Friday, June 20, 2008

Witches sink stocks

Quadruple witching was too much for the markets. Dow tumbled 220, decliners over advancers 5-2 while NAZ pulled back 56. Dow is solidly below 12K, next step is testing the lows from a few months ago. S&P500 at 1317 is nearing the magic 1270 support line. Both of these may be visited next week. Volume was a little stronger at 1½B. gives a slightly different number than Yahoo for new lows, they're showing 173 new lows vs 36 new highs on NYSE. Banks are still struggling to cope with negative comments yesterday, pulled back. REITs & just about everything else was weak. The Alerian MLP index pulled back 1 to 285, another index that may have to test lows from earlier this year. Oil settled up 2.69 to 134.62 on more supply worries, what's new?

Ford warned about soft sales for cars, no surprise. Moody's cut the outlook for their ratings to negative. Merrill Lynch after issuing the negative forecast about banks yesterday fell 1.74 on fears they may have to take more write-offs relating to bad loans they have. Reuters has a story about bank analysts cutting forecasts for bank earnings. It looks like the witches carried the day today. Next week, markets will be starting on defense!

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