Market Summary 11-2-07

Index	Last	Chg	% Chg
DJ Industrials	13595.1	27.23	0.20%
Nasdaq Comp	2810.38	15.55	0.56%
S&P 500	1509.65	1.21	0.08%
DJ Wilshire 5000	15268.82	7.73	0.05%
Russell 2K	797.78	2.6	0.33%
Nasdaq 100	2213.86	16.79	0.76%

Issues	NYSE	Nasdaq	Amex
Advancing	1,535	1,485	586
Declining	1,750	1,498	628
Unchanged	95	118	84
Total	3,380	3,101	1,298
New 52 Wk Hi	103	56	47
New 52 Wk Lo	258	244	43
Total Vol	1,711,572,940	2,437,615,861	45,827,893
Advancing Vol	744,174,880	1,510,071,841	28,301,693
Declining Vol	941,797,860	804,177,728	14,487,300
Unchanged Vol	25,600,200	123,366,292	3,038,900

Futures	Last	Change
Crude Oil	95.75	2.26
Natural Gas	8.351	-0.286
Gold, Dec.	810.1	16.4

WEEKLY CHANGE:

Index	1 Wk % Chg	Prior Wk %
DJ Industrials	-1.53%	2.11%
Nasdaq Comp	0.22%	2.90%
S&P 500	-1.67%	2.31%
DJ Wilshire 5K	-1.61%	2.26%
Russell 2000	-2.87%	2.83%
Nasdaq 100	0.88%	2.98%
Crude Oil	4.22%	3.98%
Natural Gas	7.60%	0.53%
Gold	2.66%	2.43%

ETFs Volume >1M and Gainers/Losers

Sorted by Price % Chg

Fund Name	Ticker	Volume	Vol 3M Avg	Vol % Chg	Price %Chg
UltraShort Real Estate ProShares	SRS	1,264,299	652,268	94%	5.41%
UltraShort Financials ProShares	SKF	2,854,061	807,939	253%	4.63%
Market Vectors Gold Miners ETF	GDX	3,212,202	2,007,960	60%	3.87%
United States Oil	USO	2,714,900	2,850,260	-5%	3.02%
Oil Services HOLDRs	OIH	8,744,300	8,951,250	-2%	2.57%
streetTRACKS Gold Shares	GLD	9,912,700	7,225,350	37%	2.44%
iShares MSCI Germany Index	EWG	1,425,900	1,257,180	13%	2.33%
iShares MSCI Canada Index	EWC	2,031,000	1,009,520	101%	2.22%
Energy Select Sector SPDR	XLE	28,034,577	22,129,500	27%	1.88%
iShares MSCI Malaysia Index	EWM	1,759,700	2,649,260	-34%	1.67%
iShares MSCI Australia Index	EWA	3,042,000	1,918,110	59%	1.08%
Ultra QQQ ProShares	QLD	4,280,467	2,415,070	77%	1.06%
Materials Select Sector SPDR	XLB	10,723,736	8,389,900	28%	0.90%
Industrial Select Sector SPDR	XLI	6,475,303	5,372,950	21%	0.90%
Utilities Select Sector SPDR	XLU	6,411,362	6,592,530	-3%	0.82%
PowerShares QQQ	QQQQ	217,882,894	141,137,000	54%	0.78%
iShares Russell 2000 Growth Index	IWO	3,848,357	4,396,980	-12%	0.69%
Consumer Staples Select Sector SPDR	XLP	2,536,923	2,933,540	-14%	0.65%
SPDR S&P Homebuilders	XHB	4,246,332	5,249,410	-19%	0.62%
iShares Russell 1000 Growth Index	IWF	7,177,114	2,739,160	162%	0.61%
iShares MSCI Emerging Markets	EEM	19,730,300	16,255,200	21%	0.57%
iShares MSCI EAFE Index	EFA	9,559,700	7,349,530	30%	0.56%
PowerShares Gldn Dragon USX China	PGJ	1,672,057	1,138,530	47%	0.54%
Semiconductor HOLDRs	SMH	8,264,400	10,713,200	-23%	0.53%
iShares Russell 2000 Index	IWM	130,181,743	102,721,000	27%	0.49%
iShares MSCI Singapore Index	EWS	3,520,300	4,024,930	-13%	0.40%
iShares Lehman 20+ Year Treas Bond	TLT	1,927,700	1,955,630	-1%	0.32%
Ultra S&P500 ProShares	SSO	2,067,965	1,324,470	56%	0.24%
Technology Select Sector SPDR	XLK	5,332,821	3,461,000	54%	0.21%
DIAMONDS Trust, Series 1	DIA	20,988,192	16,120,500	30%	0.15%
iShares S&P SmallCap 600 Index	IJR	1,827,100	2,171,640	-16%	0.15%
Rydex S&P Equal Weight	RSP	1,124,900	889,011	27%	0.14%
SPDRs	SPY	331,228,171	200,129,000	66%	0.11%
iShares MSCI Hong Kong Index	EWH	8,041,465	6,603,560	22%	0.09%
iShares S&P 500 Index	IVV	2,723,310	2,906,560	-6%	0.09%
iShares MSCI South Korea Index	EWY	2,691,700	2,838,440	-5%	0.08%
MidCap SPDRs	MDY	8,043,287	6,309,430	27%	0.04%
Retail HOLDRs	RTH	6,800,100	5,619,950	21%	0.03%
iShares MSCI Brazil Index	EWZ	13,920,600	14,378,900	-3%	0.02%
iShares S&P 100 Index	OEF	2,209,772	1,549,890	43%	-0.04%
Consumer Discretionary SPDR	XLY	4,368,703	4,113,990	6%	-0.06%
iShares FTSE/Xinhua China 25 Index	FXI	5,616,469	4,583,080	23%	-0.12%
iShares Russell 1000 Value Index	IWD	1,379,750	1,608,260	-14%	-0.23%
UltraShort S&P500 ProShares	SDS	31,963,735	15,810,400	102%	-0.25%
iShares MSCI Japan Index	EWJ	16,472,300	20,913,100	-21%	-0.28%
Health Care Select Sector SPDR	XLV	2,411,015	1,974,340	22%	-0.28%
UltraShort Dow30 ProShares	DXD	6,522,990	3,546,010	84%	-0.35%
iShares Russell 2000 Value Index	IWN	3,914,217	2,594,660	51%	-0.38%
Financial Select Sector SPDR	XLF	159,636,669	65,336,100	144%	-0.50%
iShares MSCI Mexico Index	EWW	2,469,424	3,798,800	-35%	-0.78%
UltraShort QQQ ProShares	QID	46,583,818	28,341,500	64%	-0.80%
UltraShort Russell2000 ProShares	TWM	9,375,790	3,742,060	151%	-0.94%
SPDR S&P Retail	XRT	1,822,400	1,901,440	-4%	-0.98%
iShares MSCI Taiwan Index	EWT	9,027,100	8,945,110	1%	-1.39%
PowerShares WilderHill Clean Energy	PBW	1,484,570	641,255	132%	-1.54%
KBW Bank ETF	KBE	1,244,000	1,103,720	13%	-1.58%
iShares Dow Jones US Broker-Dealers	IAI	2,843,900	2,332,620	22%	-1.63%
iShares Dow Jones US Real Estate	IYR	9,156,300	6,260,860	46%	-1.98%
iShares Cohen & Steers Realty Majors	ICF	1,443,877	813,255	78%	-2.05%
United States Natural Gas	UNG	1,151,000	1,702,820	-32%	-2.52%
KBW Regional Banking ETF	KRE	2,836,100	1,658,690	71%	-3.10%

QID Trades 11-01-07

TRADE SUMMARY:

Trade	Symbol	L/S	Enter	Time	Exit	Time	Profit	Shrs	Gross Profit
1	QID	Long	$34.57	10:02	$34.88	10:11	$0.31	500	$155
2	QID	Short	$34.73	10:20	$34.52	10:46	$0.21	500	$105
3	QID	Long	$34.49	11:31	$34.62	11:50	$0.13	500	$65
4	QID	Long	$34.48	12:26	$34.54	12:37	$0.06	500	$30
5	QID	Long	$34.39	13:23	$34.52	13:40	$0.13	500	$65
6	QID	Long	$34.64	13:42	$34.79	13:59	$0.15	500	$75
7	QID	Short	$34.64	14:35	$34.56	14:55	$0.08	500	$40
8	QID	Long	$34.62	15:12	$35.01	15:31	$0.39	500	$195
9	QID	Long	$35.02	15:46	$35.19	15:54	$0.17	500	$85
									$815
Trade	Symbol	L/S	Enter	Time	Exit	Time	Profit	Shrs	Gross Profit
1	QID	Long	$34.57	10:02	$34.88	10:11	$0.31	1000	$310
2	QID	Short	$34.73	10:20	$34.52	10:46	$0.21	1000	$210
3	QID	Long	$34.49	11:31	$34.62	11:50	$0.13	1000	$130
4	QID	Long	$34.48	12:26	$34.54	12:37	$0.06	1000	$60
5	QID	Long	$34.39	13:23	$34.52	13:40	$0.13	1000	$130
6	QID	Long	$34.64	13:42	$34.79	13:59	$0.15	1000	$150
7	QID	Short	$34.64	14:35	$34.56	14:55	$0.08	1000	$80
8	QID	Long	$34.62	15:12	$35.01	15:31	$0.39	1000	$390
9	QID	Long	$35.02	15:46	$35.19	15:54	$0.17	1000	$170
									$1,630
Trade	Symbol	L/S	Enter	Time	Exit	Time	Profit	Shrs	Gross Profit
1	QID	Long	$34.57	10:02	$34.88	10:11	$0.31	1500	$465
2	QID	Short	$34.73	10:20	$34.52	10:46	$0.21	1500	$315
3	QID	Long	$34.49	11:31	$34.62	11:50	$0.13	1500	$195
4	QID	Long	$34.48	12:26	$34.54	12:37	$0.06	1500	$90
5	QID	Long	$34.39	13:23	$34.52	13:40	$0.13	1500	$195
6	QID	Long	$34.64	13:42	$34.79	13:59	$0.15	1500	$225
7	QID	Short	$34.64	14:35	$34.56	14:55	$0.08	1500	$120
8	QID	Long	$34.62	15:12	$35.01	15:31	$0.39	1500	$585
9	QID	Long	$35.02	15:46	$35.19	15:54	$0.17	1500	$255
									$2,445

What's Working in ETFs Heading into Year-End

Here's what's been working in ETFs and what I think will continue to work through the year-end both LONG and SHORT:

Big Cap Tech - Has been working for some time now...but has been resilient in the downturns. Nasdaq 100 (QQQQ) or Ultralong (QLD) work. I daytrade QID (Ultrashort) going both long and short. Be ready to short this if the momentum comes out of this index. Michael Kahn in his Wednesday's "Getting Technical" column in Barrons said "Forget the dart board and keep a very close eye on the Nasdaq-100. There is your rainmaker."

BRIC - Brazil, Russia, India, China (EWZ, RSX, INP, FXI) - These are the hot ETFs that are also highly volatile. I wouldn't hold overnight positions in any of them. But they have been working and will continue, with bumps along the road like today.

Asia Emerging Markets - Singapore, South Korea, Malaysia, Hong Kong, Taiwan (EWS, EWY, EWM, EWH, EWT). Like their BRIC brethren these country funds are high fliers and volatile. Korea's stock market was recently touted by Warren Buffett on his visit there as "attractive". He has large position in Posco the steel maker. Keep in mind Buffett is a long term buy and hold investor.

Speculation - Possibly High Risk/High Reward Plays
Oil & Gas - OIH, XLE, USO. Oil has made an amazing run up 40% since late August. Shorting will become profitable eventually...after it tops $100/barrel? DUG is the Ultrashort.
Gold and Gold Miners - Nice run since mid-August. GDX up nearly 42% and GLD up 20%. If the dollar strengthens or Fed stops cutting, these will fall.

Struggling or At Risk for more Downside
Retail - RTH
Consumer Discretionary - XLY down 12% since June...will descend further.
Small Caps - IWM down 7.7% since July
Financials - XLF down 15% since July high...more to come?
Homebuilders - XHB down 47.5% since February. Bottom yet? I don't think so.

Market Summary 11-1-07

Index	Last	Change	% Chg
DJ Industrials	13567.87	-362.14	-2.60%
Nasdaq Comp	2794.83	-64.29	-2.25%
S&P 500	1508.44	-40.94	-2.64%
DJ Wilshire 5K	15261.09	-412.27	-2.63%
Russell 2000	795.18	-32.84	-3.97%
Nasdaq 100	2197.07	-41.91	-1.87%

Comments: Yesterday the response to the Fed cut was a 1% pop across most of the averages, then today on no apparent catalyst we are down 2% plus! It felt like whoever was "pulling the levers" wanted this market to come down. An expected negative earnings report from Exxon, a downgrade of Citigroup or the realization that the Fed may not be cutting further all seem highly suspect as triggers to me. Bill Gross of PIMCO told Bloomberg TV yesterday that today's unemployment claims number was key for the "pros" and tomorrow's often revised BLS employment number is for the "amateurs"...well today's number was "in-line" today so the market sold off big? It doesn't add up to me. So what happens tomorrow? We get a decent employment number and the market rallies? Right now we are sitting on a net negative week-to-date losses on all indexes (except Nas-100 which is showing a miniscule gain of 0.10%). I have a funny feeling that a rally will ensue tomorrow to end the week on positive % gain across all the indexes...with perhaps Russell 2000 the only exception.
If you watched Fast Money on CNBC last night you would have heard Barton Biggs forecast a year-end "stampede" in stocks since his sources tell him that a record low (8%) of hedge fund managers are bullish on U.S. stocks. Doug Kass, the bear, gave his retort to the Biggs comment here. November is shaping up very interesting so far...historically the market is strongest between Nov. 1 - April 1.

Issues	NYSE	Nasdaq	Amex
Advancing	435	566	332
Declining	2,830	2,444	952
Unchanged	60	84	83
Total	3,325	3,094	1,367
New 52 WkHigh	67	82	35
New 52 Wk Low	170	235	32
Total	1,746,496,320	2,568,169,836	50,075,522
Advancing	119,919,620	383,827,601	10,825,100
Declining	1,621,957,600	2,147,483,627	38,039,522
Unchanged	4,619,100	36,858,608	1,210,900

Futures	Last	Change
Crude Oil	93.14	-1.39
Natural Gas	8.602	0.272
Gold, Dec.	791	-4.3

From Briefing.com:

Moving the Market		Sector Watch
Exxon Mobil reports worse than expected third quarter earnings A CIBC analyst asserts that Citigroup may be forced to cut its dividend or sell off assets to meet a $30 billion capital shortfall Financial sector lags, broad-based sell off Core PCE Inflation in-line; weekly initial jobless claims in-line; ISM Index disappoints		Strong: healthcare services Weak: steel; other diversified financial services; thrifts & mortgages; homebuilding; coal & consumable fuels; residential REITs; real estate management & development; diversified banks; multi-line insurance companies; general merchandise stores

	The stock market started November on a sharply lower note. On Thursday, a downgrade of Citigroup (C 38.51, -2.85), a disappointing earnings report from Exxon Mobil (XOM 88.48, -3.52), and a less than stellar ISM Index reading in the wake of Wednesday's questionable rally prompted a broad-based sell off. Yesterday, the stock market rallied following the Fed's decision to cut policy rates by 25 basis points. Briefing.com believes the market got ahead of itself, considering a 25 basis point cut was expected. Additionally, wording in the Fed's directive indicates that future rate cuts are far from certain. Citigroup was downgraded by CIBC to Sector Perform from Sector Outperform this morning. The downgrade, though, isn't the focal point for investors so much as the thesis behind the ratings change. CIBC analyst Meredith Whitney believes that Citigroup will need to raise more than $30 billion in capital over the near-term through either asset sales, a dividend cut, a capital raise, or a combination thereof. Whitney adds that Citigroup's tangible capital ratio stands at just 2.8 percent versus an average of 5.0 percent for its peers. Meanwhile, Exxon Mobil, the world's largest company by market cap, reported its biggest drop in quarterly profits in more than three years. The company reported net income of $9.41 billion or $1.70 per share - four cents below estimates. Economic data were mixed on Thursday. The national ISM survey of manufacturing conditions for October disappointedly dipped to 50.9 from 52.0 in September. This was only a bit below expectations of a 51.5 reading, but gave investors a reason to take additional profits. A reading above 50 is intended to reflect manufacturing growth. The Core PCE Deflator, income and spending for September were generally in-line with expectations. The core PCE deflator for September was up only 0.2 percent, indicating that inflation remains well contained. New claims for unemployment for the week ended October 27 fell to 327,000 from 333,000 the week before. Despite sluggish economic growth, layoffs are low. When the recession started in 2001, claims jumped to 450,000 per month. This won't alter expectations of an 80,000 to 100,000 October payroll gain to be reported tomorrow. All ten of the economic sectors spent the day in the red. Given the negative Citigroup headlines, it was not surprising that the financial sector (-4.6%) was the main laggard. The materials (-3.4%) and telecom (-2.9%) sectors also underperformed. The tech (-1.7%), healthcare (-1.7%) and consumer staples (-1.9%) sectors outperformed on a relative basis. There was risk aversion in the market today as indicated by the rally in bonds and the relative outperformance of the defensive sectors. Also, the small-cap Russell 2000 Index had a steep 4.0 percent drop. Crude oil hit an all-time high of $96.24 in electronic trade, but retreated during the day to $92.86.

ETFs Volume >1M and Gainers/Losers

Sorted by Price % Chg

Ticker	Volume	Volume 3M Avg	Volume %Chg	Price %Chg
TWM	3,092,405	3,639,380	-15%	7.54%
SDS	9,035,833	15,666,000	-42%	4.70%
DXD	2,257,820	3,550,800	-36%	3.91%
DUG	1,007,350	351,008	187%	3.74%
QID	15,862,907	28,290,100	-44%	2.76%
UNG	1,984,421	1,671,370	19%	2.70%
TLT	1,393,900	1,957,620	-29%	1.31%
SHY	1,529,139	971,492	57%	0.31%
OIH	5,450,000	9,071,140	-40%	-0.54%
GLD	6,965,700	7,117,980	-2%	-0.88%
XLK	4,526,562	3,457,160	31%	-1.09%
EWJ	14,726,800	21,288,700	-31%	-1.11%
USO	3,227,300	2,836,230	14%	-1.50%
SMH	5,064,900	10,962,500	-54%	-1.59%
XLI	2,601,464	5,472,140	-52%	-1.70%
QQQQ	180,665,984	143,584,000	26%	-1.87%
IWF	1,356,050	2,681,890	-49%	-1.91%
XLP	1,000,026	2,925,250	-66%	-1.97%
XLU	2,976,340	6,859,980	-57%	-2.05%
EFA	4,926,200	7,407,730	-33%	-2.10%
DIA	18,971,721	16,410,800	16%	-2.27%
MDY	6,115,630	6,296,930	-3%	-2.31%
SPY	321,764,902	201,943,000	59%	-2.34%
XLY	1,574,500	4,117,250	-62%	-2.46%
OEF	1,552,416	1,560,980	-1%	-2.50%
IVV	1,205,300	2,928,330	-59%	-2.53%
DVY	1,268,100	730,897	73%	-2.73%
EWZ	12,089,100	14,496,800	-17%	-2.83%
XLE	10,911,946	22,365,400	-51%	-2.93%
RTH	3,148,100	5,614,410	-44%	-2.96%
EWW	2,407,240	3,864,600	-38%	-2.96%
QLD	2,340,442	2,396,570	-2%	-3.00%
IWO	3,358,000	4,404,170	-24%	-3.30%
XLB	8,789,063	8,462,860	4%	-3.47%
GDX	1,229,791	1,967,630	-37%	-3.52%
IYR	4,222,400	6,382,050	-34%	-3.57%
EWA	3,300,625	1,862,980	77%	-3.72%
IWM	133,730,577	103,818,000	29%	-3.86%
EWS	3,478,800	4,002,780	-13%	-3.88%
IJR	1,256,000	2,176,050	-42%	-3.88%
EEM	9,434,900	16,526,800	-43%	-3.98%
PGJ	1,786,027	1,110,410	61%	-4.13%
IWN	1,609,500	2,570,720	-37%	-4.20%
EWM	1,214,500	2,737,170	-56%	-4.20%
XRT	1,691,700	1,903,410	-11%	-4.28%
EWH	6,734,322	6,513,190	3%	-4.47%
EWY	1,814,200	2,908,340	-38%	-4.57%
FXI	3,157,100	4,532,680	-30%	-4.66%
EWT	10,750,280	9,155,500	17%	-4.74%
SSO	1,361,100	1,304,000	4%	-4.78%
XHB	3,471,696	5,335,110	-35%	-4.96%
XLF	90,293,775	64,537,700	40%	-5.13%

COMMENTS:
TWM - Russell 2000 (aka Small Caps) performed horribly. If we are entering a recession and the market does shift full bore defensive, this index will continue to be creamed and there will be much money to be made shorting it via TWM.

XLF - Financials took a hammering off the Citigroup downgrade and fear that the Fed won't "have their back" after this last cut. I think the Fed will continue to cut...because ultimately the economy will either be in recession or borderline within the next 2 quarters. Massive mortgage resets are coming and if oil stays high...double whammy on the consumer who's stretched thin (but still hanging in there).

FXI, EWH, EWT, EWY - All the Asian emerging markets got whalloped good. These are the "riskiest" in terms of having rapid descents in a bad market. Surprisingly EWZ, Brazil fell far less, yet it still fell.

UNG - Natural gas is moving higher. This trend is now 7 days running. Volumes are gaining. Winter trade is on.