Macy's Needs A Miracle
Dow is down 75 (down 400 from today's early morning highs), advancers ahead of decliners 2-1 while NAZ is down 52 on worries about a weak economy hurting stocks. S&P 500 FINANCIALS INDEX after the 33 point monster rally yesterday is up another 8 on the bank plan. The Alerian MLP index rose 8 bringing the gain to 40 off super lows. About every security participated in the monster rally. Even junk bond funds found buyers yesterday bringing their yields to under 20%, but today, as with other securities, enthusiasm is waning.
- U.S. to Buy Into Top Banks- CNNMoney.com
Oil is having another good day. Confidence of buyers is a good sign but implications of higher oil prices is not helpful. Gold is down 5 to 833 today.
| CLX08.NYM | Crude Oil Nov 08.... | 82.62.... |  1.43 (1.8%) |
The chart for the Dow shows the dramatic & unprecedented decline over the last couple weeks with a violent rebound yesterday (as predicted here). After such a dramatic decline, history tells us that base building is needed. Base building after this record amount of damage could take months not just a weekend.
Dow Jones Industrials -- 1 month
Among other problems are hedge funds & their influence. They have had a terrible time in the market sell-off & must have contributed with heavy selling to meet their redemptions. Even with new rules for banks, they remain an important wild card moving markets in a big way.
•Hedge Funds Concede Errors, Profess Optimism After Worst Month in 10 Years
This is the time to try to keep cool heads & digest all that has happened especially in recent days & weeks. Earnings releases may not completely dominate the news in the next few weeks, but they will be key in explaining the health of the economy.
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