Stock Market Blog -Jun 12th

Another ugly week in the markets. The market dropped as the US Dollar rallied against the Euro. Bonds held up, keeping interest rates down. The $600 billion QE2 stimulus from the Fed is winding down this month, so we'll see how the market reacts. BTW, QE2 didn't work -just more money down the drain!

AAPL stock continued to drop, in spite of the much anticipated developers conference with Steve Jobs on Monday. RIMM, CSCO, and others also continued to drop.


The major indexes are all down since May 1st.; meanwhile Bonds are up...


New unemployment claims increased again to 427,000 (chart).
This week, no banks were shut down by the FDIC! (list).
Unofficial Problem Bank list over 1,000 Institutions

Next week: (Economic reports link). Don't forget Options & Futures expiration this coming Friday, a quarterly expiration cycle.

Market commentary: Looks like we may be headed down to the next support level near 1250 on the S&P 500. We are also approaching the 200MA, so we can expect at least a nice bounce when we get there.

Commodities (charts):
Oil prices are still stuck in a trading range, closing just over $99 per barrel.
Natural Gas was up, then dropped to near $4.75.
Gold dropped a bit, closing near $1528.
The 30 year Bond was up a bit, closing near $126'31.
The US Dollar was up, closing near 74.83.

Corn rallied to all time highs after a negative crop report!

News:
Dow falls below 12K; stocks drop 6 weeks straight
Investors nervous as stock market eyes correction
Yes, You Should Buy TIPS; Here's How and When
Things could get ugly as debt cloud grows
Two Clear Warning Signs From the Corporate Bond Markets
It might be time to talk double-dip recession
Meredith Whitney: State finances are worse than estimated


Investing: Why bank stocks went bust
It's time to bet against the government
The Fallacy Of the Steep Yield Curve
Second-Mortgage Misery
Why do we fear a rising China?
Exxon discovers 700 million barrels in Gulf of Mex