GOIH Capital Markets: Market Overview----10-10-07

Based on our indicators the market is set to open lower today after the run up on Tues. after the Fed released the minutes of the FOMC meeting in Sept. The various commentators don not agree on the meaning of the Fed's 50 bps cut and some are a little unnerved concerning the rate cut. Our indicators and models predicted a move by the Fed of between 25-50 bps, so we were not unprepared for the move by the Fed.

The market is moving ahead rapidly now it appears that the Fed will not allow any major failures to financial institutions or any of the large brokers. The rate cut aided the financial sector disproportionally as well as the exporters, which is good for the manufacturing base. Cap. Ex should increase with the increase in exports as well as foreign investment in the US should also increase with the decline of the dollar relative to the other major currencies.

The Yen carry trade is alive and well as the dollar has strengthen against the Yen now to 117.24. We hold a position at 114.23 Yen and the position increases in value