Stock Market Update -Mar 8th

The market sell-off continues, with the Financials leading the way again (some big losers in the DOW were Citibank, JP Morgan, GE, and General Motors). The major indexes have all lost at least 50% of their value from last year's high (DOW, NASDAQ, S&P500). The Financial sector has lost a little over 80%! More reasons to abandon that 'buy & hold' strategy that the 'experts' say we should use.

New unemployment claims came in over 600,000 again, with the jobless rate now standing at 8.1%. Oil prices started to move up, closing the week around $45 per barrel, and yet another bank was shut down this week.

Keep your eye on the debt clock (on the left) -now approaching $11 trillion!


Next week we could see more of the same unless some good news start to filter in. The S&P500 has now broken below the low-point we saw last November -not a good sign (see chart above). There is now talk of removing Citibank, Bank of America, and GM from the DOW as their valuations continue to dwindle -this could provide a boost for the DOW. Also, keep an eye on the US Dollar -we may be seeing a 'double top' in the recent US Dollar rally.


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