Stock markets sink at the close

Dow had another wild day but by comparison to many in the recent past, it wasn't all that volatile, today's range was only about 400. Out of the gate it dove more than 150 only to rise to a 200+ point gain by 2PM. Then it pulled back to waffle around break even. However there was a big sell-off in the last 15 mins taking it to a 203 point loss, at 8175, bringing to close the psychologically important 8K level. Maybe those hedge fund guys came back a little later than usual. Decliners were ahead of advancers almost 4-1 & NAZ was weaker, falling 46. NAZ is generally tech heavy & they are sensing very tough times ahead in their markets, global economy.

S&P 500 FINANCIALS INDEX slipped 7½ to 179, the Alerian MLP Index dropped 5 & the Dow Jones REIT Index was down 8 more to another yearly low. Junk some bonds actually inched up from record low levels, still offering yields of 16-20%. The VIX, Volatility Index, calmed down a bit, but after closing down 3, at 76 (after reaching 81) in the stratosphere.

Oil, as with other raw materials, settled back anticipating lower demand in a worldwide recession.

Crude Oil Dec 08

....62.15

.... 2.00 ....(3.1%)

I caught this story on Bloomberg TV about stock futures in the US may actually do more harm than good in predicting immediate stock price changes:

•`Panic' Trading in U.S. Stock Futures Overstates Declines, Rattles Europe


Thurs is the big day at the Federal Reserve when they announce the rate cut. There should be more cuts around the world as central banks are pulling out all stops trying to help banks & other financials.

Gains in the Korean market over night after a 75 point cut in their lending rate shows rate cuts can help, but only to a point. Their 7 point gain yesterday doesn't take away from the bigger picture they're down over 50% in just the last 12 months, a similar story being played out all over Asia.