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IDS World Markets Wed 28th October 09


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Radio Free Wall Street Free Edition – 10/27/09

Lee Adler discusses what’s wrong and what’s right with the Conference Board Consumer Confidence Index, aka the Concon Con, and the Case Shiller Housing Index, otherwise know as the Housing Case Chiller. Why is it that ordinary consumers seem to be so much better at understanding the economy than economists? What is the real truth about what this data shows and doesn’t show?

 

Join us for our regular extended weekly subscription podcast on Wednesday evening. Click here to join the Radio Free Wall Street subscription series for extended weekly discussions of the markets as well as specific strategies to preserve and grow your capital. Russ Winter and Lee Adler also give extended insights into their work for subscribers to the Wall Street Examiner Professional Edition, and Russ Winter’s Actionable.

 

Scroll down to view the charts discussed in this podcast.

 

audio_mp3_button.png Radio Free Wall Street Free Edition10/27/09 [26:26m]: Play Now | Play in Popup | Download (38)

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Consumers get it right. Economists get it wrong

 

Source

 

Link to ABC News latest poll

 

Click on images below to view full size charts.

 

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concon102709.pngClick to enlarge

 

contclaims102709.pngClick to enlarge

 

percentclaims102709.pngClick to enlarge

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Edging Toward a Turn- Professional Edition

by Lee Adler, Tuesday, October 27, 2009, in Professional Edition, Today's Markets | Permalink |Comments (0) Edit Intermediate indicators remain on the cusp of clear signals of an important turn. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.

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w?s=^AORD

 

 

All Ords sliced through a reasonably strong support today closing -1.4%. Possibility of a dead cat tomorrow but overall it's a bearish look. Financials -2.5% headed the downers followed by Consumer Discretionary -1.6% and Miners -1.4%. Telecomms +1.6% and Healthcare +0.7% were the only up sectors.

 

Another bearish one for Asia: China -1.3%, Honkers -1.7%, India -1.1% and Nikkers -1.5%.

 

 

On to UK/Europe:

 

Footsie

 

image;size=239x110

 

 

DAX

 

image;size=239x110

 

 

CAC 40

 

image;size=239x110

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Australian Commercial Lending Must Be Watched, RBA’s Edey Says

 

Oct. 28 (Bloomberg) -- Australian banks, which have weathered the global financial crisis better than most, will need to be monitored amid an increase in bad debts from commercial property loans, a central bank official said.

 

“This will remain an area to watch in the period ahead,” Assistant Governor Malcolm Edey said in Sydney today. While impairments on home mortgages have held at just over 0.5 percent of total outstanding loans, compared with as much as 6 percent in the U.S., there has been a “more significant deterioration in loan quality in the business portfolio” of lenders, he said.

 

National Australia Bank Ltd., the country’s biggest lender to businesses, today reported a fiscal second-half loss after charges for bad debts from its corporate and small business clients climbed.

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Hong Kong Builders Seek Land-Sale Revamp as Home Prices Surge

 

Oct. 28 (Bloomberg) -- Hong Kong’s biggest developers called on the government to revamp the way it sells land after tight supply led home prices to surge 28 percent this year.

 

At a closed-door meeting yesterday, Financial Secretary John Tsang yesterday told builders that the government won’t rule out intervening in the property market should it become “unfair” and “unhealthy,” a person familiar with the matter said. Among those present were executives from Sun Hung Kai Properties Ltd., the world’s biggest developer by value, and billionaire Li Ka-shing’sCheung Kong (Holdings) Ltd.

 

Rising home prices have led Hong Kong developers to ask the government to increase land sales. To cool the property market, Hong Kong tightened downpayment requirements for luxury homes and suspended mortgage insurance for rental properties. On Oct. 14, Hong Kong Chief Executive Donald Tsang expressed concern about a possible property bubble.

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Japan’s Retail Sales Drop 1.4%

 

Oct. 28 (Bloomberg) -- Japan’s retail sales fell less than economists forecast in September, adding to signs that consumers may be becoming confident about the resilience of the recovery.

 

Sales slid 1.4 percent from a year earlier, the Trade Ministry said today in Tokyo, the smallest drop in 10 months. The median estimate of 13 economists surveyed by Bloomberg was for a 1.6 percent decline.

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Entering the battle zone - 1052 - 1047. If they have the wherewithal, bulls should mount a spirited defense in this area. A bounce back towards 1075 would not be surprising. If bears prevail, support in the 1027 area and then the big round number at 1000.

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