Stock Market Blog -May 30th

More indecision in the markets this week as we close out the month of May. This has been the worst month of May for the DOW in 40 years! (or since 1940?) -either way, it was a bad month. The S&P 500 also took out the lows seen in February. Concerns about Europe's economy still linger, while tensions in Korea didn't help matters either.

Also making news this week is that Apple is now bigger than Microsoft in terms of market value!

All time highs this week: AAP ORLY UHS XEC


New unemployment claims fell this week, coming in at 460,000 (chart).
This week five more banks were shutdown by the FDIC! (list).

Next week: We get a number of Economic reports, along with the much anticipated monthly jobs report on Friday. JOYG and STP also report earnings next week.

Market commentary: The market tried to rally this week, but met with more selling. Next week is a short week (markets closed on Monday), with the monthly jobs report due on Friday, a potentially big market mover. Until then, the short term market direction is undecided. Longer term, it still looks like more downward pressure to come.

Commodities:
Oil prices recovered, closing around $74 per barrel.
Natural Gas was up, closing around $4.35.
Gold prices recovered, closing around $1215.
The US Dollar index was mostly unchanged, closing just over 86.
The 30 year Bond dropped, closing around $123.

News:
Dow ends worst May in 70 years
Indexes lose 8% in month
Evidence of Slower Economic Growth Piles Up
Five-star mutual funds don't live up to their past
Beware of the bubble in bonds
The Time Has Come to Short 10 Year Treasuries

Fitch downgrades Spain from AAA
Number of the Week: 75% Chance of Greek Default
Global Meltdown: Chapter Two
Treasury sells 1.5 billion Citi shares for $6.2 billion
Central banks - crisis creators
Is Gold the Next Bubble?
Apple: iPad sales top 2 million since launch
25 stock picks from 25 great investors

Stock Market Blog -May 23rd

More selling in the market this week as the indexes fell to the 'crash' level we saw two weeks ago! (this was also the early February low). A jump in unemployment claims helped send the market lower on Thursday, and some say that the passing of the Wall Street reform bill by the Senate helped send the markets lower as well.

Much of the selling was also attributed to the fall in the Euro, and concerns about Europe in general. Gold and Oil also sold off as a result, while Bonds rallied.

Dell dropped after reporting earnings.

All time highs this week: AAP AGG(bonds) FDO
All time lows: YRCW GAME

We are now approaching the $13 trillion level on the national debt clock!


New unemployment claims rose unexpectedly this week, coming in at 471,000 (chart).
This week another bank was shutdown by the FDIC! (list).

Next week : We get a number of key Economic reports . The Treasury will also auction another $113 billion in bonds.

Market commentary: The market continued to sell off this week. I think there's a good chance we'll see a bounce next week. We are at very oversold levels. Longer term, the market looks like it want to go down further, as many key stocks have already broken down below the January/February lows, and in some cases broken below the 200 day moving average. Long term investors should use the bounce as an opportunity to lighten up positions or add some protection.

Commodities:
Oil prices continued to fall, closing around $70 per barrel.
Natural Gas also fell, closing around $4.00.
Gold prices tumbled, closing around $1176.
The US Dollar index was down a bit, and closed just over 85.
The 30 year Bond rallied, closing just under $125.

News:
U.S. stocks drop into correction on global growth worries
Global stock markets correct and head for bear territory
Bonds ring economic alarm bells
Surprise jump in jobless claims
Goldman Sachs Hands Clients Losses in ‘Top Trades’
Treasury yields fall to lowest levels of 2010
Bonds ring economic alarm bells
Debt overload, and the hunt for a successor to U.S. bonds

Senate passes sweeping Wall Street reform
Core Inflation at 44-Year Low
Seven worries for Wall Street, and what's next
The Death Cross in China
More homeowners choose to default on loans
Google Now Activating 100,000 Android Devices a Day

Stock Market Blog -May 16th

On Monday the DOW rocketed up over 400 points, only to give back some of those gains on Thursday and Friday. The market was up after Europe announced a 1 trillion dollar bailout program over the weekend. Here we go again with trillion dollar bailouts!

All time highs: GLD, EGO, SLW, BIDU, DTV, OC, SY

BIDU rallied as it split 10 for 1 this week!
CSCO dropped after reporting good earnings



New unemployment claims held steady this week, coming in at 444,000 (chart).
This week four more banks were shutdown by the FDIC! (list).

Next week (Economic reports): The three remaining DOW companies will report earnings next week: HPQ, HD, and WMT. Also reporting are LOW and TGT.

Don't forget that Friday is also Options expiration day.

Market commentary: After the big sell-off a week earlier, the market recovered some of the losses early this week, but then started selling off again on Thursday & Friday. The longer term picture I believe is that the market will sell off again, perhaps to the February lows. With options expiration this week, and a high put-call ratio on the indexes, I expect the market to hold up or even rally this week.

Commodities:
Oil prices continued to fall, closing just under $72 per barrel. If the dollar rally continues, expect even lower oil prices.
Natural Gas was up, closing around $4.30.
Gold prices rallied to an all time high, closing around $1227.
The US Dollar index was up again, and closed just over 86.
The 30 year Bond was up late in the week, closing around $122.

News:
Stocks: $2.9 trillion on the sidelines
How Four Banks Scored a Perfect Trading Quarter
Déjà Vu All Over Again as China Hit by Second Bear Market in 12 Months
Gold Spikes To All Time Highs Amid Massive Printing Of Currencies And Worry
Gold's 'ugly sister' gets a second look
Gold Heats Up As Athens Burns
The second debt storm
Fannie Mae: Where the Bankrupt Only Get More Bankrupt
Android Finally Takes a Bite Out of the iPhone's Market Share
Food-stamp tally nears 40 million, sets record

Stock Market Blog -May 9th

This week, in 5 days, we gave back most of the gains from that huge 3 month rally that began after the January sell-off. This looks like the beginning of another sell-off. Programmed computer trades sent the market into a deep, momentary dive on Thursday, only to recover a good portion of the drop within minutes. If you blinked, you missed it! (see chart below) Most of the anxiety was blamed on the Greece & European crisis; the Euro currency also tanked, causing the US dollar to spike up.

The monthly unemployment report showed 290,000 jobs added in April, and the unemployment rate rising to 9.9%.

All time highs: In spite of the huge drop in the market this week, EGO managed to hit a new all time high. This is one of the best gold mining stocks.

Gold closed over $1200 per ounce in spite of the dollar rally, while Oil prices tanked!


New unemployment claims declined again this week, coming in at 444,000 (chart).
This week four more banks were shutdown by the FDIC! (list).

Next week: We get more economic reports, and more earnings reports.

Market commentary: We finally got the correction so many traders were looking for, though I think it took everyone by surprise. After the huge sell-off last week, I expect we will see a relief rally, then eventually a resumption of the sell-off taking the major indexes in negative territory for the year.

Also, after the recent spike in Bonds, 'traders' might benefit from a brief pullback this week (the TBT is a good ETF for shorting bonds).

Commodities:
Oil prices tanked, closing around $75 per barrel.
Natural Gas still hovering around $4.00.
Gold prices rallied again, closing around $1210.
The US Dollar index spiked up, and closed near 85.
The 30 year Bond spiked up, closing just over $123.

News:
U.S. stocks fall for session, week as debt concerns gain
The 1,000-point plunge
The Day There Were No Bids
BOJ Pumps 2 Trillion Yen Into System on Greek Crisis
Currency, Treasury volume reached records
Junk Bond Sales Set Record as Investors Waver

April Jobs report: Best gain in four years
U.S. dollar sees best weekly gain since October 2008
Gold prices end at five-month high; silver jumps 5%
Freddie Mac Seeks Billions More After Big Loss
Greece takes $146 billion bailout
A death sentence for your retirement savings

Stock Market Blog -May 2nd

This week we saw the market take a dip, maybe on the Greece concerns, and the ongoing Goldman Sachs saga, or maybe the 'technicals' finally kicked in!


BIDU hit an all time high this week after reporting earnings (up $90 on Thursday!), while Blackrock (BLK) sold off, along with Goldman Sachs and other financials.

Gold & Silver mining stocks are moving up nicely.

New unemployment claims declined this week, coming in at 448,000 (chart).
This week seven more banks were shutdown by the FDIC! (list).

Next week: We get more economic reports, and more earnings reports.

Earnings reports next week:

Mon	Tue	Wed	Thu	Fri
DNDN,APC,CHK	ADM,DUK,EOG MRO,MA,PFE TEVA,VNO,IPI,MRK	AGU,DVN,RIG LVS,YUM,VALE	EP,	CEP

Market commentary: The rally faltered last week. We could see more of the same next week, and maybe get a better feel for whether the next trend will be up or down. Based on the high volume down moves we've seen recently, and the huge rally since early February, we could be looking at a new down leg.

Commodities:
Oil prices were up, closing around $86 per barrel.
Natural Gas tumbled to close just under $4.00.
Gold prices were up again, closing around $1180.
The US Dollar index was up a bit, and closed near 82.
The 30 year Bond was up, closing just under $118.

News:
Stocks Tumble In Mixed Trade
Dow starts new downward wave
Baidu's Stock Attracts $1,000 Price Target With Help From Google
China's Baidu announces 10 for one ADS split
Home Sales Pick Up at a Halting Pace
Now It's a European Banking Crisis
Europeans Fear Greek Debt Crisis Will Spread
FDA OKs Dendreon's prostate cancer vaccine
Forget Goldman. Buy gold, man?