We are witnessing a rally in the market for sub-prime securities which will likely deliver a significant boost to U.S. banks’ Q3 earnings, if they choose to book accounting gains on assets that caused them billions of U.S. dollars in losses during the recent crisis.

Savvy market observers say the significant rise in the price of mortgage-backed securities and other once-hammered debt offers banks the first meaningful chance to adjust up some of the value of these assets.

HYTM remains on the strong buy list at Ebeling Heffernan as we consider raising the price target given the recent news from the company. HYTM signed a 3 year deal with Ford Motor Company (NYSE:F) for 3 years. This revenue has not been determined as yet, however given the new low cost operating model introduced at HYTM we expect to see profitable quarters commence in 2010.

An added bonus on HYTM is the exceptionally large short position that has grown out of speculation the company would fail to meet NASDAQ listing requirements, given the the placement made for $7m in cash that now removes the capital issue, next issue, the $1 bid price. The institution putting $7m at risk would have gone to great lengths to assure that HYTM would be compliant with the $1 rule very soon.

As regular readers would know, DryShips (DRYS) has been one of my favorites for some time, as both myself and Paul have published a number of research articles on this one including a report on how DRYS was trading well behind the Baltic Index. DRYS and GE marked our financial services divisions' first "house trades" over the last few months and Buzz Inc has good sized positions in both.

DryShips Inc reported better than expected quarterly earnings, helped by the recent rise in spot charter rates that the Baltic Index indicated 2 months ago. DryShips also seen an increased contribution from its offshore drilling segment.

US Economy: Housing Starts in the USA run to Seven Month High

Housing starts in the USA rose in June as construction of single-family dwellings jumped by the most since 2004, signaling the market is stabilizing and getting better. The 3.6% increase brought starts to an annual rate of 582,000, the highest level since November and followed a 562,000 pace in May that was higher than previously estimated, the Commerce Department said today in Washington. A report from the Labor Department showed Georgia and Alabama became the latest states where joblessness topped 10%. The construction figures are the latest evidence that the meltdown is nearing an end. Builder shares climbed for a fifth consecutive day. Economists forecast starts would fall to a 530,000 pace, from a previously reported 532,000 in May, according to the median of 73 forecasts in a Bloomberg News survey. Last month’s reading exceeded the highest estimate, with projections ranging from 479,000 to 564,000.

This article has been removed for violation of copyright. To read the original article by Luke Burgess, please go to http://www.goldworld.com/articles/who-owns-worlds-gold/429.

NXHZ [OTC:NXHZ] a month ago looked like any other struggling Cable aggregator, however that changed dramatically with 3 announcements. The first was an upgrade to the latest technology that on the face of it looked like over kill for the size of the firm's current subscriber base.

That was quickly followed by news the company was building an extra 1200 mile of Fiber-Optic cable in California which made the technology announcement look more realistic, but then came the big news, the acquisition of a cable operator in Mexico more than doubling the size of operations immediately and giving them the ability to expand into one of the world’s biggest Cable Markets, South America.

U.S. Dollar Trading (USD) gave up some of the strength seen post Non Farm Payrolls after Japanese stocks and Oil rallied off lows. Trading was light however with the US away for July 4^th holidays so markets will look to Monday to see if the bearish sentiment continues. Crude Oil down $1.30 at $65.30. In US share markets, markets closed Friday. Looking ahead, ISM Non-Manufacturing forecast at 45.9 vs. 44.

The Euro (EUR) pivoted the 1.4000 level in thin trade after bouncing off 1.3930 in Early Asia. Weak Oil and Stocks capped gains. Eurozone Retail Sales fell 0.45 in May, slumping to a -3.3% y/y. Overall, the EUR/USD traded with a low of 1.3927 and a high of 1.4028 before closing at 1.3970. Looking ahead, July Sentix forecast at -24 vs. -27 previously.

Hot Topic: Corporate earnings will set the tone for stocks in weeks ahead

The start of Y 2009 Q-2 earnings season begins this week and may be a Key factor for determining how much faith investors will have in an economic recovery. After a rally of as much as 40% for the S&P 500 on expectations the economy will begin to turn around by year end, analysts will hone in on companies' projections to see if their hopes are corroborated. The light menu of economic data will help keep the spotlight on earnings releases, with bellwethers Alcoa (AA) and Chevron (CVX) posting their quarterlies. Of even more importance will be any outlook companies give for what they expect to see for the rest of the year. A large US Treasury auction could buoy the market if it shows there is good demand for government debt. Concern that the appetite for debt is waning as the government tries to fund its stimulus efforts was soothed by solid demand in last week's record US$104B auction of Treasury securities.

Stock prices took off on March 9, 2009 at precisely 15:00 hrs EDT, as investors and traders moved back into the hammered financial and technology sectors.

The S&P 500 index tallied up + 40% after hitting a 12-year closing low in March, helping all 10 S&P sectors advance in the Q-2.

U.S. dollar trading (USD) was on the back foot as global equity markets continued to rally. News that China is looking for global reserve currencies to be on the agenda at the next G8 meeting added to the downside pressure. Data was mixed with ADP private unemployment falling -473K in June vs. -393K forecast. May pending home sales at 0.1% vs. 0.0% forecast. June ISM Manufacturing climbed to 44.8 vs. 42.8 previously. Crude oil closed down $0.58 to close the day at $69.31.

In US share markets, the Nasdaq was up 10 points or 0.58% and the Dow Jones was up 57 points or 0.68%. Looking ahead, June Non Farm Payrolls forecast at -363K vs. -345K previously. The unemployment rate is forecast to rise to 9.6% vs. 9.4% previously.

CURRENCY TRADING SUMMARY – 1^st July (00:30GMT)

U.S. Dollar Trading (USD) enjoyed gains as optimism was dampened by a dramatic slump in Consumer Confidence in June. Forecast at 55.4 vs. 54.9 previously, the 49.3 reading led to a sharp sell off in oil which had hit year highs in Asia. This in turn led to commodity currencies such as the CAD being sold. Crude Oil closes down $1.60 to close the day at $79.89. In U.S. share markets, the Nasdaq was down 9 points or -0.49% and the Dow Jones was down -82 points or -0.97%. Looking ahead, ISM Manufacturing June forecast at 44.5 vs. 42.8 previously. Also released, ADP Employment Report forecast at -393K vs. -532K. May Pending Home Sales are forecast flat 0% vs. +6.7% previously.

Crude Oil hit an eight-month high Tuesday before reversing as investor sentiment waffled in the face of negative economic data from the U.S. Volatility in the energy markets defied predictions for a docile trading week cut short by U.S. Independence Day, with Crude breaching US$73bbl during Asian trading before stumbling back below US$70.

Weaker-than-forecast U.S. consumer confidence data and the U.S. dollar rising against the Euro were seen by some as prompting the later falls, while others argued that the unusually high trading volumes overnight in Asia were evidence that large investment funds had been changing their Crude Oil positions for the end of the quarter, causing a temporary price rise. Nevertheless, Crude Oil registered its largest quarterly gain since 1990.

Growing confidence that the US economy is putting the worst recession in decades behind it has pushed the index known as Wall Street's fear gauge to its lowest level since just before Lehman Brothers collapsed last September.

The CBOE Volatility Index .VIX, known as the VIX, provides investors with portfolio insurance against fluctuations in the S&P 500 index .SPX. It soared to historic highs in the weeks after Lehman's rapid failure pushed financial markets to the brink and left an already crippled economy in tatters.

A short week in the USA this week with no real economic data until Tuesday. This is certain to be a rally week, with a falling USD and rising Gold and Oil Prices. The Dow may well approach 9000 this week so the index sensitive stocks should be your main target for trading. Tuesday's news includes Pending Home Sales, Motor Vehicle Sales and Consumer Confidence. I would think all 3 will surprise with on target or better than expected results.

Unemployment in the U.S. probably rose at a slower pace and the manufacturing slump eased this month as evidence mounted that the end of recession is in view, economists said before reports this week.

Hot Topic: US Ramping Up Wind Power Programs and power storing fuel cells

The United States is making a serious effort to increase the amount of electricity that’s generated by wind turbines grouped into wind-power “farms.” Attempts to harness the wind are part of a broader national, and global, commitment to “green” energy sources as a way of reducing dependence on Crude Oil and other fossil fuels for power generation. i.e Natural Gas and Coal. Other power sources include solar, geothermal, hydroelectric and nuclear for commercial electricity production, while automakers are looking at new types of batteries and such innovations as power-storing “fuel cells” as alternatives to the conventional internal combustion engines that power most of the world’s cars and trucks. The objectives are twofold. By decreasing the US reliance on foreign Crude Oil, the country is hedging against the time when global supplies of the “black gold” begin to dry up, an eventuality that will propel the prices of crude and gasoline skyward.

Gold Price Close Friday : 940.70 Gold Price Close 19th of June: 935.6 Change: 5.10 or 0.5%

Silver Price Close Friday: 14.128 Silver Price Close 19th of June: 14.189 Change: -6.10 cents or -0.4%

Crude Oil prices held above US$70 bbl today in Asia as investors considered mixed signs about the strength of the US economy and Crude Oil demand. Benchmark crude for August delivery added 39 cents to US$70.62 bbl by midday Singapore time in electronic trading on the New York Mercantile Exchange. On Thursday, it gained $1.56 to settle at US$70.23 bbl. Crude Oil was bolstered by fears another attack by Nigerian militants on the West African country’s oil installations could crimp supplies. “We still have a long way to go before we’re out of the current recession,” said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. “Supply and demand fundamentals have to come back into play.” Moltke-Leth said the Crude Oil price will likely rise to US$75 a barrel before drifting to near US$60 by the end of the year as investors become disillusioned by a sluggish economic recovery

Investors in the USA were cheered Thursday by better than expected earnings reports from homebuilder Lennar Corp. (LEN) and home furnisher Bed Bath & Beyond Inc. (BBBY). Lennar and Bed Bath & Beyond are covered in today’s Red Roadmaster Stock Talk.

Whether it is a battery for the latest laptop, energy storage for a hybrid electric vehicle, or backup power for a remote telecommunications site, everyone wants a battery that has the highest energy density, best safety factor, and longest life in term of discharge cycles and ease of maintenance while still being environmentally friendly. These are the drivers behind rechargeable battery research around the world today. Rechargeable batteries, also known as storage batteries, are a continuing strong market, with worldwide sales of $36 billion in 2008. The rechargeable battery market will rise to $51 billion by 2013. This does not include batteries for Mobile Devices or Transportation. (Market Research From SBI sbireports.com)

Operational Fuel Cells are set to become the next boom sector, as the Oil price continues to rise and the USA motor vehicle industry has been ordered to reinvent itself, The value Fuel Cell technology will increase dramatically over the next year as some of the worlds largest companies will be producing goods that will be reliant on Fuel Cells, GM (GMGMQ.PK), GE, Ford (F), Toyota (TM) are all looking to have Fuel Cell cars on the road in the coming 5 years.

Right now there’s more than US$9.2T in cash on the sidelines; that is more than twice the amount of money currently invested in stock mutual funds, according to MoneyNet.inc and the US Federal Reserve. Plus, private equity firms alone are believed to hold as much as an additional US$1.3T.

The U.S. dollar (USD) continued to trade in a wide range with the market selling USD ahead of the FOMC only to buy them back after a less dovish than expected statement. Adding to USD strength were reports that the SNB was intervening on CHF through USD/CHF in a dramatic move yesterday. Weak stocks in the US let the USD keep most of the gains into the US close. Crude oil closed down $0.70 to close the day at $68.50. In US share markets, the Nasdaq was up 27 points or 1.55% and the Dow Jones was down -23 points or -0.28%. Looking ahead, weekly jobless claims are forecast at 600 vs. 608K previously. Also released, final GDP Q1 forecast to remain at -5.7% q/q.

The euro (EUR) traded above 1.4100 as the euro hit highs in early Europe before falling as the USD was supported by a good Treasury auction and secondly by the FOMC comments excluding deflation talk. Stocks and oil continue to underpin the euro going forward. Overall the EUR/USD traded with a low of 1.3888 and a high of 1.4140 before closing at 1.3940. Looking ahead, April Industrial Orders are forecast at 0.0% vs. -0.8% previously.