"After a rally, stocks take U-turn down"

[y eye]

"Positive market sentiment evaporated Wednesday and recession fears rose to the fore,
sending shares slipping around the world after a two-day rally" China Daily news front page 16Oct08

Oil dips below $75.00

USD up $0.0164 on CAD

China Daily Website - Connecting China Connecting the World

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"Wafer testing house Ardentec suspends expansion amid weak demand

Ingrid Lee, Taipei
Rodney Chan,
DIGITIMES [Wednesday 15 October 2008]

Wafer testing service provider Ardentec is putting on hold its capital expenditure (capex) plans for the fourth quarter due to low order visibility, according to industry sources.
Demand from the logic IC and memory segment is declining, and the company expects sequential declines in revenues and utilization rates in the fourth quarter, the sources noted.
Ardentec's overall order visibility extends to two months, with lots of uncertainties still shrouding the market, the sources said, adding that it remains to be seen whether there will be rush orders ahead of the year-end shopping season.

Ardentec had a strong third quarter, with sales hitting a company record, thanks to strong orders as well as the depreciated Taiwan currency, the sources said.
The company's utilization for the third quarter reached as high as 90%, compared to the 85% previously predicted by Ardentec president Chi-Ming Chang in July, the sources said.

But the global financial crisis is taking its toll on the consumer electronics market, and foundries are reducing their output, the sources said.
Ardentec already stopped buying new testing devices in September, and no more investment in new equipment will be made in the fourth quarter, the sources said.

In the first three quarters, Ardentec's investment was mostly made in buying 12-inch wafer testing devices for the logic IC segment.
The company originally budgeted NT$1.45 billion (US$44.77 million) capex for the year, and so far it has spent NT$1-1.1 billion."

Source: Wafer testing house Ardentec suspends expansion amid weak demand

[beerandcandy]

I dont think Ardentec is exactly the litmus test for logic IC and memory segments. at their 3-4 million dollars of revenue per year its a bit too low to say the entire markets are declining because they over extended them selves with 12" wafer investments and have to slow down

[TechnologyCoordinator]

I was excited when the market was down because my automatic payroll deducted 401 contribution was about to kick in. It kicked in on the 900+ dow day (I bought high). Gosh darn it, I can't win.

[Simul4ti0n]

Just think thouch TC... when the market is down you're buying more shares at cheaper price in your 401. So when the market does recover, you'll be making bank!

My 401 looks horrible right now, but it's buying cheap. We're young enough that it doesn't matter. The 50+ age group is where it would be hurting.

[BaldEagle]

Just think thouch TC... when the market is down you're buying more shares at cheaper price in your 401. So when the market does recover, you'll be making bank!

My 401 looks horrible right now, but it's buying cheap. We're young enough that it doesn't matter. The 50+ age group is where it would be hurting.

It would be more like the age 55+ group as the market should fully recover within 10 years so those under 55 will see a full recovery in their investments.

A couple thousand more points down and it's probably close enough to a bottom to buy in...

[y eye]

Good day,....
Update:
Dow Drops 733; Another Reason to Like Gold
by Larry Edelson 10-16-08

The credit collapse is not entirely over. Nor is its impact on Main Street.

And as we saw yesterday, there will be more sell-offs, sharp ones that scare the dickens out of nearly everyone.

The article:
1,000-point swings. China and gold ? | Money and Markets: Free Investment Email Newsletter

$2000.00 /oz gold.... yikes

[beerandcandy]

mine is down alot also

[BaldEagle]

Good day,....
Update:
Dow Drops 733; Another Reason to Like Gold
by Larry Edelson 10-16-08

The credit collapse is not entirely over. Nor is its impact on Main Street.

And as we saw yesterday, there will be more sell-offs, sharp ones that scare the dickens out of nearly everyone.

The article:
1,000-point swings. China and gold ? | Money and Markets: Free Investment Email Newsletter

$2000.00 /oz gold.... yikes

$2,000/oz......

As told by somebody that wants to sell you gold.

The real deal on Gold...
Gold futures tumble 5% as investors seek cash - MarketWatch

Some hedge funds were forced to liquidate their positions to cover losses in stocks and other markets, according to economists at research firm Action Economics. Global stock markets saw another day of heavy selling Thursday.
"For the moment, the weight of the deep funk felt in the global markets is keeping gold on the defensive, while would-be buyers ... find more comfort sitting on the piles of cash," said Jon Nadler, senior analyst at Kitco Bullion Dealers.

The contract has surrendered more than $100 an ounce since Oct. 8.
Also pushing gold prices lower were news reports that central banks were selling gold. The latest weekly data from the European Central Bank showed 7.6 tons of gold was sold during the week ended Oct. 10, according to Bloomberg, citing Barclays Capital.

Unless the dollar weakens in relation to all the other currencies that are currently caving faster than dollars investors will park their cash and wait out the bottom. When the market hits bottom gold will plumet to $600 in weeks as money flies out of metals and into securites.

[y eye]

$2,000/oz......

As told by somebody that wants to sell you gold.

The real deal on Gold...
Gold futures tumble 5% as investors seek cash - MarketWatch


Unless the dollar weakens in relation to all the other currencies that are currently caving faster than dollars investors will park their cash and wait out the bottom. When the market hits bottom gold will plumet to $600 in weeks as money flies out of metals and into securites.

.................................................. .................................................. ..


This man has a book for sale; however, there are some very interesting investment princples outlined in his post and frankly, the numbers are scary.
The full article is HERE: The "Super Crash" May Soon Devastate Millions of Americans
Special Bulletin
The “Super Crash” May
Soon Devastate Millions
Of Americans…

Others will get 5 times richer
over the next six months…

Renowned CNBC analyst Peter Schiff has already called 4
major market corrections with uncanny accuracy, saving –
and making – investors millions…

Now he shows you the three ways to be on the winning
side of this “blasted” economy… And it’s yours FREE…



"Dear Reader,

It’s going to cost the average American $85,000 dollars over the next 6-18 months...

But you won’t hear this story from the mainstream press, the Wall Street machine or the bureaucrats in D.C.

Instead, they’ll tell you about the tanking stock market one day… and the housing crisis the next…

You’ll hear about soaring gas and food prices… inflation… the credit crunch… the exploding trade deficit… the stagnating economy…

You’ll hear about the $700 billion bailout… the $60 trillion credit-swap debacle… the plunging Dow… one sound bite at a time.

But they’re missing the big picture.

Fact is, the broad range of threats facing the U.S. economy aren’t just isolated events anymore. They’re swirling together to create a wealth-destroying “Super Crash” growing much more damaging than the sum of its parts…

Indeed, more dangerous than anything we’ve seen since the Great Depression.

Consider…

The government reports that inflation’s now rising at an “acceptable” 2.3%. But that doesn’t include food and gas prices! Add those into the mix and REAL inflation is ballooning 800-900% faster than “official” reports!

And why is gas so high? Before you blame the Saudis or Exxon, consider that the real cause is the dollar. Thirteen years of rampant government spending… interest-rate cuts… and a record $9.1 trillion U.S. deficit have driven it to all-time lows… which has driven up the price of gasoline – and everything else with it!

In the first quarter alone, skyrocketing food and fuel prices have accelerated foreclosures and the mortgage meltdown. It's already sapped more than $305 billion from American wallets.

In turn, all this vanishing liquidity has begun rocking the financial markets, sending massive banks into fire-sale mode… and stocks into the gutter. The Dow recently swan-dived 777 points... In eight hours, shareholders saw $1.2 trillion in equity vanish, capping the blue-chip index’s “worst performance since 1930,” according to the Wall Street Journal.

Indeed, these “unrelated” calamities are anything but unrelated.

They’ve fused together to form a single, interconnected string of financial dominoes falling at breakneck pace. Together they’ve wiped out 10 years of stock gains already… destroying more than $6 trillion worth of American wealth – that’s Trillion with a “T”.

Bottom line is this…
The “Super Crash” isn’t coming… It’s already here
And with the crisis deepening by the day, millions more will suffer the consequences." The "Super Crash" May Soon Devastate Millions of Americans

[y eye]

How China is Beating the United States in the Global Oil Game

By Keith Fitz-Gerald
Investment Director
Money Morning/The Money Map Report

"Iraq recently signed its first oil deal in 35 years with a foreign company.

And – quite surprisingly to many observers – the company wasn't one of ours.

Not surprisingly, the U.S. news media barely acknowledged the deal – even though the agreement was major news throughout the rest of the world.

According to reports from Baghdad, the 22-year deal between the Iraqi government and the China National Petroleum Co. involves $55 billion, or 87% of Iraq's current total revenue at a conservative long-term estimate of $100 a barrel.

The deal is actually a renegotiated version of a 1997 agreement between China and a Saddam Hussein-led Iraq. That original deal included production-sharing rights, but under the new contract China will be paid for its services, but will not share in profits, The New York Times reported. The payments will be made..."

Read the full article" How China is Beating the United States in the Global Oil Game