Stock Market Update -Mar 1st

This was another bad week for stocks. We heard from the Fed chairman, The President on the budget, General Motors, Citibank, more bad housing numbers, unemployment, and a knockout negative GDP number (-6.2%) -all contributing to the continued weakness. Oddly enough, the financial sector was the only gainer in the S&P 500 (see chart below).

Oil rose above $40 while Gold dropped from $1000 to around $940. The US Dollar also rose this week, while the 30 year Bond headed lower. Once again, first-time unemployment benefits crossed the 600,000 level and the nation's jobless rate is now at 7.6 percent. Two more banks were shut down this week.


Next week we get the monthly Payroll report on Friday. The major stock indexes are now testing the November lows -we'll have to wait and see if they rebound from those levels, or continue going down. (see sample trade here)

The European Central Bank and Bank of England will make interest rate announcements this week which could affect the currency market.

Some interesting stats from CNBC:
*The Dow & S&P turn in their worst February performances since 1933 when the Dow lost 15.62% and the S&P lost 18.44%
**The Dow turns in its biggest February point drop since its inception in 1896, losing 937.93 points for the month

Stocks finish down 50% from 2007 highs
S&P 500 Finishes At Worst Level Since December 1996
Will the banks survive?
Citigroup's Clever Plan to Shaft Taxpayers Again
U.S. government to own up to 36% of Citi
Citigroup Beats WorldCom, Sets Stock Trading Record
Is Citi the next AIG?
AIG: The bailout that won't quit
GM loses $9.6 billion in fourth quarter
California unemployment rate over 10%
JPMorgan warns of more housing woes
Trump Entertainment files for bankruptcy
Buffett's worst year

Obama unveils $3.6 trillion budget for 'new era'
Obama Plans to Reduce Budget Deficit to $533 Billion by 2013
Why Obama's Economic Plan Will Fail
U.S. Economy: GDP Shrinks 6.2%, More Than Estimated
Economy moving in reverse faster than predicted
Housing Prices in 20 U.S. Cities Fall a Record 18.5%
Europe's Crisis: Much Bigger Than Subprime, Worse Than U.S
Volcker: Crisis May be Even Worse than Depression

Stock Market Update -Feb 22nd

The market lost ground again this week, with the financial companies leading the way down (see chart on the right below). Once again this week, we saw the number of americans who applied for first-time unemployment benefits cross the 600,000 level. Another bank was shut down this week as well.


Next week we may get more clarity on the banking situation, good or bad! Meanwhile, the DOW is now just below the low point established back in November, and the S&P is almost there (see chart above). We could be near a reversal point, or it could just keep on going down -remember we are still in a vicious bear market!

About the only thing that seems to be going up right now is gold, and gold and silver stocks (ABX, AEM, AUY, EGO, GG, GRS, HMY, IAG, KGC, RGLD, SLW, VGZ). They are probably ready for a pullback at this point though, many of them having been up more than 100% since the October bottom.

Major indexes fall more than 6 percent for week
S&P heads to first quarter ever of negative earnings
Charts Predict: S&P Down to 600
Continuing jobless claims set record
Saab in Bankruptcy Filing; G.M. Seeks More Aid
Gold tops $1,000 an ounce
U.S. Tries a Trillion-Dollar Key for Locked Lending
Rating the Top 12 U.S. Banks - From Hidden Gems to Zombies
Nationalization concern dogs Citi, Bank of America
Get ready for a wave of bank failures
Russia goes from splash to crash as commodities tumble

How to lose money in 10 years
How to lose money in 20 years

Stock Market Update -Feb 15th

The market dropped again this week. The big expectation from the Treasury Secretary regarding the banks was a big letdown. New unemployment claims came in above 600,000 again for the week, and four more banks were shut down by regulators. Gold prices continue to move up.


Next week we have options expiration for February. The market could very well fall back to the November lows from here.

Microsoft announced that they will now open retail stores -another gaff from Microsoft in my opinion. This company has lost its way.

S&P heads to first quarter ever of negative earnings
Stock slaughter
The rise, and potential fall, of America’s banks
U.S. Foreclosures Top Quarter-Million for 10th Straight Month
JPMorgan, Banks to Halt Foreclosures for Three Weeks
U.S. House Passes Obama’s $787 Billion Stimulus Plan
Summers Says Obama Mortgage Plan to Focus on Lowering Payments
Gold hits seven-month high on safe-haven buying
Japan’s Economy Plunges at Fastest Pace Since ’74
Microsoft to open own stores, take on Apple
Stocks and Indexes mentioned in this blog are for educational and illustration purposes only.

Stock Market Update -Feb 8th

The market was up nicely this week, especially the financials, in spite of the bad jobs data we got on Thursday and Friday (unemployment rate now at 7.6%). This time new unemployment claims for the week soared past 600,000 to 626,000! Oil prices are still range-bound in the $40 area, while Gold prices continue to rise. Three more banks were shut down by regulators this week.


Next week earnings reports will continue, and we await further action on the stimulus plan, and an announcement from the treasury secretary Timothy Geither on Monday, regarding the banking system. The market seems to be gaining some strength here

Big rally on Wall Street
Obama Urges Quick Action to Avoid Economic Tailspin
Economy sheds half million more jobs
Macy's cutting 7,000 jobs — 600 in Miami office
U.S. auto sales hit 27-year low
U.S. Mortgage Time Bomb Needs Defusing Yesterday
Is America Going The Way Of Japan?
Too late to avoid a depression?
Move over, subprime
A recession of biblical proportions

What uncontrolled printing of money can lead to:
Nothing to lose: how Mugabe’s banker turned Z$1,000,000,000,000 into Z$1