Stock Market Update -Mar 30th

The week started off well with a strong rally on Monday following the rally on Friday, but then the market dropped every day for the rest of the week -this is what happens in a bear market. Note that the market has been down now for the last 2 quarters. (click image to enlarge)


There are lingering concerns about the credit markets, and the banks and brokerage houses. In the news, JP Morgan this week changed their buyout bid for Bear Stearns from $2 to $10 per share. Also Oil rebounded this week, while the US Dollar tumbled again after a brief rally the previous week when the FED dropped interest rates; the Fed also offered $100 Billion More to Commercial Banks on Friday (when will it end?).

In case you didn't notice, the markets in China have also lost considerable ground since last October. Other high fliers GOOG and AAPL have also lost considerable ground, while one of the few stocks that has been rising in this bear market has been WMT.

Next week: Monday we will hear the proposal for new regulations in the financial markets. Also Fed chairman Bernake will testify before the Joint Economic Committee on Wednesday, and on Friday we get the much anticipated jobs report. Expect more volatility -and remember, we are still in a downtrend.

News stories:
Paulson to propose financial market overhaul
Credit crunch 'at $1.2 trillion'
U.S. home prices plunge 10.7% in past year: S&P
NOT NEAR A BOTTOM
Ten Days That Changed Capitalism
US Death Toll in Iraq War Hits 4,000
Stocks and Indexes mentioned in this blog are for educational and illustration purposes only.