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Market Commentary for November 1, 2007


As we began the month of November, the markets were controlled by the Bears. Losses were heavy across the board on growing concerns one of which is that we could be headed for a recession. Continued concerns over the skyrocketing price of Crude Oil and over all economic conditions being felt across the nation due to housing concerns, added to the surge into lower territory today, just a day after the Federal Reserve cut short termed interest rates by 25 basis points. Across the board, markets road in the deep red territory with triple digit losses the common par for the course. Today, the Dows’ loss was its heaviest since mid October. Trading volumes were heavy amidst the strong sell off today. All eyes will be on the markets tomorrow to see if the street has the strength to post a rebound or, dig a deeper trench in yet lower territory.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a heavy triple digit loss of 362.14 points on the day to end the session at 13,567.87; the NYSE (New York Stock Exchange) posted a hefty triple digit loss of 289.53 points to end the session at 10,022.02; the NASDAQ posted a loss of 64.29 points for a close at 2,794.83: the S&P 500 moved lower by 40.94 points to end at 1,508.44 and the RUSSELL 2000 moved lower by 32.84 points to close at 822.61. 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 4.59 points to close at 274.51 and the FTSE RAFI 1000 posted a hefty triple digit loss of 171.78 points to close at 6,183.13.

U.S. ISM October Manufacturing Business Index came in at 50.9; U.S. ISM October Manufacturing Business Index was expected to came in at 51.6; U.S. ISM October Manufacturing Business Index came in at 50.9 versus September reading at 52.0; U.S. ISM October Prices Index came in at 63.0 versus September reading at 59.0; U.S. ISM October Employment Index came in at 52.0 versus September reading at 51.7; U.S. ISM October New Orders Index came in at 52.5 versus September reading at 53.4; U.S. ISM October Production Index came in at 49.6 versus September reading at 54.6; U.S. ISM Factory Activity was weakest since March 2007; U.S. ISM Factories hit by Financial and Housing Troubles.

U.S. Continuing Claims for week of October 20 rose by 65K to 2,588,000 and for week of October 27 U.S. Jobless Claims fell by 6K to 327K compared to expectations of a drop by 1K.

U.S. Personal Spending rose by 0.3% in September compared to consensus of an increase by 0.4%; U.S. Personal Income rose by 0.4% in September compared to consensus of an increase by 0.4%; September PCE Price Index rose at a rate of 0.2% on the month; September PCE Price Index rose at a rate of 2.4% on the year; September PCE Core Price Index rose at a rate of 0.2% on the month; September PCE Core Price Index rose at a rate of 1.8% on the year; August Spending was Revised to an increase by 0.5% from an increase by 0.6% and August Personal Income was Revised to an increase by 0.4% from an increase by 0.3%.

Steel Statement on Basel II Final Rule
Washington - Treasury Under Secretary for Domestic Finance Robert K. Steel issued the following statement today regarding U.S. regulators' release of the final Basel II rule: "Treasury applauds the U.S. financial regulators for their cooperation in writing a final Basel II rule. This achievement will modernize our bank capital regime to uphold the competitiveness of American capital markets while maintaining and enhancing safeguards for our institutions and the broader financial system. Secretary Paulson has long said that certainty on Basel II was a necessary component of any plan to strengthen the competitiveness of U.S. capital markets, and we are pleased that the regulators worked tirelessly to complete this complex task."

Commodities Markets
The trend was mixed across the board today for the Energy Sector: Light crude lower today by $1.04 to close at $93.49 a barrel; Heating Oil closed lower by $0.02 today at $2.51 a gallon; Natural Gas moved higher today by $0.31 to close at $8.64 per million BTU and Unleaded Gas moved higher today by $0.01 to close at $2.34 a gallon.

Metals Market ended the session mostly lower across the board today: Gold moved lower today by $1.60 to close at $793.70 an ounce; Silver moved lower by $0.11 to close at $14.33 per ounce; Platinum moved higher today by $3.20 to close at $1,450.80 an ounce and Copper closed lower by $0.11 today at $3.36 per pound.

On the Livestock and Meat Markets, the trend was lower across the board today: Lean Hogs ended the day lower by $1.63 to close at $52.25; Pork Bellies ended the day lower by $2.35 at $81.70; Live Cattle ended the day lower by $0.83 at $94.10 and Feeder Cattle ended the day lower by $0.10 at $108.30.

Other Commodities: Corn moved sharply lower today by $6.75 to close at $375.50 and Soybeans moved sharply lower today by $19.25 to end the session at $1,006.50.

Bonds were higher across the board today: 2 year bond moved higher by 11/32 today to close at 99 23/32; 5 year bond moved higher by 21/32 to close at 99 11/32 today; 10 year bond moved higher by 31/32 today to close at 103 4/32 and the 30 year bond closed higher by 1 25/32 at 105 24/32 for the day.

The e-mini Dow ended the session today at 13,603 with a hefty loss of 333 points on the trading session. The total Dow Exchange Volume for the day came in at 195,123 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 4,494,239; Open Interest for Futures moved lower by 60,499 points to close at 9,724,293; the Open Interest for Options moved higher by 218,262 points to close at 8,751,921 and the Cleared Only closed higher by 178 points at 11,288 for a total Open Interest on the day of 18,487,502 for a total Change on the day with a gain of 157,941 points.

On the NYSE today, advancers came in at 444 decliners totaled 2,846; unchanged came in at 62; new highs came in at 153 and new lows came in at 179. Gainers and losers for the day as well as active day trading stocks on the NYSE: MasterCard Incorporated (MA) was active again today with a high of $198.55, a low of $185.35 with a minor loss at the close of 0.43 points for a final trading price of $189.47; PetroChina Company Limited (PTR) took a tumble of 13.60 points on the day with a high on the session at $255.33, a low of $243.81 with a closing price of $249.00; Bunge Limited (BG) moved sharply lower on the day to post a loss of 12.08 points to shed 10.49% with a high on the day of $111.31, a low of $102.20 with a closing price at $103.11; General Cable Corporation (BGC) posted a loss of 10.21% to shed 7.35 points on the day with a high at $67.38, a low of $62.16 for a final trading price at $64.64; Acuity Brands Incorporated (AYI) tumbled lower on the session with a loss of 19.44% to shed 9.29 points with a final price at the bell at $38.51; POSCO (PKX) plummeted on the trading session to post a loss of 17.76 points with a high on the day of $171.82, a low of $165.05 for a close at $165.99; FTSE/Xinhua China (FXI) moved lower today by 10.18 points with a high of $212.97, a low of $206.64 for a closing price of $208.33 and Goldman Sachs Group Incorporated (GS) took a hit today with a loss of 7.71 points with a high on the day of $244.41, a low of $238.75 for a closing price at $241.21.

On the NASDAQ today, advanced totaled 568; decliners totaled 2,485; unchanged came in at 90; new highs came in at 82 and new lows came in at 239. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: ManTech International (MANT) posted a gain of 2.68 points with a high on the session of $48.45, a low of $42.08 with a final trade at $42.44; Crocs Incorporated (CROX) literally tumbled on the trading day to post a loss of 27.01 points to shed 36.13% with a high on the trading session of $55.86, a low of $47.37 with a final trading price of $47.74; United Therapeutics Corporation (UTHR) soared higher on the session by 25.67 points for a gain of 37.51% with a high on the day of $96.74, a low of $88.79 for a closing price at $94.11; Plexus Corporation (PLXS) moved nicely higher by 5.50 points with a gain by 21.32% for a high on the day of $32.47, a low of $29.70 with a closing price at the bell of $31.30 and Smith Micro Software Incorporated (SMSI) posted a hefty loss on the session of 4.66 points to lose 30.24% with a final trading price at $10.75.

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Millennium-Traders