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OI Technical Staff : 1/12/2007 9:59:59 PM

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Keene Little : 1/12/2007 6:23:32 PM

No surprise here--money supply took a big jump up this week, as seen in this chart of calculated M3. The previous week's sharp decline in the rate of change was completely reversed this week, and then added some more. Last week the market sold off and this week it rallied. I rest my case about the Fed's money creation and the direct link to our market. Have a great weekend and we'll see what happens next week. Link

Jane Fox : 1/12/2007 4:21:17 PM

C U all on Tuesday. Have a great long weekend.

Keene Little : 1/12/2007 4:21:07 PM

Well done by the bulls--ES tagged, right at the close, its upper Fib target for the move up from Wednesday's low. Just as the RUT could be ready for a down day from the open on Tuesday, ES could now be ready for the same thing. Just a possibility as I look at this pattern. Link

Marc Eckelberry : 1/12/2007 4:20:51 PM

Call sellers got jammed. NQ is 30 points away from its 5 DMA, it will pull back to the 1835/1840 area.

Keene Little : 1/12/2007 4:11:41 PM

Certainly no fear of the weekend by the bulls as the futures ramp in after hours.

Marc Eckelberry : 1/12/2007 4:10:03 PM

Small caps rotation is bullish as the rally expands.

Marc Eckelberry : 1/12/2007 4:03:51 PM

Be my guest. I never sleep and put those up...

Keene Little : 1/12/2007 4:03:01 PM

Thanks Marc, that's where I got it from (wink).

Marc Eckelberry : 1/12/2007 4:01:07 PM

That looks like the edit I did on the blog, Keene :)

Keene Little : 1/12/2007 4:00:06 PM

I've been repeatedly stating for months now that I believe the Fed will be forced to raise rates and not lower them. The Fed has more than hinted about this. Their hyperinflationary money creation almost guarantees it (they're pumping money into the economy in hopes of thwarting a housing crash--good luck). From Bloomberg:

Jan. 12 (Bloomberg) -- Bank of England Governor Mervyn King once famously said that interest-rate policy should be "boring." Yesterday he flunked the test.

The U.K. central bank's surprise interest-rate increase was the second in six months to shock investors and economists, and may send a message to those who greeted the new year betting that by mid-year the European Central Bank would stop raising rates and the Federal Reserve would cut them.

Dominic White, an economist at ABN Amro Holding NV in London, predicts every major central bank will raise rates this year and warns "markets may be overlooking that," increasing the chance they'll be surprised again and not just by the U.K.

After leaving the ECB's benchmark rate at 3.5 percent yesterday, President Jean-Claude Trichet reminded investors that he too is prepared to blindside markets with rate increases should the council deem it necessary to curb inflation.

"I don't exclude that we could surprise the market," he said at a press conference in Frankfurt.

In the U.S., Fed officials are signaling a bigger concern about inflation than indicated by financial markets. Fed Bank of Chicago President Michael Moskow said two days ago that it's "certainly" the case higher rates than the current 5.25 percent may be needed.

Marc Eckelberry : 1/12/2007 3:53:19 PM

Copper is selling off once again on the building materials drop (hidden in the paragraphs of the "strong" retail sales). I guess no one is even noticing the sequential drop in retail sales from November. But that's the spin zone and bad reporting.

Keene Little : 1/12/2007 3:49:41 PM

We've typically seen the Thursday, and sometimes Friday, before opex get driven down while big money scoops up cheap front-month call options and then jam the market higher into opex. I'm wondering if we're seeing the opposite here as they scoop up cheap front-month puts this time.

Marc Eckelberry : 1/12/2007 3:48:31 PM

Crude did a key reversal day on volume, hitting weekly S2 (or close) and jumping up almost 2%. This will help ES next week. In fact, I'm starting to wonder if they won't move out of techs. One more big guy warning (MOT and AMD, 2 for 2) and they are out and back in oil and SPX.

Keene Little : 1/12/2007 3:47:53 PM

The RUT just might be putting in a high here and it could end up being a truncated finish to its rally (i.e., it might not make a new all-time high). As shown here, it looks like a clean 5-wave move up from Tuesday with an ascending wedge for the 5th wave and the bearish divergence against wave-3 for confirmation. I don't think I'd want to be long small caps going into next week. The risk here is that we'll start down immediately next week. Link

Marc Eckelberry : 1/12/2007 3:44:23 PM

The relentless bid today is opex driven. Low volume helps them and they are making sure most puts becoming worthless after the three day weekend. They might work on the long calls after that.

Jeff Bailey : 1/12/2007 3:42:26 PM

RUT.X 793.57 +0.64% ... might even have to "drag up" a Friday close here too.

Jeff Bailey : 1/12/2007 3:30:12 PM

PetroChina (PTR) $127.74 +2.21% ... 38.2% retracement of its 09/11/06 relative low close to its recent all-time high close of 12/28/06.

Jeff Bailey : 1/12/2007 3:28:37 PM

CNOOC (CEO) $87.09 +2.87% ... 50% retracement of 09/11/06 relative low close to its recent all-time high close of 12/29/06.

Jeff Bailey : 1/12/2007 3:27:00 PM

NYSE NH/NL 203/7

NASDAQ NH/NL 134/13

SPX NH/NL 54/1

Jane Fox : 1/12/2007 3:24:25 PM

Everyone remembers that Monday is a market holiday? Martin Luther King day.

Jane Fox : 1/12/2007 3:23:42 PM

Not as bullish as yesterday but certainly bullish. Link

Jeff Bailey : 1/12/2007 3:22:59 PM

03:16 Market Watch found at this Link

Keene Little : 1/12/2007 3:22:12 PM

SPX came oh so close to making a new high--missed it by only 0.58 on that last jab to the upside. It should be able to do it though--gotta get it in the papers this weekend.

Jeff Bailey : 1/12/2007 2:59:19 PM

I'm not so sure interest rates are headed higher. Chief concernes of the Fed have been housing and energy prices and they have come down.

Employment costs? Ah yes. Critics of the Fed and Mr. Greenspan for the recession. I remember they were blamed for tightening too much in response to "wage pressures" in late 1999 early 2000, which supposedly brought on the recession soon after.

So far, Fed action looks to be right on the mark. "slow, steady, measured pace..."

Keene Little : 1/12/2007 2:55:30 PM

It looks like another bull flag forming for the past two hours, suggesting new highs into the close. There might be some brief profit-taking just before the close but so far this looks like it should head higher again. Bulls are confident.

Keene Little : 1/12/2007 2:37:55 PM

With interest rates headed higher one has to wonder when the stock market will "get it". For now I suppose it's possible that money is simply rotating out of bonds into stocks. But pretty soon smart money is going to look at 4.8%-5.0% safe returns as a pretty good deal and take money out of stocks.

One of the factors that is making our market vulnerable right now is significant complacency as money chases higher risk with lower returns. An example is all the money that's been chasing emerging markets, or junk bonds. Second tier stocks have been doing better than first tier lately as hot money chases weaker stocks. That's what sets us up for a significant "dislocation" when panic suddenly sets in. See commodities for an example. Most bulls have no clue about how vulnerable the market is right here.

Jane Fox : 1/12/2007 2:32:44 PM

ECBOT is down again

Keene Little : 1/12/2007 2:23:58 PM

BTW, I'm leaning towards the lower Fib target at SPX 1433 because of the final EW pattern for the move up from November. Whenever the 1st and 3rd waves are near equal (as they are) the 5th wave tends to be either 62% of the 1st wave or 162%. I suppose anything is possible in this market but 162% projection puts SPX up at 1480 and I just don't see where the fuel is going to come from to make that happen. So that means the 1433 target is the higher probability. We're close, or we're not even close (wink).

Jeff Bailey : 1/12/2007 2:17:32 PM

GOOG $502.60 +0.57% ...

Keene Little : 1/12/2007 2:14:12 PM

If the lower highs in RSI are to continue to hold then it's almost there for SPX. The first upside Fib target is 1433, for a slightly new high, and then 1451 which matches a longer term Fib projection. I'd look at 1433 for the first shorting opportunity and then if it continues higher watch for 1438 followed by 1451 (which could happen in a blow-off move). Link

Jeff Bailey : 1/12/2007 2:16:59 PM

Microsoft (MSFT) $31.19 +1.59% ... continues to surge from $30 strike.

Yes ... a couple of days ago I actually thought about profiling a NAKED $30 call. MSFT wasn't going anywhere (I thought to myself). Even yesterday morning I thought that!

Yep... "you can't chase it here...." unless you're short/naked!

Jane Fox : 1/12/2007 2:04:07 PM

SAN FRANCISCO (MarketWatch) -- With Cisco Systems Inc. (CSCO) suing Apple Inc. (AAPL) over the use of the term "iPhone", debate has begun about what kind of settlement the two tech titans will reach in the matter. Trip Chowdhry, managing director at Global Equities Research, said he expects Apple to change the name of the iPhone to "Apple Phone" in time for the product's scheduled release in June. Chowdhry said he based his belief on conversations with sources close to the iPhone situation. Cisco sued Apple on Wednesday, saying it has owned the rights to the iPhone name for several years, and uses it on a series of Internet phones from its wireless division, Linksys.

Jane Fox : 1/12/2007 2:03:11 PM

WASHINGTON (MarketWatch) -- The U.S. posted a budget surplus of $44.5 billion in December as receipts hit a record high for the month, the Treasury Department reported Friday. Receipts in December rose to $259.9 billion compared to $241.8 billion in the same month a year ago. A year ago, the government posted a surplus of $10.9 billion. The December surplus was higher than the $40 billion estimated earlier this week by the Congressional Budget Office. Through the first three months of the fiscal year, the deficit has fallen to $80.4 billion, compared to $119.3 billion in the first three months of last year.

Jeff Bailey : 1/12/2007 1:52:07 PM

Note: 2006's January expiration was 1/20/06.

Jane Fox : 1/12/2007 1:51:36 PM

* Feb. gold up $13.10, or 2.1%, to close at $627/oz in NY
* Feb. gold ends the week up $20.10, or 3.3%
* March silver up 42 cents, or 3.4%, to end at $12.88/oz
* March silver ends the week with a 5.3% gain

Jeff Bailey : 1/12/2007 1:49:44 PM

I did NOT recently PROFILE the QQQQ Feb. $43 Puts based entirely on last year's Jan 11-12 trade. Internals suggest(ed) a "put the rally" in my opinion.

Next week's calendar via the StockTrader's Almanac has "bull heads" for Tuesday and Wednesday. Friday's note is a "bear head" that January Expiration Day Down 7 of Last 8 With Big Losses

Jeff Bailey : 1/12/2007 1:45:05 PM

QQQQ daily interval chart I've shown in prior Market Wraps and here in the MM. Blue is my "bull fit 38.2%" and PINK is/was a "drag it up" conventional, where $44.65 was a Friday high close from 11/24/06, and it looks like I'll be dragging that UP at today's close. Here's the chart Link

The horizontal GREEN lines are prior benchmarks to those month's CLOSING OptionExpirations.

I do think we're seeing some NAKED CALL squeeze for January expiration. However, each CLOSE above a BLUE retracement level has lent itself to FURTHER STRENGTH, with UPSIDE Risk/Reward being assessed to the next level higher.

Keene Little : 1/12/2007 1:43:31 PM

From a shorter term perspective, in looking at the move up from Monday's low, and expecting to see a 5-wave move, it could be that today's high is just the completion of the 3rd wave. That calls for a sideways/down correction with a final push higher early next week. This 30-min chart shows how it might play out (the dates are off by one day next week since the 15th is closed, not yet reflected by QCharts). Link

Keene Little : 1/12/2007 1:22:38 PM

I see an interesting setup on the DOW which calls for a high at 12580 which happens to be the January high, so maybe a retest and failure? This daily chart shows the ascending wedge that has been forming since November and has all the bearish divergences to go with it. The wave count for the move up from early November suggests a top near 12570. The top of the wedge is closer to 12600 and then a larger Fib projection based on the first move up from July points to 12626. Link

With a range between 12570 and 12626 that's not terribly helpful except for those playing options in which case who cares about 60 points. With potential failure at any time, now is a good time to nibble on some longer term short positions. Moving in a little closer, this 60-min chart shows the move since the December high. Link

The December high looks to be the 3rd wave within the move up from early November. After the pullback to December 26th it looks like we could be close to finishing an a-b-c move for wave-5 (an a-b-c move because it's in an ascending wedge). Equality between the two legs up is at 12580 and that's where I think we'll top out. That would be a retest of the January high and should have all kinds of bearish divergences associated with it, if it's to be the top. If it's not the top then watch 12600 and 12626.

Jane Fox : 1/12/2007 1:18:19 PM

Here is what Keene was talking about in his 12:46 post when he said "relentless push higher." Link

Jeff Bailey : 1/12/2007 1:17:06 PM

Profunds Ultra Short Small-Cap (UCPIX) closed NAV $13.38.

An investor that may have placed an initial minimum investment $15,000.00 in this fund on 11/02/06 at $15.57 may want to assess things in relation to account management.

Jeff Bailey : 1/12/2007 1:12:32 PM

Ultra Short OTC ProFund Investors (USPIX) closed NAV $12.42.

An investor that may have placed an initial minimum investment of $15,000.00 in this fund on 11/02/06 at $14.67 may need some protection as the NDX/QQQQ breaks out to new highs.

$-2,300.61 as of last night's close, and this fund moving inverse 1.5-times, prudent account management (in my opinion) says something needs to be done.

If in an IRA where you don't have the ability to utilize options to harness 1.5-times, or additional capital for a 1.5-time long fund, then you must get things under control.

For those that can utilize options, I would look to try and either sell some out-the-money naked puts, or purchase in the money calls.

Account management should have an investor assessing current (gain/loss) when hedging. If at a loss of $2,300, DO NOT spend MORE THAN THE AMOUNT OF THE LOSS for the hedge.

Keene Little : 1/12/2007 12:59:07 PM

Looks like they're pushing this higher to get SPX to a new multi-year high as well--almost there at 1431.81. If they can push the DOW above 12580 then they'll be able to get the public all excited about new all-time highs for the DOW as well. That could be important to pull the public in for the hand off next week.

Keene Little : 1/12/2007 12:46:42 PM

Just another relentless push higher. It's got no volume but it doesn't need any when the sellers take a vacation.

Keene Little : 1/12/2007 12:41:27 PM

VIX was unable to get through its 200-dma on the bounce earlier in the month and is now pulling back towards the 2005 lows (which were briefly broken in December). SPX is testing the December highs without new lows in the VIX and this is another potentially bearish divergence. The uptrend in higher lows for MACD could mean VIX will bottom soon, perhaps right around 10.00, currently printing 10.49. Link

Jeff Bailey : 1/12/2007 12:38:47 PM

MM Profiles That I've made ... Traders should be swing trade stopped at $5.18 for BGO.

Traders should be stopped at $126.00 for SLV.

Jeff Bailey : 1/12/2007 12:37:15 PM

Disclosure: I currently hold bullish position in WAG.

Jeff Bailey : 1/12/2007 12:36:12 PM

Bullish swing trade call option alert for two (2) of the Walgreen WAG Apr $45 Calls (WAG-DI) at the offer of $3.10.

WAG $46.16 +0.21%

Keene Little : 1/12/2007 12:27:23 PM

Bearish divergences continue at new highs so I still like the short side but with the low volume today we could see some false spikes (in either direction).

Jane Fox : 1/12/2007 12:26:37 PM

ECbot will resume trading at 12:35EST

Keene Little : 1/12/2007 11:54:57 AM

Resistance at 1436.75 has now been tagged and with the bearish divergences at this new high, it's a good spot to try a short. Tight stop no higher than 143850. Quick try to see if it works.

Keene Little : 1/12/2007 11:45:14 AM

Maybe ES will get up and ring the bell at 1436.75. At least then we'll be able to see if resistance holds and we start a deeper pullback.

Jane Fox : 1/12/2007 11:42:42 AM

ECBOT has announce their markets have been halted.

Keene Little : 1/12/2007 11:40:29 AM

The market just refuses to pull back. I wonder if Helicopter Ben (Bernanke) has been active again this week.

Jane Fox : 1/12/2007 11:32:09 AM

ECBOT is currently unavailable for trading due to technical problems at the exchange.

Jane Fox : 1/12/2007 11:21:38 AM

Internals are telling me this is not a day to be putting my money on the table. The only winners today would be the dealers (brokers).

Jane Fox : 1/12/2007 11:03:11 AM

Here is McMillan weekly commentary.
Quite frankly, I thought this would be the week that we'd have a confirmed sell signal in hand, and we'd be seeing volatility increase and all manner of fun things would be back for option traders. In reality, the bears fumbled the ball once again, and the bulls were only too eager to pounce on it. With today's rally, the chances of a breakdown have become minuscule. Let's review the indicators.

The price chart of $SPX came perilously close to breaking down. Actually, intraday $SPX did penetrate below the trendline that has supported prices since last June. But it never closed there, as it rallied into the close of trading on those days. Now, a rally has returned it into the bullish channel. A close below 1408 would have indicated a bearish breakdown -- and it still would, but it's less likely to occur now that QQQQ has advanced to 6-year highs and appears to be leading the market upward. $SPX has not confirmed those 6-year highs, as there is resistance at 1430. So, at this time, $SPX is bounded by 1408 on the downside and 1430 on the upside. A move that breaks through either one should probably be heeded -- bullish on the upside, bearish on the downside.

The equity-only put-call ratios have remained on sell signals through the past three weeks or so. The standard chart doesn't rise as sharply as the weighted chart, but that's because of the distortions caused by dividend arbitrage (we intend to write an article discussing how that type of arbitrage is distorting sentiment indicators). Since these are 21- day moving averages, they won't necessarily roll back over to buy signals easily, but if they do, that's the end of the bearish scenario for a while.

Market breadth (advances minus declines) has been on a sell signal since just after Christmas. But the decline in the market was so modest that breadth never got down to true oversold conditions, which might have generated buy signals.

The volatility indices ($VIX and $VXO) were an excellent guide during the last couple of weeks. They basically remained bullish in that they never broke out to the upside. As it is, if $VIX closes above 12.70, that would still constitute an upside (bearish) breakout, but that seems unlikely now. There were several days when that breakout seemed imminent, but now $VIX is back below 11 again.

Tab Gilles : 1/12/2007 11:02:59 AM

Citrix Systems (CTXS) $30.35 +$0.40

Continues to climb today. Watch $31 level for resistance. Link

Keene Little : 1/12/2007 11:01:05 AM

I get the feeling the market is going to be held at the flat line today. If we do get a sideways move today it will look like a bullish continuation pattern (just like the ones we've consistently seen the past many months).

Jane Fox : 1/12/2007 10:43:05 AM

I think the order of the day is "Follow the VIX."

Jane Fox : 1/12/2007 10:38:43 AM

Dateline WSJ - Northwest Airlines Corp. filed a bare-bones Chapter 11 reorganization plan Friday that would give its unsecured creditors stock in the reorganized company and allow them to participate in a rights offering to buy more shares.

The airline, the nation's fourth largest in terms of passenger traffic, filed the plan without a disclosure statement, which would explain the terms of the plan in nonlegal language and would have to be approved before creditors could begin voting on the plan.

In a separate filing Friday, Northwest asked the U.S. Bankruptcy Court in Manhattan to give it until Feb. 15 to file the disclosure statement. The carrier said the committee representing its unsecured creditors has agreed to the extension.

Northwest filed its reorganization plan days before its exclusive control over its Chapter 11 case was set to end. The company has the exclusive right to file a reorganization plan through Tuesday.

Northwest, which has said it intends to exit bankruptcy protection this year, plans to raise capital through a rights offering and from private-equity investors, according to court papers. No other details of the potential investments were provided.

Jane Fox : 1/12/2007 10:37:42 AM

Odds of rate cut by end of June down to 26%

Keene Little : 1/12/2007 10:31:58 AM

Jane, those crude volume numbers certainly make it sound like a washout low. It could be good for a bounce in crude (not yet apparently) but after a small bounce I see the probability for oil to make it down to $48-49. That should get OPEC's knickers in a twist.

Keene Little : 1/12/2007 10:26:00 AM

It being a Friday before a holiday weekend we could see the market get trapped in a tight trading range today. Right now, the way YM looks to be sliding back from yesterday's high, it appears to be forming a bull flag. It may stay in a bull flag the rest of the day and that would suggest only a minor pullback before another push higher early next week (Tuesday since Monday is closed).

Jane Fox : 1/12/2007 10:25:14 AM

NEW YORK (MarketWatch) -- Nymex Holdings Inc. (NMX) set record crude oil volumes Thursday on its New York Mercantile Exchange as prices plummeted to a 19-month low.

Total crude oil volume was 800,731 contracts, smashing the previous record of 657,549 contracts set Tuesday, Nymex said Friday in a statement.

Nymex's main rival, IntercontinentalExchange Inc. (ICE), also set record crude volumes, with 377,672 WTI and 345,407 Brent contracts traded. ICE clocked record open interest for a second straight day, with 471,651 contracts

Jane Fox : 1/12/2007 10:08:40 AM

WASHINGTON (MarketWatch) -- Inventories at U.S. businesses rose 0.4% in November, slightly above expectations and just below the 0.5% increase in sales, the Commerce Department said Friday. The inventory-to-sales ratio, an indication of demand, remained at 1.30 for the second consecutive month. The last time the ratio was higher was in February 2005. Economists had been expecting the nation's inventories to rise 0.3% in November, according to a survey conducted by MarketWatch.

Jane Fox : 1/12/2007 9:59:44 AM

Gold breaks its overnight high as the US $ breaks its overnight low.

Jane Fox : 1/12/2007 9:57:48 AM

TRIN breaking its PDH so I think those PDHs I showed earlier will hold for now.

Jane Fox : 1/12/2007 9:57:17 AM

TRIN is moving to new daily highs as price is making new daily highs. The TRIN is very confusing some times.

Jane Fox : 1/12/2007 9:50:36 AM

I suspect we will see resistance at PDHs. Link

Keene Little : 1/12/2007 9:45:02 AM

If this pushes higher then keep an eye on ES 1436.75 which is the level I mentioned yesterday that could be the end of this week's rally. That's where the downtrend line from mid-December and the broken uptrend line from November 28th cross this morning. But it's possible yesterday's high was it and we'll get the pullback now.

Jane Fox : 1/12/2007 9:36:30 AM

AD line is a neutral +474 and AD volume above 0 and climbing. The bulls have the ball but do not have field advantage.

Keene Little : 1/12/2007 9:35:27 AM

Watch the head fake move out of the gate here.

Jeff Bailey : 1/12/2007 9:28:29 AM

I have a Dr.'s appointment this morning and the roads are slick/snowy so I've got to make tracks. I hope to be back by 12:00 EST.

Jeff Bailey : 1/12/2007 9:27:29 AM

Swing trade short adjust stop alert ... for Bema Gold (BGO) to $5.18 (from $5.15).

yg is $616.50 and just off yesterday's high of $617.10.

BGO $5.11 x $5.15 on INET

Jane Fox : 1/12/2007 9:24:01 AM

I had to bail on my Q puts yesterday because my stop was new highs but I may get back in to DIA puts.

Do you see price making new highs but the MACD and RSI are not? Link

Keene Little : 1/12/2007 9:21:19 AM

With a slight negative bias to the overnight futures we'll see if that carries through into today. It's possible we'll see a minor new high for the 2-day rally but it looks like we're ready for a pullback. As I've been saying for a number of days the EW pattern would look best with a pullback followed by one more rally to make THE high but the risk here (for bulls) is that we may be making a top here and now (after what looks like a 3-wave move up from Monday).

I'd want to start testing the short side with the knowledge that you may be early and get stopped out with another push higher next week. But if the Thursday before opex week is the head fake day and we rallied yesterday then that potentially sets up a down week next week. Just something to watch for.

Jane Fox : 1/12/2007 9:10:21 AM

WE got the required bounce off the 50EMA and the MACD did not even make above the 0 line. I think the next test of the 50EMA (if it makes another test) will fail and we get our close below the 50EMA. Link

Jane Fox : 1/12/2007 9:02:59 AM

WASHINGTON (MarketWatch) -- Prices of goods imported into the United States climbed by 1.1% in December, led by big increases for petroleum and natural gas.

The data reported Friday by the Labor Department follow a revised 0.5% gain in November, suggesting some inflationary pressure from abroad.

December's imported petroleum prices rose by 4.8%, their biggest increase in seven months, according to the Labor Department report. And imported natural-gas prices climbed by 10.1%, following a gain of 43.2% in November.

Despite the latter's recent gains, prices for natural gas are down 29% in the past year. Economists surveyed by MarketWatch had been expecting import prices to climb by 0.8% in December

Jane Fox : 1/12/2007 9:01:07 AM

Crude tags its PDL but does not break it.

Gold and the $ are in sync, $ down and Gold up. Link

Jane Fox : 1/12/2007 8:59:10 AM

The overnight session was mostly sideways. Link

Jane Fox : 1/12/2007 8:52:29 AM

DOW JONES NEWSWIRES

Pepsico Inc. (PEP) confirmed it is planning to launch a series of new can designs on its namesake cola as part of a marketing campaign.

The Purchase, N.Y., beverage and snack-food company said the Pepsi logo and name-lettering will remain the same, but the background graphics will change every few weeks.

As reported in The Wall Street Journal, the Pepsi-Cola cans will begin to appear over the next several days with 35 new designs, such as depictions of DJs, snowboards, emoticons and other images.

Jane Fox : 1/12/2007 8:48:10 AM

SAN FRANCISCO (MarketWatch) -- Shares of Advanced Micro Devices Inc. slumped in pre-open trading Friday after the company warned that significantly lower microprocessor average selling prices have damped fourth-quarter operating income.

The Sunnyvale, Calif.-based chip company (AMD) said late Thursday the lower microprocessor average selling prices "largely" offset a "significant" increase in unit sales.

The company also expects operating income, excluding its recent acquisition of ATI Technologies Inc., to be "substantially" lower than the prior quarter's result.

Jane Fox : 1/12/2007 8:46:45 AM

WASHINGTON (MarketWatch) - U.S. retail sales increased 0.9% in December, the best gain in five months, the Commerce Department said Friday.

Auto sales rose 0.3% in December. Excluding car sales, seasonally adjusted retail sales rose 1.0% in December. This was the largest gain since January.

Gasoline sales rose 3.8% in December. This was the largest increase since April. Excluding gas, retail sales increased 0.6%.

Economists were expecting a 0.7% gain for overall sales and 0.5% excluding autos, according to a survey conducted by MarketWatch.

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