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Market Commentary for November 28, 2007


For the second consecutive trading session, the markets successfully posted gains on the session. Crude Oil dropped by over three dollars on the day and economic data released today appears to be a clear sign that the FOMC will cut rates at their next meeting on December 11. Day traders and investors reaped the benefits of the higher trend of the markets today. Trading volume was heavy and nice trading ranges assisted traders in the markets today.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a triple digit gain of 331.01 points on the day to end the session at 13,289.45; the NYSE (New York Stock Exchange) posted a triple digit gain of 269.29 points to end the session at 9,791.05; the NASDAQ posted a gain of 61.63 points for a close at 2,662.91; the S&P 500 moved higher by 40.79 points to end at 1,469.02 and the RUSSELL 2000 moved higher by 26.77 points to close at 770.04. 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 5.46 points to close at 263.59 and the FTSE RAFI 1000 posted a gain of 161.98 points to close at 5,988.17.

U.S. Mortgage Bankers Association (MBA) Purchase Index rose by 6.1% to 450.1 from 424.1; U.S. MBA Market Index Falls by 4.3% to 652.5 from 681.7 and U.S. MBA Refinancing Index Falls by 15.3% to 1862.9 from 2199.9.

U.S. October Durable Goods Orders fell by 0.4% compared to consensus of a drop by 0.1%; October Durable Goods Orders Excluding-Transportation fell by 0.7%; October Durable Goods Orders Excluding-Defense fell by 0.9% and September Durable Goods Orders was revised to a drop by 1.4% from a drop by 1.7%.

U.S. October Existing Home Sales fell by 1.2% to rate of 4.97 Million compared to consensus of a rate of 5.00 Million; U.S. October Median Existing Home Price fell by 5.1% on the year to $207,800 and U.S. Inventory of Unsold U.S. Homes at 10.8 Month Supply.

Department Of Energy released Crude Oil Inventories today: U.S. Crude Oil Stockpiles fell by 0.4 Million Barrels at 313.2 Million Barrels; U.S. Crude Oil Stockpiles fell by 400,000 Barrels in the week compared to expectations of a drop by 500,000 Barrels; U.S. Gasoline Stockpiles rose by 1.4 Million Barrels in the week compared to expectations of an increase by 600,000 Barrels; U.S. Distillate Stockpiles fell by 100,000 Barrels in the week compared to expectations of a drop by 1 Million Barrels and U.S. Refineries fan at capacity of 89.4% compared to expectations of an increase by 0.6 points at 87.6%.

Fed's Beige Book data released today: Housing Demand Remains 'Quite Depressed'; Builders See No Housing Pickup Before Late 2008; Commercial Building Strong But Leveling Off; U.S. Economy Expanding but at a 'Reduced Pace'; Retail Spending 'Downbeat, 'Holiday Season Seen Slow; Banks See Slower Growth In Loan Demand; Core Prices 'Largely Stable or Down A Bit'; Lower Dollar Boosting Prices of Imported Goods and Manufacturing Stable; Exporters See Strong Demand.

Comments released today from President Federal Reserve Bank of Dallas, Richard W. Fisher: Fed Mindful of Markets, Won't Take Markets Lead on Rates; Dollar Slide Partly Tied to Interest Rte Differences; Economy Faces Slow Growth, Higher Inflation Risks; Fed Facing A Policy Dilemma Right Now; Fed Needs to be Mindful of Dollar Value; Fed Policy Choices Must be Made Carefully; Fed Still Facing Inflationary Threat; Fed Will Watch Data Ahead Of December Rate Meeting; Markets Moving Back to More Appropriate Pricing Levels and Recession Remains Unlikely at Current Point.

Federal Reserve Board Member Donald L. Kohn comments released today: Bank Balance Sheet Transparency is Incomplete; Core Inflation Better Predictor of Future Inflation; Effectively Pursing Fed Mandate Will Aid Dollar Value; Fed Can Compensate For Higher Credit Costs; Fed Has A Risk Management Monetary Policy; Fed Should Note Markets Views, but Need Not Follow Them; Fed/Market Rate Outlook Disconnect is Not New Issue; Good Reasons to Keep Disc Rate Over Funds Rate; Housing Has Declined at Rapid Rate; Inflation Risks Have Not Gone Away; Is Surprised by Extent Of Markets' Recent Troubles; Main Difference Since Last FOMC is Market Troubles; Recent Economic Data Has Been 'Mixed' and Spending Data Has Been on 'Soft Side'.

Commodities Markets
The trend was lower across the board yet again today for the Energy Sector: Light crude moved lower today by $3.80 to close at $90.62 a barrel; Heating Oil moved lower today by $0.08 at $2.58 a gallon; Natural Gas moved lower today by $0.33 to close at $7.49 per million BTU and Unleaded Gas moved lower today by $0.10 to close at $2.28 a gallon.

Metals Market ended the session mostly lower across the board today: Gold moved sharply lower today by $14.00 to close at $807.20 a Troy ounce; Silver moved lower by $0.15 today to close at $14.53 per Troy ounce; Platinum moved sharply lower today by $15.20 to close at $1,438.30 per Troy ounce and Copper moved higher by $0.04 to close at $3.03 per pound.

On the Livestock and Meat Markets, the trend was mostly lower across the board today: Lean Hogs ended the day higher by $0.63 to close at $62.83; Pork Bellies ended the day lower by $0.15 at $91.48; Live Cattle ended the day lower by $0.90 at $97.05 and Feeder Cattle ended the day lower by $1.00 at $109.58.

Other Commodities: Corn moved higher today by $3.75 to close at $404.50 and Soybeans moved higher today by $5.75 to end the session at $1,096.75.

Bonds were lower across the board again today: 2 year bond moved lower by 6/32 to close at 100 6/32; 5 year bond moved lower by 17/32 to close at 101 22/32 today; 10 year bond moved lower by 20/32 at 101 26/32 and the 30 year bond closed lower by 26/32 at 109 21/32 for the day.

The e-mini Dow ended the session today at 13,306 with a gain of 351 points on the trading session. The total Dow Exchange Volume for the day came in at 274,588 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 9,290,419; Open Interest for Futures moved lower by 64,456 points to close at 10,322,981; the Open Interest for Options moved higher by 251,073 points to close at 6,142,106 and the Cleared Only moved higher by 71 points to close at 15,379 for a total Open Interest on the day of 16,480,466 for a total Change on the day with a gain of 186,688 points.

On the NYSE today, advancers came in at 2,805; decliners totaled 525; unchanged came in at 66; new highs came in at 61 and new lows came in at 181. Active trading stocks on the Big Board today: Rio Tinto plc (RTP) soared higher on the trading session with a gain of 21.95 points with a high on the session of $451.98, a low of $432.21 for a final trading price at the close of $448.70; CME Group Incorporated (CME) bolted higher on the session to tack on a gain of 30.40 points with a high on the session of $654.00, a low of $627.00 with a closing price at $653.40; Goldman Sachs Group Incorporated (GS) provided nice trading action for the active day trader with a high on the day of $227.86, a low of $214.69 for a gain on the day of 14.19 points with a closing price at $227.52; Petroleo Brasileiro S.A. (PBR) was a nice day trading stock with a high on the session of $98.74, a low of $96.23 with a gain of 4.04 points for a closing price at the high of the session at $98.74 and MasterCard Incorporated (MA) posted a favorable gain of 11.74 points on the day with a high on the session of $198.10, a low of $186.00 to end the session at $195.60.

On the NASDAQ today, advanced totaled 2,374; decliners totaled 657; unchanged came in at 108; new highs came in at 46 and new lows came in at 141. Active trading stocks for the day consisted of: Verigy Limited (VRGY) moved nicely higher on the trading session for a gain of 5.96 points to tack on 28.31% with a high on the day at $27.25, a low of $25.37 for a closing price of $27.01; Baidu.com Incorporated (BIDU) rallied higher on the session with a gain of 26.59 points with a high on the session of $367.57, a low of $348.62 for a closing price of $367.93 and Google Incorporated (GOOG) posted a gain of 17.73 points on the day with a high on the trading session of $694.30, a low of $672.14 with a ending price of $691.30.

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