New financial bill to protect consumers.

The financial overhaul bill that has taken final shape would give the government a larger role in guarding the wallets of consumers — many of whom, it became clear in the financial crisis, did not always understand what they were signing up for.
The creation of a central Consumer Financial Protection Bureau will act as a watchdog to safeguard consumer interests.Formerly there were too many scattered agencies and are inefficient in monitoring the tricks and traps and the fine print laid out by those finanacial instituitions.
Auto dealers would not be subject to the new bureau’s oversight, for instance. And stockbrokers and annuity peddlers are still not required to act in their customers’ best interest, at least not initially. But mortgage shoppers stand to gain under the new rules, and millions of people will now have access to a free credit score.
The bureau would be housed within the Federal Reserve, and headed by a director appointed by the president and confirmed by the Senate.
The new bureau would write and enforce rules for most banks, mortgage lenders, credit card and private student loan companies, and payday lenders. Smaller banks and credit unions, or those with less than $10 billion in assets, would have to obey the consumer bureau’s rules. But the smaller institutions’ enforcement and supervision would remain with their current regulators, said Travis Plunkett, legislative director for the Consumer Federation of America.

Tracking the Dow Friday,25/06/10.
Asian Index Futures Expiry:30/06/10.(Rollover contracts begin)
9:30am:--A shooting star opener.Disappointing data,GDP reading Q1 expanded 2.7%(expect 3.0%).Bearish continuation.
10:30am:--Bearish hammer.Personal consumption growth for the quarter was revised lower to 3.0%.
11:30am:--Double bottom,bulls finding ground. June Consumer Sentiment Survey from the University of Michigan came in at a slightly improved 76.0.
12:30noon:--Bullish shooting star at consolidation lunch hour.A positive reaction to the financial reform bill has helped financials trade with strength.
1:30pm:--A new session high being checked by a bearish shooting star.
2:30pm:--Bearish engulfing.
3:30pm:--A pullback that failed to hammer the MAV support line.Bullish spike.
4:00pm:--Last minute short-cover.
A week of downtrend with alternate dojis.The first is a graveyard doji and then two hangman dojis.
This must be a first half year window dressing,financial companies might be rebalancing stocks portfolios or derivatives positions in anticipation of this tougher rules:-"Volcker rule" -- named for former Fed chief Paul Volcker -- that would limit insured banks' speculative proprietary trading activities. The controversial proposal would also force big banks to divest their major interests in hedge funds and private equity firms, allowing them to hold no more than 3% of a fund's capital, though big banks could have as long as seven years to comply. The House-Senate bill also includes a controversial measure that requires big banks to divest certain derivatives units, such as those trading credit-default swaps, into separately capitalized affiliates.

An attractive yuan.

The Chinese Yuan is attractive for a number of reasons. First, investors and Central Banks want exposure to China’s economy; its average annual growth rate of 10% over the last 30 years is far-and-away the highest in the world. “China’s economic output will be more than $5 trillion, or around 9% of the world’s economy, according to the International Monetary Fund.” Second, the fact that the RMB is fixed is in some ways a perk: the wild fluctuations that most currencies witnessed as a result of the credit crisis has made some wonder if market-determined exchange rates aren’t overrated. Finally, the widespread consensus is that the RMB will appreciate anyway, so holding it seems like a safe bet.
The bet is that holding yuan-denominated assets is an important feature of a diversified national reserve.” In addition, China has signed Yuan-denominated swap agreements with a handful of its most important trade partners, totaling $100 Billion over the last year
On June 19, the People’s Bank of China loosen the yuan peg a day just after their week long Dragon Boat Festival.
The yuan's action seen in the first couple of days of trading. On Day One, the Yuan rose to almost the very limit of the 0.5% band allowed by the People’s Bank of China. On Day Two, however, the Yuan slipped almost .4% as Chinese State-owned banks bought up US dollars. While there is definitely room for China’s central bank to deny direct intervention, it seems quite apparent that the dollar-buying activity was simply the state-owned banks acting as proxies for the central bank. Perhaps Tuesday’s activity was simply a test to determine to what degree the currency could be influenced (note the lack of the term manipulated) in a given scenario.
Tracking the Dow.23/06/10
Asian index/options futures expires 30/06/10.Rollover contracts about to start.
9:30am:-- A shooting star opener.
10:30am:--Bearish spike down due to sharp drop in new home sales for May.
11:30am:--Technical rebound but still holding in the bearish zone.
12:30noon:--Bullish inverted hammer noted.Awaiting the latest policy statement from the Federal Open Market Committee.
1:30pm:--Holding at the MAV resistance line,bulls at work.
2:30pm:--The FOMC's statement indicated that economic recovery is proceeding and that the labor market is improving gradually.Bullish spike up to day's high.
3:30pm:--A pullback to the MAV support,but bullish inverted hammer is holding it stongly.
4:00pm:--A four-legged breakaway doji,indecision.
Wednesday's spinning doji formation has completed a morning star candlestick pair.It closes inside the previous day's bottom.
The four-legged doji closing at 4:00pm is a sign that a tremendous upward thrust of short-covering is bound to happen.
The Federal Open Market Committee (FOMC). opted to maintain the target range for the federal funds rate at 0.00% to 0.25%, as expected, and it continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

A gradual but not full currency unpegged.

Since July 2008, China had essentially tethered the yuan to the U.S. dollar to help protect the world's third-largest economy from the global financial crisis. The move Saturday by the People's Bank of China, the nation's central bank, boosted investor appetite for riskier assets on the notion a freer Chinese currency might stimulate global economic activity.
But the the central bank warned that there will be no such thing as one-off revaluation or major yuan appreciation.

The start of Dow June index futures/options contract.
Asian index futures expires 30.06.10

9:30am:--Bullish 100.0 points opening gap-up.A decision by the People's Bank of China to allow the market to have more of an influence over its currency triggered a strong rally among Asian markets as well.

10:30am:--Early session high followed by bearish dojis.

11:30am:--Opening gap being filled half body,a hangman is hoovering at this point.

12:30pm--Mid -pivot breached,futher bears.

1:30pm:--A failed technical rebound,hangman again.

2:30pm:--Bearish harami.Commodities have come under a wave of stiff selling pressure.

3:30pm:--Heading towards the low of the day,a technical rebound.

4:00pm:--Last minute bullish short-cover but still very weak.

This bearish inverted hammer is hoovering at the bull pivot support.Chances of a pullback to the MAV support is also imminent.

China's easing of currency's peg to dollar as announced over the weekend is the main catalyst news.

The aim is mainly at countering criticism of Beijing's currency policies before this weekend's summit of the Group of 20 leading economies. Beijing's trading partners have been frustrated by their perennial trade imbalances with China.

The Group of Twenty Meeting.

The Republic of Korea was honored to chair the Group of Twenty in 2010 between June 4-5, 2010 in Busan.
The G20 was established in 1999, in the wake of the 1997 Asian Financial Crisis, to bring together major advanced and emerging economies to stabilize the global financial market. Since its inception, the G20 has held annual Finance Ministers and Central Bank Governors' Meetings and discussed measures to promote the financial stability of the world and to achieve a sustainable economic growth and development.
The inaugural meeting of the G-20 took place in Berlin, on December 15-16, 1999, hosted by German and Canadian finance ministers.
Members:--Argentina :Australia: Brazil: Canada :China :France :Germany :India :Indonesia :Italy :Japan :Mexico :Russia :Saudi Arabia: South Africa: Republic of Korea: Turkey :United Kingdom :United States of America .
Wednesday Dow is 2 market days to index futures expiry.
China(dragon boat festival) and Hong Kong(tuen ng festival) market closed.
9:30am:--Bearish 40.0 points gap-down.The Producer Price Index for May fell 0.3% month-over-month.
10:30am:--A second low,inverted bulls follow.Housing starts for May dropped 10% month-over-month.
11:30am:--Retracement to fill half body opening gap with slight bearish pullback.
12:30noon:--Opening gap down being fully covered,bears on hand to check the advance.
1:30pm:--Pullback hour near to MAV support line but remain bullish.
2:30pm:--After spiking to the day's high,shooting star sighted.A disappointing outlook from Nokia (NOK 8.79, -1.03)
3:30pm:--Breached MAV support,bullish short covering as seen by the near graveyard doji within the candlestick body.
4:00pm:--An inverted bullish cover at the bull pivot resistance.
Stocks spent the session chopping along listlessly as market participants monitored the euro and digested a large batch of BP headlines and a the latest dose of economic data.
Wednesday's candlestick is a dragonfly doji with a small white bullish body.This is also an indecision doji.The disadvantage is the long lower shadow(pullback zone).The overall June is now a bullish pattern.
The only threatening news now is the dampening sentiment on news that a rescue plan was being prepared for Spain, but the EU and IMF denied the report.

The EU contagion theme play.

In Europe, finance ministers attempted to restore market confidence by agreeing how to launch a massive anti-contagion program if necessary.
But it seems like each day brings a different country to worry about. Yesterday, it was Hungary. Today, it's Bulgaria. The EU has "some concerns" about Bulgaria, EU Economic Affairs Commissioner Olli Rehn said Tuesday.
As a consequence of the Greek crisis, the euro's exchange rate at the currency markets has been falling steadily since the beginning of the year.This is threatening the monetary stability in Europe with the possibility of contagion spreading to developing countries.
The problem for Greece, Portugal, Spain, and Ireland is that they no longer have one national currency to devaluate. An unlikely alternative could be for these countries to leave the euro zone and return to their national currencies.
The contagion risk is indeed big. According to the new misery index by the financial ratings agency Moody's, Spain faces the worst crisis. The compounded dangers of the extreme high fiscal deficit and unemployment make the Spanish economy the most fragile and susceptible to a total collapse in the industrialised world.
Tuesday Dow is 8 days to index/options May expiry.
The 7th day coincide with the eve of Nikkei index futures expiry.(short-cover)

9:30am:--Mild bullish gap-up.Fed Chairman statement,moderate recovery.
10:30am:--Opening gap being filled,to find an early low.
11:30am:--Rebound to session high,indecision doji.
12:30noon:--Usual end of morning session pullback to session bull pivot.(actual should be MAV support line)
1:30pm:--Bears spike hitting the MAV support back to near day's low.The euro fell under renewed pressure. Wary of a double-dip recession.
2:30pm:--Bullish retracement again.Fed Chairman Bernanke stated in a speech regarding unemployment,consistent on what earlier spoken at the FOMC minutes.
3:30pm:--Inverted bulls.The Dow is near the double bototm as today it has dropped below previous May low.
4:00pm:--Bullish spin.

The overall June candlestick is now a bearish inverted hammer.Upon covering back to the MAV resistance line,the bulls will be in control again quite possibly before the index futures expiry day.
Stocks ended mostly higher after a late rally Tuesday as banks and materials rebounded. But tech stocks remained under pressure as investors worried about the sector's European exposure.

The rift,the warring faction.

When only a few financial executives were invited to the most recent state dinner, the chattering classes quickly assumed that the social snub was the latest sign of the war between the White House and Wall Street.
Two of Wall Street’s self-appointed spokesmen — Goldman Sachs’s Lloyd C. Blankfein and JPMorgan Chase’s Jamie Dimon — were once some of Mr. Obama’s biggest backers. No more: according to that unnamed bank chief, Mr. Blankfein and Mr. Dimon think the president is pretty close to a socialist, and the latter thinks of himself now as a “wavering Democrat.”
It’s true that Mr. Obama was initially buoyed in his presidential run by Wall Street opening up its wallet. And it is also true that his Treasury secretary, Timothy F. Geithner, is widely considered so close to Wall Street that the even the wife of the White House chief of staff Rahm Emanuel thinks that Goldman is keeping available the desk that he once supposedly had.
It is a sign of how polarized the battle between the White House and Wall Street has become that even someone like Mr. Geithner has turned a cold shoulder.
To Wall Street, the idea is that things would have been different under Robert E. Rubin or Henry M. Paulson Jr. That an adult would have stepped in and warned the president that bashing fat cat bankers may feel good in the short term, but is counter-productive in the long run.
The ex-Clinton official and Evercore Partners chairman, Roger C. Altman, said “Wall Street is focused on the next five minutes or the last five minutes.” And an unnamed executive told New York that bankers are unwilling or unable to admit or believe that they had a role in creating the crisis.

The Dow on Friday is 10 market days to index/options expiry for May contracts.
Nikkei futures contracts expiry:11/06/10.

9:30am:-- An opening 130.0 points gap down.Greece contagion spread to Hungary.

10:30am:--Bearish hangman near session low,no sign of retracement to fillthe opening gap.

11:30am:--A new session low. A disappointing monthly jobs number.

12:30noon:--No sign of retracement for the morning session.Now hoovering near another low.

1:30pm:--Lower again with bearish spin.A stiff bout of selling pressure.

2:30pm:--Bearish hammer at the low.Industrial stocks have taken a beat down from sellers.

3:30pm:--More pronounced hangman.Such sour sentiment has triggered a spike in volatility.

4:00pm:--A morning star at the close.A mild technical rebound to follow but the bears are still in control.

The overall weekly candlestick is bearish.We are still in a Sell in May futures contracts.

Personal bankruptcies climbed near a five-year high in May while corporate defaults continued to fall, showing a growing divide between the fortunes of Main Street and Wall Street.

Unemployment and bankruptcy filings are usually lagging indicators, meaning that their recovery usually comes about six to 12 months after the turn in the general economy.

Dow slump on schedule.

The Dow,Thursday 03/06/10 is 11 days to May contract index/futures expiry.

Nikkei index futures expire on 11/06/10.
A negative moving average..

The spinning top.