Westport Traders Network Meeting

November 7, 2007 - Bobby Q's -5:30PM
Since the last meeting on October 9th, 2007
1. The DJIA closed at 14165 that day and peaked at 14981 on Oct 11, 2007 and dropped to its low today at 13,375, a drop of 606 pts or 4.5%
1a. The DJIA started the year at 12463 and is now up 7.1% YTD (based on 13,340 last at 3:51PM) The DJIA rallied 18.9% from the low in March under $12,000 to the peak in October at 14198
2. Bank stocks as measured by the XLF Financial ETF have dropped sharply from 35.70 that day, down to $30.23 as I type now at 3:36PM with the DJIA -311 pts
3. The Nasdaq (QQQQ) meanwhile, was at 53.38, hit a high of 55.07 and now sits at 53.55 for a small gain, a nice outperformance by technology.
3a. The QQQQ started the year at 43.16 and is now at 53.37 for a 23% gain YTD = GROWTH MANAGERS ARE OUTPERFORMING VALUE
4. The DJTransports went from 4986 (had peaked on Oct 5 @ 5023 and peaked in July near 5500) to 4674, a drop of 6.4% since last meeting and 14.6% off the highest high.
5. The FXI (China ETF) went from 191.91 up to a peak of 218.48 before slipping back to 190.07 today for a small 1% drop, but a 13% drop off the high.
5a. China's Index was at 88 a year ago and is now at 188.6, a gain of 115% in one year!!! EYE POPPING!!!
6. The Dollar was at 85.37 a year ago and is now down to 75.50, a drop of 10 pts or 12%.
7. Consumer Confidence has dropped to a new yearly low as of October 30, down 15% from its high over 111 to 95 last
8. Google - a year ago was $472, at the start of the year was $460 and is now at 731 and hit an all-time high of 747 today.
8a. GOOG - keep in mind, has $47.51 in revenues underlying each share, but revenue is growing at 161%
9. Crude Oil - See above, December crude up to 96.31 from 79.54 a month ago. Crude is also up from a low of $50 set in January on the breakdown from $80 last summer.
10. Natural Gas - 7.64 last, down from a peak last August at $11 and within 1 range of the low of the year at 7.30. NatGas was also over $9 in early November last year.
11. Money Supply - The M3 Money Supply is up 16% Year-over-Year. Dangerous liquidity creation is a signal for higher future inflation rates.