Stock Market Blog -Aug 14th

This was a huge roller coaster week in the markets as we saw 400+ point swings in the DOW. We had the US debt downgrade, the Fed meeting on Tuesday, the unemployment report on Thursday, and lingering debt issues in Europe, all contributing to the ups and downs. Banks were the hardest hit (chart below -sectors). The DOW plunged 634 points on Monday!

Bond prices were expected to drop with the US debt downgrade, but we got a rally instead!
Oil prices dropped some more this week.
Gold rallied to another all time high, hitting more than $1800 at the peak!

New all time highs this week: CF



New unemployment claims came in at 395,000 (chart).
This week, another bank was shut down by the FDIC! (list).

Next week: (Economic reports link). Volatility will continue...

Earnings reports continue to come in next week to include:
DELL, DE, HPQ, HD, LOW, WMT, TGT, ROST, TJX

Market commentary: We could get a nice bounce next week, though European financial issues could spoil the party again. I would use a bounce to start getting out of positions. Technical indicators suggest that the selling isn't over yet. Also this market looks like it could be headed lower as the year progresses.

This weeks charts:
S&P500 -the 2 year bull market from March '09 might be in trouble
DOW 25 years -can we drop back to 8000?
More 25 year charts GE CAT AAPL MSFT IBM MCD XOM
25 years of Citibank!
25 years of Bank of America
Gold hits another all time high

Commodities (charts):
Oil prices dropped, closing around $85.30 per barrel.
Natural Gas was up, closing near $4.05
Gold was up again, closing at $1742
The 30 year Bond was up again, closing near $136.93 No top yet!
The US Dollar was mostly unchanged, closing near 74.60

News:
After a wild week for stocks, what to do?
Dow finishes wild week on an up note
Treasuries shake but survive first AA+ week
Europe on the Brink: Does Their Fall Ensure Our Recession?
European regulators ban short selling
Traders Slash Bets Against Dollar by Record Amount as U.S. Treasuries Soar
Fed pledges very low interest rates for 2 years

U.S. Consumer Confidence Drops to Three-Decade Low Amid Economic Headwinds
Withdrawals From Stock Funds Biggest Since ’08
Is This a New Bear Market? The Chart That Tells The Whole Story
New Bear Market or "Healthy Correction"?
Postal Service proposing cutting 120,000 jobs
Computers rule Wall Street
Apple Overtakes Exxon Becoming World’s Most Valuable Company