Thursday, June 26, 2008

Stocks tumble after Federal Reserve meeting

Stocks tumbled badly after the FED's meeting yesterday. Dow is down 180 (trying to test yearly lows), decliners over advancers 3-1 & NAZ is down 51. Times are tough! The FED issued a statement that didn't say much because there wasn't much to say, after all they're trying to juggling many balls at once. They did signal rate cuts are finished, so the main question is when do rate hikes start? Banks have a ton of problems. Goldman Sachs gave a very ugly assessment for Citigroup (C), a Dow stock, pushing C down 1. In sympathy all banks are getting hammered with Bank of America (BAC), another Dow stock, yielding over 10%! Some of the leading new lows today are: C, F, BAC, GM, WM, AIG, AXP, BA, MMM, LLY & UPS (not a lot of wimps in this list, many are in the Dow). The Alerian MLP index is down 3.38 to 283. Looks like it may be going after the Mar low.

Oil is back up, pushing 139 in it's confusing world. The longer it remains above 130, the uglier its news will be. This is a time for a stiff upper lip, use the time to study for good buying opportunities.

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