Stock Market Update -Sep 7th

The market dropped sharply on Thursday after disappointing jobs numbers, followed on Friday by a 6.1% unemployment rate announcement. This is the 8th month in a row with a drop in employment figures. The S&P 500 is now back to where it was about 3 years ago -so much for the buy and hold strategy! The better strategy is to always close or hedge your positions when the trend reverses...

Yet another bank shut-down was announced on Friday. Meanwhile there is talk of a government bailout to be announced this weekend for battered and bruised Fannie & Freddie.

(click here for a longer term look at the US Dollar)

Next week we could see more volatility in the markets. As I mentioned last week, historically we see selloffs in September (and October) -so far its proving to be true again. In spite of the recent Dollar rally, there is an overwhelming amount of bad news out there, so be careful (mortgage defaults, unemployment, credit market lockup, global slowdown, etc...)

Overseas markets have been selling off as well. Commodities also continue to sell off. We could see Gold hitting 650-700.

Breaking news:
Fannie Mae, Freddie Mac Taken Over by U.S. Government to Prevent Collapse

This Stock Rally Is Over And Here’s Why
Unemployment rate unexpectedly soars to 6.1%
Fannie And Freddie: Massive Fraud Breakdown
U.S. Rescue Seen at Hand for 2 Mortgage Giants
U.S. Mortgage Foreclosures, Delinquencies Reach Highs
9% Of All Mortgages In Default/Foreclosure
Florida Real Estate Bottom Signaled by Sale of Distressed Condo
Goldman tells clients to sell Merrill shares

Dollar Advances to Seven-Month High Against Euro as Oil Slides
Gold falls for fifth session on oil; down $32 in week
Firestorm Erupts Over U.S. Banks' Gold, Silver Shorting
Big commodities hedge fund shuts down
The $64 Trillion Question: What's the Dollar Really Worth?
Main Bank of China Is in Need of Capital
How China's Bet on US Paper Went Wrong
Russian assets tumble amid worries about ruble