Stock Market Blog -Sep 11th

The market ended the week with a 300+ drop in the DOW on Friday. Lots of uncertainty with the 911 anniversary on Sunday, a G7 meeting this weekend, Europe still in financial turmoil, and people trying to analyze the President's jobs speech given on Thursday night. Investors were running to safety, buying the 10 year Treasury notes and pushing the yield under 2%  (post WWII levels), and also buying Gold.

BAC continues to be under pressure, with a corporate shakeup this week.
Likewise for YHOO, where they ousted the CEO.

New all time highs: AZO, ORLY, IEF, Gold stocks: AUY, GDX, NEM, NGD, RGLD 
Continuing to lose ground: HPQ, GS, JPM, DB, STD, UBS, HBC, BCS, CS, EFA,

 The Euro plummeted further this week, after breaking a support level on the charts at 1.40, so we could see further downside action there, and in the S&P 500, since they generally trade in the same direction.
 
The Swiss Franc also dropped after government intervention, also helping to push up the US Dollar, and further weakening the S&P 500.


New unemployment claims were up, coming in at 414,000 (chart). 
This week, another bank was shut down by the FDIC!(list).

Next week: (Economic reports link). Quarterly options expiration on Friday. Best Buy and RIMM to report earnings.

Market Commentary

Lets not forget that we are still in a bear market, so if you are buying anything, it should only be for a short bounce. The S&P500 could drop further to 'test' the previous low of Aug 8th, then maybe give us another bounce?  On the other hand, we could see a relief rally on Monday or Tuesday, which would crush all the bears! This being options expiration week, and the end of the 3rd quarter, we should see added volatility, so expect anything! And don't forget the full moon on Monday too.

To hedge your portfolio from further downside action, inverse ETFs might be appropriate, as long as you understand 1) how they work, and 2) how to hedge! (SDS, QID, etc)

This weeks charts: 
Bonds still climbing!

Commodities (charts): 
Oil prices were higher, closing around $87.24 per barrel. 
Natural Gas was slightly higher, closing near $3.92
Gold was up, then dropped, closing at $1860. 
The 30 year Bond futures were up again, closing near $140'14. Still no top... 
The US Dollar was higher, closing near 77.20, and pushing the S&P 500 down.

News: 
Dow headed below 10,000 as cyclical bear begins
Markets Seeing Nothing but Classic Bear Action
Behind the Selloff: US Is Struggling, Europe Is Worse
Deepening fears about Europe sink stocks
U.S. Stocks Drop on Greece Concern
Greek default fears return

What's in Obama's stimulus plan

Is a Bottom in for the Dollar?
Euro Falls to Six-Month Low Against the Dollar as Stark Resigns from ECB
French Banks Poised for Moody’s Downgrade
Europe Banks Valued at Post-Lehman Low