Markets Suffer Huge Sell-off, U.S. Loses AAA Credit Rating

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http://ymlp61.com/zI1t6b ——————————————————————————– August 7, 2011 Week In Review…

Week In Review For August 1st to August 5th, 2011 CanadianCompanies mentioned include:

* Medicago, Inc. (TSX:MDG) * Saturn Minerals, Inc. (TSX-Venture:SMI) * Tres-Or Resources Ltd. (TSX-Venture:TRS) * Asia Now Resources Corp. (TSX-Venture:NOW) * Augen Gold Corp. (TSX-Venture:GLD) U.S. Companies mentioned include:

* NEI (NASDAQ:NEI) * Easylink Solutions Corp. (Pink Sheets:ESYL) * SET Corp. (OTCBB:SETS) * Nutra Pharma Corp. (OTCBB:NPHC) * Bizzingo, Inc. (OTCBB:BIZZ) This week on AllPennyStocks.com:

* Article Published, August 2, 2011: Junior Miner Looking to Take Off Where Barrick and Kinross Left Off (http://allpennystocks.com/aps_ca/special_reports/205/Junior-Miner-Looking-to-Take-Off-Where-Barrick-and-Kinross-Left-Off.htm) (CDN Company) * Article Published, August 3, 2011:Micro-Cap CEO Files Form 4 to Buy 500,000 Shares of Own Company (http://allpennystocks.com/aps_us/special_reports/197/Micro-Cap-CEO-Files-Form-4-to-Buy-500,000-Shares-of-Own-Company.htm) (US Company) * Article Published, August 5, 2011:Junior Miner Leading Gold and Copper Explorers in Columbia (http://allpennystocks.com/aps_ca/special_reports/206/Junior-Miner-Leading-Gold-and-Copper-Explorers-in-Columbia.htm) (CDN Company) Video charts for the week:

* August 2nd Technical Video Chart For ESYL. The Easylink Solutions stock chart is holding a new support at 30 cents. Yesterday`s rise of 12 percent is showing signs that a reversal after a major drop – or at least a temporary bounce – may be in the works. Technical traders will have a keen eye on the new support and volume to add validation to a move. view:

( http://www.youtube.com/user/AllPennyStocks#p/a/u/0/7L4DIngc6JQ ).

* August 3rd Technical Video Chart For V.SMI. The Saturn Minerals stock chart is holding its own despite tough market conditions. Still trying to make a higher low, support comes at many levels with technical traders paying close attention to the support at $0.265.

The pps is still holding the 50 day moving average as well as the chart stays on radar to potentially take a run at resistance at $0.30.

view:

( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/-TpN_BnHghg ).

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WEEKLY UPDATE – NORTH AMERICAN MARKETS NOSEDIVE ON U.S. AND INTERNATIONAL ECONOMIC FEARS If Frank Barone from “Everybody Loves Raymond” commented on this last week in the North American markets, it`s a pretty safe bet that he would have let go with his famous line, “Holy Crap!” The markets were unified in a downward spiral with only two days of convulsions that produced any sort of upward movement which was quickly swept away with far more significant downward pressure. There was very little to cheer about as global economic fears gripped the investment community mostly causing an exodus from equities, some metals and energy plays during the week. As a result, the Dow Jones Industrial Average suffered its worst one-week point drop since October 2008. Since July 22nd, the Dow has coughed-up roughly 13 percent. Friday was especially volatile with approximately a 400 point swing occurring that was spurred by a better than expected jobs report that sent the market upward, but quickly thwarted by uneasy investors. This followed a 513 point fall on Thursday for the Dow; the worst one day dive since December 2008. Toronto stocks wrapped the weak with another soft day on Friday, kissing to their lowest levels since August 2010.

The big news of the week did not come until several hours after the closing bell on Friday as Standard & Poors slashed the United States credit rating from its sterling AAA rating down a notch to AA+, with a negative outlook. The U.S. government contests that S&P`s analysis is flawed. This marks the first time since the rating system began in 1917 that the U.S. has been downgraded from its perfect mark. The market may have seen this coming and was a reason for the plummet these last couple of weeks, but that still remains yet to be proven as the opening bell on Monday will surely tell us more. Talk of a “double dip” recession is monopolizing the airwaves again. QE1 and QE2 kept the economy afloat. Time for QE3 International economic worries again stemmed from Europe as concerns over Italy`s stability enthralled investors. With the Italian economy only growing 0.3 percent in the second quarter, debt fears are on the rise. With the spread between Italian and German bonds overtaking that of Spain, Italy was thrust to the forefront of the sovereign debt crunch. Yahoo Finance offered a compelling analogy simplifying the European woes in describing Europe as “a dysfunctional family where Germany and France are the respectable parents being asked to repeatedly bail out their reckless children [Portugal, Italy, Ireland, Greece and Spain].” As if the cutting of the credit rating for the U.S. wasn`t enough news, the debt ceiling debacle also was in the news as the deadline to a decision came early in the week. The two battling parties in Washington, D.C. did somewhat come to terms as an agreement was reached which would cut spending by more than $2 trillion and raise the debt ceiling (big surprise, right) to help the U.S. avert a default on its bills and possibly a global financial disaster.

August gold continued its upward momentum despite a brief sell-off after a spike to levels above $1,680 per troy ounce on Thursday.

August gold concluded the week at $1,663.00, climbing 1.3 percent on the week, the fifth straight gain. Silver slipped with September delivery rolling back to $38.211 an ounce on the Comex, concluding a 8.5 percent two-day drop. For the week, silver subtracted 4.7 percent, the largest pull-back since the beginning of May.

Canadian stocks had a rough week in general as Friday capped another tough stretch with July employment figures that came in under expectations. The unemployment rate contracted to 7.2 percent from 7.4 percent in June, but only 7,000 jobs were added for the month, well below the 15,000 that were estimated. The sovereign debt and U.S. economic turmoil are weighing heavily on the Canadian markets.

The S&P/TSX Capped Energy Index demonstrated the nervousness in the Canadian markets. The index fell by nearly ten percent on the week, settling at 281.67 at the closing bell on Friday. With the recent fall in crude prices, the black gold has wiped out all of its gains from 2011. September crude closed the week at $86.10. Natural gas closed below $4 this past week for the first time since March.

Banks and mortgages were back in the limelight on Friday as Bank of America Corp. took a spanking to the tune of a 7.5 percent drop after an SEC filing on Thursday disclosed that it had surprising demand for refunds on loans gone bad from Fannie Mae and Freddie Mac.

The S&P TSX Composite Index continued the previous week`s slide; diving by 783.46 points, or 6.05%, on the week to 12,162.17. The TSX Venture Exchange fell for the second week in a row, a jaw dropping decline of 167.61 points, or 8.471%, to finish at 1,811.49.

In the States, the Dow Jones Industrial Average took a pummeling again;nose-diving 698.63 points, or 5.75%, on the week to 11,444.61.

The much-broader S&P 500 followed, subtracting 92.90 points, or 7.19%, on the week to close at 1,199.38. The tech-rich NASDAQ Composite paced all the laggards by losing 223.97 points, or 8.13%, to close at 2,532.41.

On Monday, the U.S. Commerce Dept. reported that construction spending rose in June for a third consecutive month, led by a gain in nonresidential building, including factories, communications plants and commercial structures. Spending rose by 0.2 percent following a revised 0.3 percent climb in May.

On Wednesday, U.S. data showed a weakening of the ISM Non Manufacturing figure. July`s reading of 52.7 was down from June`s 53.3. ADP reported that U.S private employers added 114,000 jobs in July, beating estimates by economists. Additional economic data showed that the manufacturing sector grew in July for the 24th straight month, although it was at its slowest pace in two years. The Institute for Supply Management`s index still registered above 50, indicating growth, but slipped to 50.9 percent last month from 55.3 percent in June.

On Friday, Statistics Canada reported that municipalities issued building permits worth $6.6 billion in June, up 2.1% from May, when growth was 20.9%. The increase in June was largely attributable to higher construction intentions for industrial and institutional buildings in Ontario and multi-family dwellings in British Columbia.

Regarding employment, following three consecutive months of increases, employment was little changed in July. The unemployment rate declined by 0.2 percentage points to 7.2%, as fewer people participated in the labor market. Employment increased by 252,000, or 1.5%, compared with July 2010, with most of the growth in full time work and among private sector employees. Stateside, the Labor Department said U.S. nonfarm payrolls climbed by 117,000 in July after an upwardly revised 46,000 addition in June. As a result, the unemployment rate fell to 9.1 percent.

Next week, investors will be on the lookout for StatsCan to report on housing starts on Tuesday. Thursday will bring updates on June`s New Housing Price Index and information on Canadian international merchandise trade.

In the States, the Fed will announce an interest rate decision on Tuesday; Thursday will bring information on jobless claims as well as the U.S. trade balance; Friday will conclude the data week with July`s retail sales (ex autos) and Reuters/Michigan Consumer Sentiment Index for August.

Among the stocks we watched this week, services company, Medicago, Inc. (TSX:MDG) gimpled right along with the markets despite coming out Monday and Tuesday with gas to hit an intraweek high of $0.71. The latter part of the week proved momentum to be lost with the stock closing at $0.62, down 6 cents, or 8.82%. The other stock we had on radar, energy company Saturn Minerals, Inc. (TSX-Venture:SMI) performed similarly; closing the week down 3 cents, or 10.17%, at $0.265 after touching $0.2955 early on for its intraweek high.

In the States, tech company Easylink Solutions Corp. (Pink Sheets:ESYL) provided a great opportunity for gains by hitting an intraweek high of $0.44 on Tuesday, but then slid back to close the week down $0.042, or 12.73%, at $0.288. The other U.S. stock on our watchlist, fellow tech company NEI (NASDAQ:NEI) completed the sweep of all the penny stocks to watch moving up and then back down over the week with the general market selloff. The stock closed down by 8 cents, or 5.97%, at $1.26 after hitting its intraweek high of $1.42 in the first half of the week.

If you`d invested in all four stocks and held them to the end, you`d have seen an average loss of 9.42%. However, if you`d bought all four at the beginning of the week and sold each at its peak, you would have realized gains of 10.97%.

Next week, we focus on Tres-Or Resources Ltd. (TSX-Venture:TRS) and Asia Now Resources Corp. (TSX-Venture:NOW) and In the States, look for big things from SET Corp. (OTCBB:SETS) and Nutra Pharma Corp.

(OTCBB:NPHC).

Clearly August didn`t kick-off the way that the investment community would have liked it to. It`s still a long way to the end of the month and, as we all know, things can change at the drop of a hat.

Volatility is again getting traction and preying on investors` fears as demonstrated in all four “penny stocks to watch” this last week.

So, trade smart, keep your composure and secure gains when they present themselves.

We introduced our latest Canadian spotlight with Augen Gold Corporation (TSX-Venture:GLD) on Thursday and are completing our diligence on another U.S. company coming next week. The company we are examining appears to be pumping up its muscles for a surge in marketing and revenue drive, plus they have a huge sports legend endorsing their efforts, so keep your eyes peeled on your inbox for us to release what we have found.

One of our current U.S. spotlights, Bizzingo, Inc. (OTCBB:BIZZ) announced their latest development on Friday with their novel business to business social media website, bizz.net. After launching the site nearly a month ahead of schedule, Bizzingo reported that it will be phasing in its next tier of business functions to its new Bizz.net business search and networking platform. New features include a full-text searchable index (by keywords), a profile page, user-branded landing pages, dashboard controls and direct messaging capabilities.

BIZZ struggled with the markets this week, but just may be ready to make a rebound as they keep expanding their functions and footprint within the social media industry.

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