in at 79, same as yesterday. Gainers and losers for the day as well as active day trading stocks on the NYSE: PetroChina Company Limited (PTR) provided nice trading action for the active day trader today with a high on the session of $242.15, a low of $223.50 with a substantial gain of $20.31 for a final trading price of $236.44; Ambac Financial Group (ABK) shed 2.57 points on the session with a high on the day of $70.38, a low of $66.03 with a closing price at the bell of $66.39; Las Vegas Sands Corporation (LVS) fell by 4.00 points on the day with a high on the trading session of $140.53, a low of $132.02 for a closing price of $134.25 and Medtronic Incorporated (MDT) fell sharply lower on the day to post a loss of 10.94% to shed 6.16 points with a high on the day of $51.32, a low of $48.69 with a closing price of $50.17.

On the NASDAQ today, advanced totaled 904; decliners totaled 2,115; unchanged came in at 107; new highs came in at 343 and new lows came in at 158. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: Biogen Idec Incorporated (BIIB) soared higher on the day to post a sharp gain of 19.21% to tack on 13.34 points with a high on the day of $84.75, a low of $80.96 for a closing price of $82.77; Sears Holdings Corporation (SHLD) moved lower on the day with a loss of 4.22 points with a high of $142.81, a low of $136.12 for a closing price of $138.14; Google Incorporated (GOOG) plummeted lower on the trading session with a loss of 16.04points with a high on the day of $639.86, a low of $615.55 with an end of trading day price of $621.35 and Baidu.com Incorporated (BIDU) started its reversal today to shed 8.97 points with a high of $324.38, a low of $309.45 for a closing price of $314.00.

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