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Keene Little : 3/12/2007 10:53:19 PM

I think the DOW does as good a job as any in showing what levels we'll want to watch carefully for where a high for the bounce might occur. The 30-min chart shows a parallel up-channel and a Fib projection for equality in an a-b-c move up at 12504. A 62% retracement of its decline is at 12509 so there's good correlation there (price depiction shown in dark red). Link

There is a lower Fib projection at 12405 (wave-c = 62% of wave-a) which is close to the 50% retracement at 12420 and that is shown by the light red price depiction. But there is the possibility that a different type of corrective bounce is playing out from last Monday's low and that is shown in dark red on this 15-min chart: Link

The interesting thing about this wave count is that there are internal Fib projections at 12373 and 12382, just above the 43% retracement at 12368 (the most common Fib retracement for a 2nd wave correction). It would also be a move back up to a broken uptrend line that stopped the rallies on Monday.

Therefore, if we get an early pop higher on Tuesday, the 12370-12380 area is the first level I'd watch for a potential high. Not much higher is the 12400-12420 area and if the bulls really get crazy then it could make a run for the 12500 area by Wednesday. Now we'll watch to see if we get the rally or if instead price breaks the uptrend line near 12290, which would be more immediately bearish.

Keene Little : 3/12/2007 10:05:42 PM

Tuesday's pivot tables: Link and Link

OI Technical Staff : 3/12/2007 9:59:59 PM

The Market Monitor has been archived. You may view it and any previous days here: Link

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Keene Little : 3/12/2007 4:45:03 PM

I'm looking at a potential wave count for the rally off last Monday's low that could be something a little more complex than a straightforward a-b-c rally that I showed earlier (the previous SPX 30-min chart I had posted had incorrect labeling so this one shows the correct a-b-c count and the potential to rally to the 1430 area: Link ). This is 30-min chart for the DOW that shows the a-b-c rally potential to either the 12400 or 12500 levels. Link

Without trying to make it too complicated I wanted to show one other possibility since it tells us to stay aware of a potential rally failure slightly lower. Zooming in just a bit on the rally from last Monday, this DOW 15-min chart shows a potential double zigzag count, which is basically two a-b-c moves separated by an x-wave. Link

The 15-min chart looks messy with all the trend lines and Fibs but what I wanted to show is that there is a cluster of Fibs pointing to the DOW 12370-12380 area that we should keep our eye on in case it looks like it's going to top out there, which it would likely do Tuesday morning. The internal Fib projections for the double zigzag count are at 12373 and 12382 and the 43% retracement level (most common retracement for 2nd wave corrections) is at 12368.

Bottom line for the DOW (and the other indices) is to watch their uptrend lines now--a break below those should be the signal that the top for this correction is complete and it will be time to look for short entries. Until that happens, respect the short term up trend for now.

Jeff Bailey : 3/12/2007 4:21:42 PM

April Crude Oil (cl07j) settled down $1.14, or -1.90% at $58.91.

April Unleaded (rb07j) settled up more than a penny at $1.9105.

Jeff Bailey : 3/12/2007 4:17:34 PM

Closing U.S. Market Watch found at this Link

Keene Little : 3/12/2007 4:15:55 PM

For some reason there was a problem posting to the MM at the end of the day so apologies for the silence there.

NDX found resistance at its previously broken uptrend line from last Monday, both this morning and at this afternoon's rally. But the late-day rally pushed it above its 10-dma so now the 4 indices have recovered their broken 10-dma's. I like the Fib correlation around 1782 by Wednesday for an upside target but keep an eye on 1765-1772 in case that becomes harder resistance. Link

Jeff Bailey : 3/12/2007 4:00:59 PM

Closing Internals found at this Link

Keene Little : 3/12/2007 3:51:34 PM

The RUT tagged its 43% retracement level, the most common retracement for a 2nd wave correction. The other indices have not accomplished that yet. For the RUT that level is also very close to gap closure at 790.60, which it did not do on this afternoon's rally. That's still beckoning the RUT. The new uptrend line for the RUT, similar to the one I just showed for the DOW, is currently near 787 which is also the location of its recoverd 10-dma today. Support should hold there if there's to be more upside. Link

Marc Eckelberry : 3/12/2007 3:47:52 PM

Maybe not...

Marc Eckelberry : 3/12/2007 3:46:03 PM

The prize for NQ is a 1776.25 close and it is losing it.

Keene Little : 3/12/2007 3:44:58 PM

The DOW tagged almost to the penny its downtrend line off the Feb highs and the previously broken uptrend line from last week. Now we'll watch the new uptrend line from last Monday's low, currently near 12287. Having rallied back above its 10-dma at 12293 keep an eye on that level for support, or not. If support holds then we should get a continuation higher towards at least the 12400 area. Link

Jeff Bailey : 3/12/2007 3:37:35 PM

A yenning for some op-ex positioning.

Jeff Bailey : 3/12/2007 3:36:23 PM

YM 12,409 ... off best levels of 12,407.

Jeff Bailey : 3/12/2007 3:35:53 PM

SPY $140.94 +0.11% ... off best levels of $141.34.

Keene Little : 3/12/2007 3:34:53 PM

CME's pattern leaves open several possibilities. Zooming in a little on the daily chart I posted at the bottom of today's updates (10:46 PM -- Link ), the 120-min chart looks a little confusing with the multiple trend lines and wave counts. Currently it's struggling with its downtrend line from the January high and looks like it could roll back over at any time. At this point the pullback looks corrective and leads me to believe it will head higher again rather than hard down. Link

If CME rallies a little higher out of its current consolidation and tops out below 600 then it will be possible for that move to end its longer term rally. Right now it's too difficult to tell from the wave count what will happen next. But I think the immediate-down wave count (in dark red) is the least likely.

Jeff Bailey : 3/12/2007 3:24:52 PM

EIA: US Retail Gasoline +5.4c On Week To $2.559/Gallon

Jeff Bailey : 3/12/2007 3:22:57 PM

EUR/JPY 155.18 (unch) ...

Jeff Bailey : 3/12/2007 3:21:15 PM

USD/JPY 117.62 -0.59% ... still "says" intra-day short to me.

SPY $141.21 +0.30% ... and option montage "says" possible NAKED CALL squeeze. Some "pain" could be given to the $142 puts with OI heaviest at 68,763.

Jane Fox : 3/12/2007 3:16:19 PM

Economic Reports

8:30a.m. Feb Retail And Food Sales. Expected: +0.4%. Previous: Unch.

8:30a.m. Feb Retail And Food Sales, Ex-Autos. Expected: +0.4%. Previous: +0.3%.

10:00a.m. Jan Business Inventories. Expected: +0.1%. Previous: Unch.

Jeff Bailey : 3/12/2007 3:15:13 PM

03:00 Internals found at this Link

Marc Eckelberry : 3/12/2007 3:12:37 PM

Exit -.50. I have no clue why my posts are getting in 20 mn late, so out it is for the monitor.

Marc Eckelberry : 3/12/2007 3:10:52 PM

I'm having a rough time posting. If you got that, exit right before the close or hedge with YM during the TXN update.

Marc Eckelberry : 3/12/2007 3:10:09 PM

Short NQ 1778, stop 1781.

Marc Eckelberry : 3/12/2007 3:07:09 PM

I'm short as long as NDX can't get past 1761.40, January 2006 high. Above that, forget being short, we will go up to the Feb gap. On the immeditae front, 1776.25 for NQ was a key battle, but it's not the war, since cash has not done the same deed.

Jeff Bailey : 3/12/2007 3:03:10 PM

03:00 Market Watch found at this Link

Jeff Bailey : 3/12/2007 3:00:50 PM

SPY Options Montage at this Link

Jane Fox : 3/12/2007 3:00:40 PM

YM and ER both broke through their respective PDHs. Link

Keene Little : 3/12/2007 2:59:15 PM

The uptrend line for SPX is near 1403 and its recovered 10-dma is 1405.48. It can't pull back much further without breaking support. As long as it holds above 1403 there's still a good chance for a continuation of the rally. I don't have good Fib correlation for the top, as it runs all the way from 1412 to 1432 (not exactly helpful). Link

But there's an interesting Fib cluster around 1415-1418 so that's where I'm hoping to see a bounce show signs of failure. The common timeframe I'm seeing for the end of the bounce is late Tuesday or early Wednesday (if support holds and it pushes higher again).

Keene Little : 3/12/2007 2:55:44 PM

NDX is in synch with what I see for the DOW and SPX--wave-c of the a-b-c for wave-2 looks to be happening now. The two Fib targets for wave-c match up with the 38% and 62% retracements near 1765 and 1782. Link

Jane Fox : 3/12/2007 2:50:10 PM

WASHINGTON (MarketWatch) -- The U.S. government spent almost twice as much in February as it took in, the Treasury reported Monday.

It said the federal budget deficit widened to $120 billion from $119.2 billion a year earlier, according to the report.

The deficit was a record for the month of February and was slightly below the Congressional Budget Office estimate of about $123 billion.

So far this fiscal year, the budget deficit has totaled $162.2 billion, down about 26% from $218 billion in the same period a year ago. The improvement largely reflects lower spending on hurricane relief and higher tax collections.

Excluding the Social Security and other trust funds, the deficit totaled $123.9 billion in February and $239.6 billion for the fiscal year.

Jeff Bailey : 3/12/2007 2:50:04 PM

SPY Mar $140 Calls (SPF-CJ) show 2,232 traded on CBOE. Mar $141 Calls (SFB-CK) seeing action of 5,176 with Dn/Uptick 177:2,199 quite bullish.

Jeff Bailey : 3/12/2007 2:47:44 PM

YM 12,435 after kiss of DAILY R1.

Tense moments near-term as SPY near $140.40. SPY 141.24.

VIX.X 13.90 -1.41% ...

Keene Little : 3/12/2007 2:44:54 PM

The pattern looks similar for the DOW--upside targets are the 50% and 62% retracements of its decline, so 12420 and just above 12500 (which is also where the wave-2 rally would have two equal legs up). Wednesday looks like a good time projection if it's to hit the top of its up-channel at the 12500 level. Link

Keene Little : 3/12/2007 2:36:14 PM

With the push higher out of the recent consolidation I'm going to assume for now that the next rally leg has started. The two upside Fib targets for SPX are near 1420 and then as high as 1432. As the rally leg develops I'll be able to get a better idea, once we get a 5-wave move, where the high for the bounce is most likely to be. Link

Marc Eckelberry : 3/12/2007 2:21:05 PM

Someone lit a fire under INTC.

Keene Little : 3/12/2007 2:19:58 PM

We've got a sudden interest in buying the market--program buying is hitting all indices together.

Jeff Bailey : 3/12/2007 2:19:50 PM

U.S. Feb Deficit Comes In Below Estimate

DJ- The U.S. federal government ran a February budget deficit of $120.00 billion, up 0.6% from the year-earlier monthly deficit as tax receipts and outlays both set records, the Treasury Department said Monday.

Treasury's monthly budget statement shows receipts were $120.27 billion in February, up 6.6% from a year earlier and a record for the month of February. Meanwhile, outlays were $240.26 billion, also a record for the month and up 3.5% from a year earlier.

The February deficit came in below the Congressional Budget Office's estimate of a $123 billion deficit during the month.

The Treasury on Monday left January's budget surplus figure unrevised at $38.24 billion.

The February deficit came in below the Congressional Budget Office's estimate of a $123 billion deficit during the month.

Marc Eckelberry : 3/12/2007 2:19:36 PM

Never short a market with a VIX in the lower range of the day, i.e a dull market. Now we need to see NQ close above 1776.25.

Jeff Bailey : 3/12/2007 2:15:49 PM

Current OPEN MM Profiles that I've made and Watch List at this Link

Keene Little : 3/12/2007 2:05:54 PM

It's certainly looking like today is not going to be one of the higher volatility days during opex. This is uber boring.

Jeff Bailey : 3/12/2007 1:57:06 PM

VXO 13.80 -3.15% ... DAILY Pivot 14.45, S1 13.69, S2 13.13

Jeff Bailey : 3/12/2007 1:56:11 PM

VIX.X 14.21 ... session low. DAILY S1 13.63 with S2 13.17.

Jeff Bailey : 3/12/2007 1:48:07 PM

VIX.X ... PnF chart from Dorsey/Wright at this Link

Marc Eckelberry : 3/12/2007 1:46:04 PM

TXN update after the close and retail numbers tomorrow. Hedge your bets.

Marc Eckelberry : 3/12/2007 1:43:27 PM

Bear flags everywhere, even with gold. NQ better close above 1776 (38.2% sell-off), or this rally will die a slow death.

Jeff Bailey : 3/12/2007 1:41:21 PM

VIX.X 14.49 +2.83% ... 0.50-point box chart Link

Note: On 03/02/07 there was a "bad tick" in the VIX.X down to 12.50. Column of "O" in early March (after red 3) should only be to 16.50, then X to 20.00, and subsequent decline to 13.50.

Jeff Bailey : 3/12/2007 1:32:10 PM

Fed's Kroszner: Not sure if market volatility at right level

Jeff Bailey : 3/12/2007 1:31:42 PM

Fed's Kroszner: Market volatility still low historically

Marc Eckelberry : 3/12/2007 1:31:38 PM

Pin job at NDX 1750/QQQQ 43. That pretty much sums it up.

Keene Little : 3/12/2007 1:27:33 PM

Keene, based on your updated charts, do u still see a sharp move down towards the closing of this opex week even if today resoves in a move up towards 795-800 in RUT. GG

Going with the higher-odds expectation for another rally leg out of the current consolidation, it becomes a question of how high will the next leg up get to. I think two likely targets are the 50% and 62% retracements of the decline. Link

Depending on how long it takes to get there and then what kind of decline develops from there we could see this week act essentially like a consolidation week where price doesn't go anywhere. That's the risk for a directional play this week. If you're in a spread position hoping for price to expire around this area then the consolidation scenario is what you're hoping for.

The risk for anyone in a bull put spread, in my opinion, is a sudden flush to the downside, similar to what we saw off the February high. In that case we could see the RUT hit 730 by Friday without a problem. I wouldn't bet on that kind of move but that's the risk I currently see.

Jeff Bailey : 3/12/2007 1:17:41 PM

Fed's Kroszner:

DJ- The Federal Reserve should consider a broad array of inflationary influences in setting monetary policy given the increasing complexity of the modern economy, Federal Reserve Governor Randall Kroszner said Monday.

Since the mid-1980s inflation dynamics have changed profoundly as the Fed and many other central banks have largely succeeded in achieving low, stable inflation and public expectations that price growth will remain moderate, Kroszner said in the text of remarks prepared for delivery to the National Association of Business Economics.

"Prudent policymakers should take an eclectic approach and base their policy decisions on both a wide variety of indicators and views about how the economy may work and avoid a narrow focus on economic slack," he said.

Over the past two decades, gauges of "resource utilization" - such as the unemployment rate - haven't been very useful signals about the course of inflation over the next one- to two-year period, the Fed governor said. So it has become harder to estimate economic slack in real time, he said.

Jeff Bailey : 3/12/2007 1:14:16 PM

01:00 Internals found at this Link

Jeff Bailey : 3/12/2007 1:02:32 PM

01:00 Market Watch found at this Link

Keene Little : 3/12/2007 1:02:28 PM

One thing that is making me question my expectation for another leg higher out of this consolidation is that the price pattern is looking very similar to what it did off the February highs. The slow choppy pullback off those highs looked corrective and had me thinking we'll get another push higher before topping out. Then it suddenly collapsed. When looking at the 30 or 60-min charts that pattern looks to be repeating here.

So does that mean we'll get another sudden collapse? That's the risk if you try the long side here. The odds for the choppy pullback say we should look for another leg up but a repeat performance says look out below soon. I think the best way to play it here is to look for another leg up (whether you play it or not) but if we get a break down then look to get short any minor bounces.

Jeff Bailey : 3/12/2007 12:59:58 PM

Fed's Kroszner: Wants "eclectic" approach to monetary policy

Jeff Bailey : 3/12/2007 11:55:06 AM

NYSE a/d 1,692/1,471 ... a little too strong to give YM short much room above DAILY Pivot.

Jeff Bailey : 3/12/2007 11:52:25 AM

YM 12,380 .... but those "?," which would be some selling had me looking at YM's DAILY Pivot being the key intra-day level of resistance, where YM might at least be vulnerable to its WEEKLY Pivot.

Could VERY WELL make the tie between a USD/JPY 119.00 as equivalent to YM's MONTHLY Pivot.

Jane Fox : 3/12/2007 11:50:53 AM

SAN FRANCISCO (MarketWatch) -- Gold futures moved higher Monday afternoon, resuming earlier gains as investors turned their attention away from uncertainty over global demand and falling oil prices to concerns over dollar weakness and declining gold supplies.

"The gold market had a significant amount of bullish information out this morning from Buenaventura dehedging announcements, continued slumping mine production from Australia, dollar weakness and more," but oil prices had been putting the market under some pressure, said Neal Ryan, director of economic research at Blanchard.

Jeff Bailey : 3/12/2007 11:49:59 AM

US Dollar / Yen Cross Rate PnF chart at this Link ... BLUE "X" and "?" would reflect today's action. Since we were in a column of X at Friday's close, first question is ... "Did USD/JPY see trade at 118.396?" Since answer would be "yes" I chart the X.

Jane Fox : 3/12/2007 11:37:59 AM

Gold is testing its resistance and I am going to watch how much of a retracement it takes from here. A shallow retracement and a higher low will give me a hint that another run at this resistance could break through. Of course with this market you have to keep your eye on the $ and to a lesser extent crude. Link

Jeff Bailey : 3/12/2007 11:33:45 AM

Federal Reserve Governor Randall Kroszner speaking at the NABE Economic Policy conference.

Jeff Bailey : 3/12/2007 11:32:32 AM

Forex Economic Calendar (Today) at this Link

Jeff Bailey : 3/12/2007 11:23:39 AM

VIX.X 14.50 +2.90% ... somewhat sloppy, but edging back below MONTHLY Pivot. Looked like it wanted to check out WEEKLY Pivot last 30-minute, but fading.

Jeff Bailey : 3/12/2007 11:21:53 AM

YM 12,386 ... session high has now been 12,394 ... juuust above that WEEKLY 38.2% of 1,2391.

Dollar bouncing a bit from morning low vs. yen.

Sure looks like YM and SPY.

Jeff Bailey : 3/12/2007 11:14:45 AM

USD/JPY 117.68

Jeff Bailey : 3/12/2007 11:14:05 AM

YM short stopped alert 12,388

Keene Little : 3/12/2007 11:13:44 AM

Almost across the board we're seeing the indices struggling with their 10-dma's. If the market can push above these then there's a good chance we'll get a decent rally--look for the 20 or 50-dma's to be the next resistance levels. The tops of parallel up-channels, similar to the ones I drew on the 60-min charts posted below (10:46 PM), will also be a good guide for upside potential. Assuming we'll get another push higher we can then redraw the channels based on the end of the pullback.

Jeff Bailey : 3/12/2007 11:12:53 AM

USD/JPY ... 5-minute interval chart Link

Jeff Bailey : 3/12/2007 11:10:51 AM

USD/JPY 117.65 -0.56% ...

Jeff Bailey : 3/12/2007 11:09:23 AM

YM 12,377 ... comes to DAILY Pivot.

Jeff Bailey : 3/12/2007 11:08:41 AM

OIL, GAS ROYALTIES BILL TO BE UNVEILED (update)

DJ- Senate's top lawmaker on energy policy, who supports renewable energy initiatives, seeks to unveil a bill later this month that would address the issue of oil and natural gas companies drilling in federal waters without paying royalties to federal treasury.

Jeff Bailey : 3/12/2007 11:01:49 AM

COUNTRYWIDE DOWNGRADED BY WACHOVIA

DJ- Mortgage lender downgraded to underperform from market perform at Wachovia, on weakness in secondary mortgage liquidity market. Countrywide's volume of subprime loans in February falls to $2.6 billion from $2.8 billion a year ago.

CFC $35.01 -3.01% Link ...

Jeff Bailey : 3/12/2007 10:59:32 AM

HALLIBURTON LOOKS TO DUBAI FOR EXPANSION

DJ- U.S oil services giant will shift its corporate headquarters from Houston to Dubai. Halliburton will keep a corporate office in Houston but CEO Dave Lesar says he will spend much of his time running the firm in the United Arab Emirates.

Jeff Bailey : 3/12/2007 10:57:39 AM

UNITEDHEALTH TO BUY SIERRA HEALTH FOR $2.6B

DJ- UnitedHealth agrees to pay $43.50 a share, or $2.6 billion for Sierra Health, a 21% premium to its Friday close. Sierra expects fiscal 2007 loss due to higher-than-expected pharmacy costs.

UNH $53.25 +0.47% Link ...

Sierra Health Systems (SIE) $41.56 +15.76% Link

HMO.X 1,880.51 +2.24% Link ...

Jeff Bailey : 3/12/2007 10:54:00 AM

DJ Survey- US Feb Retail Sales Seen +0.3%

Keene Little : 3/12/2007 10:46:01 AM

Just got back in and first impression when I looked at the charts is consolidation meaning we should see another rally leg out of this. But a consolidation could include a deeper pullback and the gaps from March 8th could get closed before we get another leg up. It doesn't have to happen but that would be a healthy drop from the current levels. Bottom line is that trading could be a challenge until this clears up some.

Jeff Bailey : 3/12/2007 10:45:46 AM

YM07M ... 12,363 ... Day trader's 5-minute interval chart at this Link

Tab Gilles : 3/12/2007 10:39:31 AM

$NAHGH/$NALOW/$BPNDX/$BPNDX Link Profund UltraShort USPIX Link

Jeff Bailey : 3/12/2007 10:24:14 AM

YM short alert ... here at 12,358 , stop 12,388 , target 12,319

Jeff Bailey : 3/12/2007 10:16:46 AM

11:00 Internals found at this Link

Friday's Internals found at this Link

Jane Fox : 3/12/2007 10:04:28 AM

The internals are telling me that today is not a good day for trading and that the best trade is no trade.

Jeff Bailey : 3/12/2007 10:02:45 AM

11:00 Market Watch found at this Link

Jeff Bailey : 3/12/2007 9:59:05 AM

KBW Bank Index ($BKX.X) 114.02 -0.48% ... right at its 03/02/07 close.

Jeff Bailey : 3/12/2007 9:47:35 AM

USD/JPY 117.55 -0.65% ...

Jeff Bailey : 3/12/2007 9:46:13 AM

S&P Depository Receipts (SPY) $140.38 -0.28% ... 60-minute chart with updated WEEKLY pivot retracement at this Link

Jane Fox : 3/12/2007 9:25:50 AM

Here is how the markets are trading in relation to their PDRs. Link

Jane Fox : 3/12/2007 9:24:01 AM

VIX to new daily lows is leading the way and ES is now making new daily highs. I will not try a long because the AD line and volume are not bullish enough and I do not think there is a lot of upside from here.

Jane Fox : 3/12/2007 9:17:01 AM

NEW YORK (MarketWatch) -- Treasury prices gained early Monday, sending yields lower, as a new set of subprime lending worries sent cash flows out of the equities market and into bonds and other low-risk instruments.

Jeff Bailey : 3/12/2007 9:05:10 AM

10:00 Market Watch found at this Link

Jane Fox : 3/12/2007 9:00:48 AM

NEW YORK (MarketWatch) -- Shares of Lumera Corp. (LMRA) rose about 35% to $4.93 in morning trading on Monday. Earlier, Lumera said it has received a purchase order from Lockheed Martin Corp. (LMT) for its high electro-optic activity materials. Financial terms weren't disclosed. The agreement runs through December 2007, when Lockheed will advise Lumera of its plans regarding a commercial license for the materials, the company said. Bothell, Wash.-based Lumera is a nanotechnology company.

Jane Fox : 3/12/2007 8:58:41 AM

I will be expecting to see support at ES's PDL however.

Jane Fox : 3/12/2007 8:58:18 AM

I am trying a short here using ES and have a stop just above the open at 1415.00

Jeff Bailey : 3/12/2007 8:54:03 AM

New Century (NEW) $3.21 ... Halted for trade.

Jane Fox : 3/12/2007 8:51:10 AM

AD line is now a -267. The bears don't have the kind of control that would convince me to do short but I certainly would not be long either. Best to be flat right now.

Jeff Bailey : 3/12/2007 8:49:46 AM

DJ- US Senate To Unveil Bill On Oil, Gas Royalties Within Weeks

Jane Fox : 3/12/2007 8:47:47 AM

SAN FRANCISCO (MarketWatch) -- Oil and gas stocks drifted downward at the open Monday with weaker crude oil prices. The Amex Oil Index ($XOI) was off 0.8%, the Amex Natural Gas Index ($XNG) slipped 0.7%, and the Philadelphia Oil Service Index ($OSX) retreated 0.6%. The April crude oil contract was off 56 cents at $59.48 a barrel on the New York Mercantile Exchange.

Jane Fox : 3/12/2007 8:45:48 AM

NEW YORK (MarketWatch) - New Century (NEW) shares were halted at 9:30 a.m. on news pending, according to market sources. The stock had dropped 56% to $1.42 in pre-market trades on the mortgage lender's latest credit woes. (

Jeff Bailey : 3/12/2007 8:44:47 AM

Dow Chemical (DOW) $43.71 +1.65% ... upgraded at Lehman Brothers to "equal-weight" from "underweight"

Jane Fox : 3/12/2007 8:36:36 AM

AD line is a -78 and AD volume below 0. This is neutral and no one is in control this morning.

Jane Fox : 3/12/2007 8:23:50 AM

NEW YORK (MarketWatch) -- New Century's woes deepened Monday after the stricken subprime mortgage firm said its lenders are cutting off credit.

Shares of Shares of New Century (NEW) fell 42% in premarket trade, slipping below $2 for the time, to trade at $1.86. The shares closed at $3.21 a Friday.

The firm said in a filing with the Securities and Exchange Commission Monday that lenders under its short-term repurchase agreements and aggregation credit facilities had either discontinued their financing or notified the company they plan to do so.

In the filing, New Century said as of March 9 some of its creditors have purported to terminate the company's servicing rights.

New Century said it's been informed by Morgan Stanley (MS) of problems with a $265 million financing agreement.

Jane Fox : 3/12/2007 8:21:21 AM

GREENWICH, Conn. (MarketWatch) -- Despite the recent market jitters and some mixed trading among last week's new issues, BigBand Networks has all the key ingredients of a hot technology IPO.

The venture-backed, Redwood City, Calif.-based company sells broadband networking gear that enables cable and telecom companies to efficiently deliver bandwidth-hungry video services.

The offering consists of 10.7 million shares (3.2 million from insiders) at a price of $10-$12 per share, giving BigBand a proposed market capitalization of $774 million.

Lead underwriters Morgan Stanley and Merrill Lynch expect to price the deal Tuesday evening.

Jane Fox : 3/12/2007 8:11:40 AM

US$ fell overnight but so did gold pressured by crude's downward move because crude traders see the upcoming meeting of key oil producers in Vienna, where no production change is expected, as a reason to sell. Link

Jane Fox : 3/12/2007 8:06:51 AM

Around 4:00 EDT all the markets hit a high but have been falling ever since, which does not bode well for the intraday session. I suspect we will see an AD line below 0 at the open and that the bears will be in control. Link

Jane Fox : 3/12/2007 8:01:42 AM

NEW YORK (MarketWatch) -- UnitedHealth Group on Monday said it agreed to acquire Sierra Health Services Inc. for about $2.6 billion, giving the health insurer a larger footprint in the fast-growing Southwest region and boosting its senior health care capabilities.

Under the terms of the deal, UnitedHealth (UNH) will acquire all of the outstanding shares of Sierra, a diversified health care services provider, for $43.50 per share in cash. The offer provides a 21% premium to Sierra's closing price of $35.90 on Friday.

UnitedHealth also reiterated that it plans to buy back about $4 billion to $4.5 billion in stock in 2007 under its ongoing share repurchase program.

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