FINANCIAL EXPRESSIONS

Market Directions & Trends (SIGNALS): Surged, ClimbedRose / Rebound

Dropped,Fell, Plunged,Tanked

RocketedJumped“Run Up”

DippedTumbledDived, Sank, Tanked

SoaredLiftedSharp Rise

What Subject? (e.g. Earnings, Revenues, Stocks, Confidence)or Markets/Indices: DOW, NASDAQ, S&Por Currencies (Dollar/Pound/Euro/Yen/Yuan)

Which direction? (e.g. climbed/fell)What caused it? News Reports/Data Events Projections Legislation/Regulations Company Performance Negative outlook M&A Investor Sentiment

Positive Market Words: Earnings Rise Revenues Rise Operating Margins Rise Double-Digit Gains Economic Growth Impressive Earnings

Neutral Market Words Stabilized Mitigate

Negative Market Words Disappointing Earnings Missed Revenue Targets Weak Forecasts Slowdown Fueling Pessimism Slump Inflation Warnings

MARKET RISKS Equity risk, or the risk that stock prices will change. Interest rate risk, or the risk that interest rates will change. Currency risk, or the risk that foreign exchange rates will

change. Commodity risk, or the risk that commodity prices (i.e.

grains, metals, etc.) will change.

MARKET TRENDS

A bull market tends to be associated with increasing investor confidence, motivating investors to buy in anticipation of further capital gains.

A bear market tends to be accompanied by widespread pessimism. Investors anticipating further losses are motivated to sell; Note: Prices fluctuate constantly on the open market; a bear market is not a simple decline, but a substantial drop in the prices of a range of issues over a defined period of time.

A temporary decrease during a bull market is called a correction. Note: Major disasters or negative geopolitical events can spark a correction

A temporary increase during a bear market is called a bear market rally.

An exaggerated bull market fueled by overconfidence and/or speculation can lead to a stock market bubble

Muted ReactionFlood foreign investmentFavorable/Stricter Regulations

Earnings Picture Earnings Surprises Record Breaking High Fell short of Estimates Beat Estimates Improved Earnings

Market Close Status: Stayed Flat Pulled Back Ending Streak New High

MARKET FACTORS

GDP Growth Rate – nations income expanding or contracting?GDP is sum of final goods/services produced /year at its market value

Industrial Market Movers GDP Industrial production index Durable Goods Unit Labor Cost Producer Price Index Unemployment Rate Business Failures & Business Starts

Consumer Market Movers Consumer Price Index Personal Income Consumer Confidence Consumer Installment Credit Auto/Retail Sales Housing Starts

Monetary and Financial Market Movers Interest Rates1

Yield Curves (relation btwn bond yields & maturities)

Federal Reserve and other Govt. banks2

Open Market Operations, Money Supply Inflation Debt & Deflation Dow Jones Industrial Avg (largest companies) Standard & Poors 500 (broader market) Leading Economic Indicators

Global Market Movers Oil Prices Economic Powers (G9) Global Stock Markets Balance of Trade Foreign Exchange Rates (FOREX) Value of Dollar, Euro, Yuen

1 Consumer demand increase IR, consumers paying debt or spending less, demand for money is down, IR drops2 Clearinghouse, Currency controller, MS controller, auditor, bank of banks

3 Key Domestic Market Movers Interest Rates Inflation Unemployment

Event Driven Market Movers New Regulations/Treaties/Agreements (Domestic & Interntl)

Unexpected Events War (Threat of War) Financial Community Scandals

BUSINESS CYCLE

TROUGH TO RECOVERY :GDP Industrial Production Capacity Utilization Unit Labor Cost Producer Price Index

RECOVERY TO EXPANSION DOW Consumer Price Index Consumer Confidence Personal Income Auto/Retail /Housing Starts

EXPANSION TO PEAK Capacity Utilization Unit Labor Cost GDP Industrial Production Producer Price Index

PEAK TO CONTRACTION Consumer Price Index Personal IncomeConsumer ConfidenceAuto/Retail /Housing Starts