Prices inflation.

According to some European and American analysts, nations of the world have been regrouped into a new "three-world fixture": developed countries have turned into financial powers while developing nations have become manufacturing powers and exporting powers of energy and materials resources.
Before the prices of production materials shot sky high, the opening up of the global market brought by the liberalization of international trade created an opportunity for manufacturing powers to develop further and they grew the fastest. That said, as the prices of production materials soared, the financial powers and energy- and materials-exporting powers seemed to be doing even better than manufacturing powers.
Financial powers and especially the US have a kind of currency hegemony. The US dollar is the leading currency in the world and the pricing currency for many bulk commodities such as oil. When the US dollar depreciated, the prices of such commodities went up. There is a mechanical co-relation between them.
The US is already the largest debtor nation in the world and needs to import a lot of foreign capital to keep its economy running. The depreciation of the US dollar has caused the prices of bulk commodities to rise and a tide of worldwide inflation, making the US a victim of the problem, too, though it has also lightened the debt burden on America's back.
First of all, the cost of imported energy resources and production materials keep rising while the export market contracts, prices cannot go up and profits fall, pushing some medium- and small-sized enterprises to the brink of reorientation or shutdown. Second, Transportation cost goes up as oil price rises, making it difficult for manufacturing powers far away from export markets to stay afloat as some importers choose to buy from closer manufacturers. Third, manufacturing powers are being targeted by criticism from developed countries that their growing consumption of energy resources and production materials have driven prices up worldwide, while government subsidies have kept their own energy prices relatively low.
In fact, the reason why manufacturing powers subsidize their enterprises on energy price is that energy price is a complex political and social issue. If energy prices are allowed to soar freely, ordinary manufacturers will not be able to afford it and the economy will go into recession as a result.
Tracking the Dow on Friday,29/08/08.

9:30am:--A 25.00 points gap-down.
Personal income decreased 0.7% during July, but personal spending was up 0.2% during the same month. Consumption accounts for more than two-thirds of economic activity, making the figure key in assessing growth.
10:30am:--Bearish Harami.
Crude makes session highs minutes ahead of the open of pit trade at $117.88; now up $2.23 to $117.82 (COMDX)
11:30am:--Bearish Spin.
No sign of technical rebound to fill the gap.The main candlestick at this moment is a long black stick with a shaven top.
12:30pm;--Bullish engulfing.
Open a long-buy position and look to close at the morning session MAV or whichever.
1:30pm:--The shooting stars.
It's near MAV.Sell and close position.Crude continues its pullback and is now off over $2 from its highs; currently up 77 cents to $113.36
2:30pm:--Fake bulls below MAV with bearish spin.
Government-chartered Fannie Mae and Freddie Mac fell anew Friday after big gains earlier in the week. Fannie Mae fell $1.11, or 14 percent, to $6.84, while Freddie Mac fell 77 cents, or 15 percent, to $4.51.
3:30pm:--Bearish Engulfing.
The market has no hope of any technical rebound as we are at injury time.
4:00pm:--Graveyard doji.

Wall Street's retreat following the downbeat news about consumers also comes after several days of sizable gains in stocks and on the final session before the long Labor Day weekend. Pre-holiday trading is generally light and some pullback was to be expected.
Friday's candlestick seems to have rested on the month's MAV but still in the bull county.
Can this be a fake bear?
Although many investors are fixated on consumers, Wall Street showed little reaction to the Reuters/University of Michigan's index of consumer sentiment, which rose to its highest level in five months. Economists often reason that consumers who are upbeat about their prospects are more likely to spend.
As Monday is a Labour Day holiday,it will have to rely on Asian market leads overnight.

Beijing's capital gains.

Forget the medal tally. The real winner of this year's Games is Beijing.
Not only has Olympics given the capital a mega facelift that must be the envy of cities the world over, the huge infrastructural boost it has got provides other Chinese cities a perfect model to emulate.
The 3.2 billion yuan Bird's Nest is only the most visible face of the changes Beijing has undergone in the past years. Many of the other projects are no less stunning. These include the 6.2 billion yuan express rail linking downtown Beijing and the Capital International Airport; the 27 billion yuan new airport terminal (T3); the 67.7 billion yuan relocation program for steelmaker Shougang Group; the 11.99 billion yuan No 5 subway line and the 15.99 billion yuan No 10 subway line; and the 14.3 billion yuan Beijing-Tianjin express rail.
Some critics say the Beijing Games may have been way too extravagant, compared with Athens' $15 billion infrastructure program in 2004 and Sydney's $5 billion in 2000. But what is overlooked in such criticism is that most of the money went into infrastructure rather than venues per se, ensuring more long-term bang for the billions spent.
Statistics from Beijing Organizing Committee for the Olympic Games (BOCOG) show only 13 billion yuan was spent on venues - 31 for contests and 45 for training. On the other hand, over 180 billion yuan was injected into infrastructure. So far, eight new railway lines, covering 200 km with a daily capacity of around 4 million people, are under operation alongside 60 km of a rapid bus transport system. These combined with new terminal, upgraded expressways and public transportation system, have changed the face of Beijing forever.
As a result of a 15 billion yuan investment, over 90 percent of the city's wastewater is now treated; over 50 per cent of the city is forested; and natural gas accounts for more than 60 per cent of energy generation - up from 45 per cent in 2000.
Some 50,000 old taxis and 10,000 buses have been replaced with new ones, and 4,000 of the buses are powered by natural gas - now the largest fleet of its kind in the world. Some 200 polluting units have been closed, moved or have switched to cleaner modes of production over the past seven years. All these cost about 45 billion yuan.
Informatization upgrading, involving fixed and wireless communications, broadband, long-distance communications, e-government and e-commerce systems cost another 30 billion yuan.
"Beijing Olympics has tremendously improved the city's infrastructure, increasing the capital city's 'value'," says Liu Jinhe, senior researcher of Samsung Economy Research Institute.
Andreas Flaig, managing director of property management and consultancy Jones Lang LaSalle Hotels China, has been in Beijing for three years now. "I am very happy with the way the city has changed. I think it's phenomenal and extraordinary for the government to have invested so much in reshaping the city," he says.
Model for change
Beijing's radical makeover has come as a great example for other Chinese cities trying to redefine themselves to increase the general standard of living, attract investors and set themselves apart. Chongqing is to pool 3.7 billion yuan to set up a railway station equivalent to the Southern Beijing Railway Station, the largest one in Asia. Some 15 cities, including Shanghai, Guangzhou, Nanjing and Wuhan, are busy building or expanding their metro and light track systems. According to the Ministry of Construction, urban rail reached 602 km on the Chinese mainland by the end of last year, while a number of projects running up to 2015 will add another 1,453 km.
Brian Dennehy, partner of Dennehy Weller & Co, a UK-based independent financial adviser, says China's huge population and area means there is more scope for improvement of infrastructure and new industries. "With millions expected to move from rural to urban areas, the Chinese will need to build the equivalent of two New Yorks every year for the next 15 years," he says.
A city's renovation and cleanup are a lengthy process, but events such as the Olympics inject such endeavors with a new vigor. Beijing has used the opportunity afforded by the Games to speed up its metro and light track construction. While the 200 km urban rail system was finished by July, the city's original plan in the late 1990s was to complete 150 km by 2010.
"That's one of the reasons why cities compete to host international events. They can act as an engine for rapid improvement," says Flaig.
Shougang's relocation demonstrates how urban green projects can impact other areas. The 67.7 billion yuan project removed the old facilities, paid for employee relocation as well as environmentally friendly facilities in Caofeidian, an islet which has been turned into a booming economic development zone.
Numerous such projects are afoot in China as the central government has issued related policies on relocation of heavily polluting enterprises, opening up numerous opportunities for investors from home and abroad.
Tracking the Dow on Wednesday,27/08/08.
9:30am:-Mild open.
Crude oil is up 1.1% to $117.50 per barrel on continued threats of a potential hurricane disrupting production in the Gulf of Mexico.
10:30am:--Spike up bulls.
Just reported, July durable goods orders rose 1.3% month-over-month, compared to the expected unchanged reading.
11:30am:--Pullback for morning session.
Atlanta Fed President Lockhart said that both headline and core inflation are likely to ease over the rest of 2008 and into 2009. He believes CPI will peak nearly the July year-over-year level of 5.6%.
12:30pm:--Ascending soldiers.
The Department of Energy just reported that crude oil inventory levels for the week ended Aug. 22 fell 177,000 barrels.
1:30pm:--Bears profit taking.
Stocks continue to sport solid gains modestly below session highs.
2:30pm:--Bulls holding tight.
The main candlestick is a long bullish bar.No sign of pilling back to MAV.
3:30pm:--MAV touched.
Market makers pull index back to MAV near closing.
An encouraging reading related to the manufacturing sector helped offset disappointment over the third straight gain in oil prices.
4:00pm:--Evening star.
Mild profit take to pursue.
Tomorrow brings the preliminary second quarter GDP reading and new jobless claims for the week ended Aug. 23. GDP is expected to be revised upward to 2.7% from 1.9%, while jobless claims are forecast to slip slightly to 425,000.
Wednesday's index is still in the bear's county and needs to breakout the MAV in order to remain bullish.Meantime it's a sad index.

Asian slowdown.

At long last, the world's most vibrant economic region has met gravity- whether it's the slowdown in Singapore's non-oil exports, the bleak economic assessment of the Bank of Japan, Vietnam's continued slide into a meltdown and the continued inflation shocks from around the region.
Australia has built an impressive war chest of domestic consumption that will push its economy forward, even as the commodity bubble implodes. Unfortunately, the country's financial sector is in bad shape as the recent travails of banks such as National Australia Bank and other financial companies like Babcock & Brown show.
The economies of Southeast Asia will face slowing exports to Japan and China as a result of the reduction in end-consumer demand in the US and Europe; in turn this means a substantial wipeout of intra-Asian trade that sustains their overall production. To make matters worse, policy mistakes of countries like Vietnam, where the central bank has effectively scared away portfolio investors even as the rest of the government has scared away potential investors in manufacturing and services, reduce any chances of a quick turnaround in the situation for Southeast Asia.
Worst affected in this slowdown across the minnows will be foreign investors in assets such as property who will be hurt by rising interest rates even as both asset values and currency rates decline, thus exposing them to multiple sources of losses. As go the property investors, so will others.
Tracking the Dow on Monday,25/08/08

9:30am:-Hefty 100.00 points Gap Dow.
A bearish outlook prevails.Wells Fargo (WFC) is "highly unlikely" to pursue the acquisition of a larger rivel, according to Wells Fargo CEO John Stumpf, the Financial Times reports.
10:30am:-Hangman
South Korean regulators told the Korea Development Bank to take a cautious approach before making an acquisition of an overseas bank after the company expressed interest in Lehman Brothers (LEH 13.71, -0.65), according to the Financial Times.
11:30am:--Graveyard dojis.
Existing home sales are down 13.2% year-over-year, and have an inventory supply of 11.2 months, compared to the 2007 average inventory supply of 8.9 months.
12:30pm--Bearish spike,dojis.
AIG (AIG 18.92, -0.95) is a laggard after Fitch Ratings put the insurance giant's credit ratings on negative watch.
1:30pm:--Hangman
Buyers are sitting on the sidelines as the indices continue to retreat in broad-based fashion. All ten sectors are posting a loss, and eight are down more than 1%.
2:30pm:--Hangman again.
Financials (-2.5%) are leading the way lower, with 86 of its 89 components in negative territory.
3:30pm:--Graveyard dojis.
Crude prices settled with a gain of $0.56 to $115.15 per barrel after a choppy session.
4:00pm:-Bearish engulfing.
Lehman Brothers (LEH 13.54, -0.87) struggled after South Korean regulators told the Korea Development Bank to take a cautious approach before making an acquisition of an overseas bank, according to the Financial Times.

Stocks sank in light trading Monday as worries about American International Group Inc. touched off broader concerns that the deterioration of the credit markets will bring more big losses for financial companies.
Monday's candlestick is sniffing at the bear's neck line and is in danger of sinking.
Tuesday's ecnomic news:-New Home Sales,consumer confidence & UBS store sales report if have not much impact might rescue the Dow.

Economic Toll.

Federal Reserve Chairman Ben Bernanke said Friday the financial crisis that has pounded the country -- coupled with higher inflation -- is taking a toll on the economy and poses a major challenge to Fed policymakers as they try to restore stability.
The Fed's handling of the credit, financial and housing debacles -- which have badly burned the economy -- is likely to spur debate at a high-profile conference beginning Thursday, August 21, 2008, in Jackson Hole, Wyoming.

Trackin the Dow on Friday,22/08/08.

9:30am:--A 60.0 points bullish gap-up.
Korea Development Bank stated that Lehman Brothers (LEH) is an option for acquisition, according to Reuters.
10:30am:--Shooting Stars.
Warren Buffett stated in a CNBC interview that government supported mortgage lenders Fannie Mae (FNM) and Freddie Mac (FRE) are looking for private investment, but the scale needed is unlikely to come from the private sector.
11:30am:--Graveyard Dojis.
Crude is currently trading below $119 per barrel.It's risky to open ay position despite the shooting star here.The main candlestick has a near shaven bottom depiction that it's a bullish day.
12:30pm:--Inverted hammer.
The morning session pullback failed to touch the MAV so technically might have a mild rebound.
1:30pm:--Bearish dark cloud cover near day's high .
Fed Chairman Bernanke stated the declines in commodity prices and the stability of the dollar are encouraging as their trends are likely to slow inflation.
2:30pm:--Bearish hangman.
The uncertainty of government sponsored enterprises' future has cast a shadow over market sentiment in recent weeks, given the implications of a possible government-led bailout.Moody's Investors Service downgraded the ratings on preferred shares of Fannie Mae (FNM 4.52, -0.33) and Freddie Mac (FRE 2.70, -0.46) to Baa3 from A1.
3:30pm:--Evening stars at near day's high.
Stocks have stalled during their recent ascent and are now trading sideways. The session's overall tone, nonetheless, remains upbeat.
4:00pm:--Bullish hammer with shaven top.
Barring any bad news,the bulls rampage continues.

Stocks finished the week on a strong note, but the lack of volume suggested there was little conviction behind the buying. Moreover, despite the strong finish, the major indices concluded the week with a loss.
Last Monday candlestick has a 85% coverage.A few more inches to go before the real bulls go on a rampage again.

Volkswagen

After the establishment of Shanghai Volkswagen in China in 1984, Volkswagen Group China triggered the reform of China's automotive industry.
Volkswagen's Green Future Environmental Education Initiative, started in April 2007 in China, is a three-year program on environmental education launched by Volkswagen Group China. The program is expected to encourage students to get involved in learning and discussing environmental issues and raise their awareness and enthusiasm to take part in environmental-protection actions.
An event named "Volkswagen Green Future Olympic Host City" marked the successful start of the second year of implementation for this three-year campaign. From March to May, the Olympic City Tour brought the latest knowledge of environmental protection and the Olympics to the children in the host cities of the Games: Beijing, Tianjin, Qinhuangdao, Shenyang, Shanghai, Qingdao and Hong Kong.
Volkswagen's efforts in environmental protection have been widely recognized by environmental organizations, experts and the public.
Tracking The Dow on Wednesday,20/08/08





9:30am:--Gap up 40.0 points.
The dollar rose towards the previous day's seven-month high against a basket of six major currencies, helped by expectations that growth outside the United States is deteriorating fast.
Gap being filled and early low found.
10:30am:--Bearish Dojis.
Expectations that an imminent government bailout of Fannie and Freddie would wipe out shareholders drove the stocks to almost two-decade lows.
11:30am:--Bearish Engulfing at high.
Oil gained for a second straight day, settling up 45 cents at $114.98 as concerns swirled about Russia's possible reaction to a U.S.-Poland missile shield. Also, Goldman Sachs reiterated its year-end forecast of $149 a barrel for U.S. crude.
12:30pm:--Bears at MAV.
Shares of Fannie Mae, the biggest U.S. provider of housing finance, plunged 26.8 percent to $4.40, while Freddie shares fell 22.1 percent to $3.25.
1:30pm:--Hangman at MAV.
A 14 percent jump in quarterly profit for computer maker Hewlett-Packard (NYSE:HPQ - News) also helped boost the S&P 500 and raised hopes that overseas demand would continue to support technology spending. HP shares rose more than 5 percent.
2:30pm--Bullish Harami below MAV
It's a buy.
3:30pm:--Dragonfly Doji.
The retracement.
4:00pm:--It's the graveyard doji.
Close position-sell.

The double top formed has dragged the indicies for the week.
It's spinning at the bear pivot and risks bringing it down further.
Bad news:-
Lehman Brothers is under particular scrutiny as well, after the Financial Times reported late Wednesday the investment bank tried to sell up to half of its shares to South Korean or Chinese investors earlier this month, but failed.

Carrefour in China.

Its adopted Chinese name -- Jia Le Fu (happy and lucky family in English) - has become practically synonymous with "supermarket" on the mainland.
Carrefour has opened 116 more stores on the mainland with a total floor area of nearly 1 million sq m and is employing almost 50,000 people since its open in 1995.
The company's sales in China amounted to 30 billion yuan in 2007, accounting for about 5 percent of total group revenue.
Because of its growth potential, the Chinese market is enjoying almost as much attention from Carrefour's management as the group's home market in France.
Carrefour established a Carrefour China Institute (CCI) in Shanghai in 2000 to train Chinese managers. Since then, the school has trained about 15,000 managers who are playing an important role in the fast expansion of Carrefour on the mainland. Last year, 40,000 employees attended various training programs on an average of 23 training hours for each person per year.
At the beginning, Carrefour opened in three very different cities in China, Beijing, Shanghai and Shenzhen. The three cities are very far away from each other and had different characteristics. Carrefour had to adapt its stores to the specific needs of the consumers in each city.
Tracking the Dow on Friday,15/08/08(INDEX FUTURES/OPTIONS EXPIRY)

9:30am--Gap Up 80.00 points.
A surprisingly large jump in consumer-level inflation in July and a small decline in first-time unemployment filings.
10:30am--Upper shadow light up.
A early low eatablished. The dollar index was higher. Gold futures and oil futures were lower.
BUY.
10:30am--Spinning Top.
A bearish engulfing candle pair.SELL-Short,close earlier & open another.
11:30am--Bearish Hammer.
Trading was volatile before options expiry on Friday.
12:30pm--Bearish Engulfing.
Hoovering at MAV.
1:30pm--Near Morning Low.
Buyback and close position.Saw a bullish harami.Candlestick formation now is an inverted hammer.
2:30pm--Bullish spinning dojis.
The S&P Homebuilding index rose 4.48% after a report from the National Association of Realtors that said existing-home sales rose from the first quarter in 13 states, according to the NAR's latest survey.

3:30pm--Shooting star.
Indicies still holding strong at MAV.
4:00pm--Bullish hammers seen.
The market was bolstered by bargain hunting and a pullback in oil prices. Financial and auto stocks were stronger overall for the day.

The bullish zone is yet to be penetrated.The spinning Friday's doji should not blow off the upper shadow of Thurday's candlestick otherwise we'll be at square one again.
Oil fell to its lowest price in three months Friday, briefly touching the $111 level after the dollar muscled higher and OPEC predicted the world's thirst for fuel next year will fall to its lowest point since 2002.

Credit bubble.

Large institutions that are overexposed to U.S. subprime loans are back to haunt the market.Wall Street is also celebrating the Hungry Ghost Festival - A traditional festival from China
The lingering effects of the crisis mean banks and brokerages need ``massive'' consolidation because of the glut of lending worldwide.
In fact August marks the 1st Anniversary of the subprime rout.The financial market is again held at ransom by these market hawks.They are the tactician versus the technicians.
Hold on tight to the seat belt as they bring another roller-coaster ride the financial market worldwide.
Tracking the Dow on 12/08/08.Tuesday.
9:30am--80.0 points gap down.BEAR
A shaven top.Another wave of writedowns and other troubling news from the financial sector,a ground breaking ceremony.
10:30am--3 Black crows withe bottom spin.
First session low,buy for technical rebound to hour's MAV.
11:30am--Shooting star.
Take profit,sell at near MAV.The candlestick is still bearish shape like hangman.
12:30pm--Bearish graveyard doji.
News of losses at UBS (UBS), JPMorgan Chase (JPM) and Wachovia (WB), as well as a downgrade of Goldman Sachs Group (GS), set the stage for some profit taking after the market's recent rally.
1:30pm--Bearish hammer.
A glimmer of positive news in the U.S. trade deficit, which narrowed unexpectedly to $56.8 billion in June, from $59.2 billion in May. The new figures suggest the U.S. economy may be growing more quickly than previously believed.
2:30pm--Shooting star at day's bearish candlestick.
UBS reported $5.1 billion in losses and writedowns from the second quarter. The Swiss bank had already reported $37.4 billion in writedowns in previous quarters, many from assets backed by U.S. residential mortgages.
3:30pm--Day's low set.
Safe to make a long position.Goldman Sachs was downgraded by Deutsche Bank analysts from buy to hold. Oppenheimer analyst Meredith Whitney cut her third-quarter earnings estimate for the investment bank to $2.15 from $3.54 and trimmed her fiscal 2008 forecast to $14.32 from $15.75 a share, citing customer volumes, overall weak global equity markets and weak advisory and underwriting revenues.
4:00pm--Hangman + bullish spin.
Sell,short to close position.
Tuesday's bear is trying to give a full tight slap to Friday's bull.The shaven top bearish candle signifies bears not giving up its onslaught.

Prosperity Number 8.

08.08.08 may be more universally known as the start date for the Beijing Olympics, but in Stockholm a different celebration is taking place.

08 refers to the Swedish capital's telephone area code and the city kicked off its "Go08 Festival" with a giant water fight.The 08 symbol has been used to describe Stockholm ever since it was chosen as the city's telephone area code in the 1960s. In Sweden the capital's residents are sometimes referred to as "08-ers" ("noll-aattors" in Swedish).
75,000 people are expected to attend the city's festival, that will include concerts, dance shows, a karaoke competition and a fireworks display.
Between 7,000 and 10,000 people, armed with waterpistols, took part in a water fight Friday afternoon between a team from the north of the city and the south.
A group of teenagers first proposed the idea of a water fight on Facebook, the online social networking site.

Tracking the Dow on Friday,08/08/08

9:30am--Small 10.0 points gap-down.

Second quarter nonfarm productivity increased 2.2%, though economists were looking for 2.5% after the first quarter's 2.6% increase.

10:30am--Ascending soldiers.

Candlestick pattern now is long bullish bar.It's abuy.

11:30am--Weak bears.

Second quarter labor cost data also bode well for lowering inflation expectations. Announced ahead of the opening bell, labor unit costs were up 1.3% for the second quarter. The increase reflects a decelerating rate of increase from the first quarter's 2.5% increase and the preceding fourth quarter's 4.5% increase.A shaven top candlestick.Hangon to position.

12:30pm--Toppish spin.

Oil futures were down as much as 3.6% to trade below $116 per barrel. Helping drive the decline in oil prices is a stronger dollar.
European Central Bank head, Jean-Claude Trichet, recently cautioned the economy would weaken in the Eurozone. Tighter credit paired with higher fuel and material costs are dimming growth prospects overseas and making it less likely the ECB will hike rates in the near future. That notion is spurring interest in the dollar as the euro loses luster. The euro is down 1.8% against the dollar.

1:30pm--Bulls spike.

The sizable slide in oil prices can be credited for the session's upbeat tone. Oil is currently down more than 3% this session, trading near $116 per barrel.

2:30pm--Bulls command.

A shaven top candle extending to another high.

3:30pm--Bulls rally.

Heading into the final stretch the major indices continue sporting attractive gains.

4:00pm--A harami at close.

Gear up for futher bull action.

Thursday bears did not fully engulf Tuesday's bull.The bears have lost the battle.The week ended with a bullish harami-a pregnant mom expecting a new born baby,a star is born on this auspiciuos No 8,chinese is "Pa" cantonese is "Fatt"

Helping trim oil prices was strength in the U.S. dollar. The greenback found favor after cautions that the European economy would weaken, most likely an adverse effect of tighter credit and higher input costs. The dollar index advanced 1.8%.
Fixed income investors bid up the price of bonds as a stronger dollar, lower oil prices, and encouraging unit labor cost data helped ease inflationary expectations. According to government data, unit labor costs were up just 1.3% during the second quarter, which is down from the pace in the previous two quarters.

Olympic hangover.

As China gears up for the upcoming Beijing Olympics, economists are weighing the economic consequences of the Games, with some of them worried about an "Olympic hangover".
There are basically three opinions regarding the economic impact of the Beijing Olympics. One is that unlike previous profit-making Games, the huge investment in the Beijing Games will incur losses.
The second is that a substantial economic downturn will occur following the Olympics.
The last view is that the favorable social and economic impact of Olympics would be enormous and long lasting.
Seen from experiences of the host nations of the past eight Olympic Games, six of them recorded accelerated growth in the year of the Games.
Moreover, given the different development phase of the host nations, the impact of the Olympics is different.
For example, the economic scale of Greece, host of the 2004 Athens Olympics, was $185 billion while that of Australia, host of the 2000 Sydney Olympics, was $390 billion. China's economy is about 16 times that of Greece and eight times that of Australia.
After the Olympic Games, some Olympic-related industries may hit the skids, but the Olympic effect would benefit some other sectors, such as information, sports, travel, culture and exhibition, which are combined to serve as the new growth points of the national economy.
Experts estimate that the Games would produce a total of $71.7 billion in revenues during the 2003-10 period.
The Games will leave some unique Olympic heritage for the host city, which will help it promote local travel, exhibition and sports industries. The boost for the city's exports and internal trade, for example, may surface within three years after the Games.
Beijing could also take advantage of the Games to continue its urban development and promote higher value added industries, such as hi-tech and services.
The Olympic Games provides an opportunity for China to show the world what it is like and the enhanced understanding will promote China's foreign trade and cooperation.
The hosting of the Olympic Games would mainly benefit eight industries, including travel, commerce, real estate, construction, transport, sports, information and telecommunications, helping to increase investment in those sectors.
The Games, therefore, would definitely push economic growth.
Experts estimate that the Games will bring an extra 105.5 billion yuan to Beijing's GDP during the 2004-08 period.
Nationwide, the overall economic benefit, including both direct and indirect benefits, of the Olympics would be about 600 billion yuan.
Tracking the Dow on Wednesday,06/08/08


9:30am--50.0 points gap down.
A $821 million loss for mortgage financier Freddie Mac (FRE) again raised worries about the financial sector.
10:30am--A bullish harami.
Session low,sign of recovery to fill the gap.Buy.
11:30am--Ascending soldiers.
The bearish gap being filled.Index hoovering at the open.
12:30pm--Hangman.
Close position,buyback.The main candlestick pattern looks like a hammer.
1:30pm--Hangman again.
Oil prices on Wednesday continued to fall after the Energy Dept. reported crude oil inventories
increased by 1.7 million barrels in the week ended Aug. 1 from the previous week.
2:30pm--Graveyard doji.
Cisco Systems (CSCO) reported earnings of 40 cents per share, beating Wall Street expectations by 1 cent.
3:30pm--Bears control.
Whole Foods Market (WFMI) suspended its dividend after posting a drop in earnings. The grocery chain saw earnings of 24 cents per share, down from 35 cents. Same-store sales rose 2.6% and total sales were 22% higher, but Whole Foods warned of lower profits for the rest of the year, and reduced the number of stores it expects to open.
4:00pm--Bearish engulfing.
looks like profit takers still at work.
The hangman still at work on Wednesday.They might be trying to move back to the support & resistance line.(MAV)

Banks Insolvency

More banks and financial institutions are likely to face insolvency and need bailouts before the global financial crisis is over, according to former US Federal Reserve chairman Alan Greenspan.
Greenspan called the current crisis -- which started a year ago -- a once or twice in a century event and said insolvency would only end once US house prices stabilized, underpinning mortgage-backed securities.
Until then, the threat of collapse among banks and other global financial institutions would persist.
"Fears of insolvency have not, as yet, been fully set aside," Greenspan wrote in an article published online on Monday. "There may be numbers of banks and other financial institutions that, at the edge of defaulting, will end up being bailed out by governments."
By extension, continued falls in global equity prices would have a debilitating impact, he said, despite the offset of rising global savings rates.
"Lower global stock prices could impede the recapitalization of banks and other financial institutions. Debt issuance would also be suppressed as it leverages off the level of equity," he wrote.
"The price of equities worldwide will determine whether the international financial system can maintain a modicum of stability as it eases out of its credit crunch, or falls back into another period of angst and turmoil."
Greenspan said increased market regulation was not the answer, and could do more harm than good.
"The cause of our economic despair, however, is human nature's propensity to sway from fear to euphoria and back, a condition that no economic paradigm has proved capable of suppressing without severe hardship," he said.
"Regulation, the alleged effective solution to today's crisis, has never been able to eliminate history's crises."
Instead of believing that more rigidity in the system would prevent breakdown, he said continued flexibility was required.
"We may not easily confront or accept the price dynamics of home and equity prices, but we can fend off cries of political despair which counsel the containment of competitive markets.
"It is essential that we do so. The remarkably strong performance of the world economy since the near-universal adoption of market capitalism is testament to the benefits of increasing economic flexibility."

Tracking the Dow on Monday,4/08/08


9:30am--Gap Down 20.0 points.
A bearish Hammer formed.the release of a mixed June personal income and spending report. Month-over-month, personal income rose 0.1% (-0.2% consensus), personal spending increased 0.6% (+0.4% consensus) and core PCE rose 0.3% -- the Fed's preferred inflation measure -- (+0.2% consensus).
10:30am--Bearish Spinning Top
The financial sector (-1.8%) comes under selling pressure. The only two sectors posting a gain are defensive-oriented healthcare (+0.6%) and consumer staples (+0.4%).
11:30am--Retracement to day's opening price.
Crude prices plunged 4.5% to $119.50 per barrel after being up as much as 1.0%. Crude is currently trading with a loss of 3.4% at $120.88 per barrel.
12:30pm--Bearish Hammer.
Commodities as a whole are under selling pressure, as all 19 components within the CRB Index (-3.1%) are posting a loss.
1:30pm--Graveyard Dojis.
The stock market continues to post a loss as the recovery effort fades. The enthusiam over the drop in crude (-3.5%) and commodity (-3.3%) prices is partially offset by steep drops in the energy (-4.1%) and materials (-3.8%) sectors

2:30pm--Spike up & a bullish hammer.
The stock market goes on the retreat as energy (-5.3%) and material (-4.7%) stocks continue to plummet. The decline in both sectors is the largest since March 19, when oil plunged 4.5% and gold tumbled 6.5%.
3:30pm--Bearish Hammers.
The latest factory orders report showed that the manufacturing sector is much healthier than is widely recognized. June total factory orders were up 1.7%, which is much stronger than the expected gain of 0.7%. Excluding transportation, orders rose 2.3%.
4:00pm--Bearish Hammer.

The stock market posted a steep decline on Monday as plunging crude oil and commodity prices caused a steep sell off in energy and material names, but did not translate into large gains in the broader market. Selling interest was also fueled by continued concerns regarding financials and a June personal income and spending report that showed higher-than-expected inflation.
The main trading catalyst tomorrow will be the FOMC rate decision at 2:15 ET. The fed funds rate is expected to be left unchanged at 2.00%.
The chart pattern shows Tuesday,July 29 white bar has not been fully covered yet.

Aromatic therapy for stressed traders.

Wall Street is reeling from losses, and bankers are fearful of losing bonuses at best and jobs at worst. But while New York braces for the economic fallout, one group is benefiting -- psychotherapists.
Bankers suffering from anxiety or depression and looking for pills or deep therapy are making beelines for the couch. And for some it has gotten so bad they want to quit the money game forever.
"Traders are more stressed, more uncomfortable, more fearful about how the year's going to turn out, and less confident than they have been in years," said Ari Kiev, psychiatrist and founder of the Social Psychiatry Research Institute.
The year-long credit crisis has been traumatic for some bankers who have had their bank accounts, their career prospects and their self-esteem damaged.
Declining home prices in some parts of the New York metropolitan area and sliding stock prices, particularly in the banks themselves, have hurt bankers' wealth.
There was even a report they are unwelcome to apply to buy or rent apartments in some New York City buildings because of fears they will be bad credit risks.
And the therapists said many bankers and hedge fund managers that have lost substantial personal wealth are coming to them because they are also now facing divorce.
What depresses more than loss of money is loss of prestige, loss of self-esteem, embarrassment and comparative failing in contrast with their peers.
Tracking the Dow on Friday,1/08/08.

9:30am--GAP UP 50 points.
General Motors (GM) reported a hefty adjusted loss of $11.21 per share after revenues slipped nearly 18% from the prior year to $38.16 billion.

But a smaller-than-expected decline in July nonfarm payrolls reversed the pessimistic tone.
10:30am--Bullish Harami.
The opening bell gap up has been filled completely and extended to find an early low.The setting for the day's range has been made so took a buy position here .
11:30am--Hammer at MAV.
Close out position-sell.Oil prices are now up almost 1.4% to $125.80 per barrel.
12:30pm--Graveyard dojis.
In other economic news, the ISM Manufacturing Index came in at 50.0 for July. Economists expected a reading of 49.0. The reading is a reasonably good sign that manufacturing conditions have improved since the first quarter.
1:30pm--Bullish engulfing.
The indicies at hoovering at the MAV.The overall candlestick is a small bearish body spinning doji with a slightly longer lower shadow.
2:30pm--The bears refuse to budge.
Every component of the Dow Jones Utility Average is now in the red. Weakness in materials is focused around Monsanto (MON 115.39, -3.72) and Freeport-McMoRan (FCX 92.25, -4.50).
3:30pm--The MAV breakout.
The stock market is attempting to recover going into the final half hour of trade, led by buying interest in financials (+0.9%).
4:00pm--Pullback bears command.
A lower start for ist day of August.A rebound in the making.

Friday's candlestick has fall short of penetrating the July 29 half body of the bull.
August MAV 11,346.39 is way above July's MAV so the bulls are still in control.