Markets advance on low volume

In the absence of major news stories, Dow rose 184 (picking up 100 points in the last hour), advancers over decliners 4-1 & NAZ gained 40. All this was on very light volume in holiday trading. The best reasoning they could attriubute to the gains was the new financing for GMAC, one set of worries has diminished.

The averages did well. Lehman High Yield Bond ETF (JNK) rebounded 24¢ after yesterday's decline. From mid Dec, it shot up from 27 to 31 reducing it's yield to only 14%. Other high yield (junk) bond funds have had more dramatic moves from very, very depressed prices. Banks also had a good day, S&P 500 FINANCIALS INDEX popped 6½ to 164. The Alerian MLP Index & Dow Jones REIT Index gained while VIX, volatility index, pulled back to 42.

Oil fell, it couldn't hold 40. Recession worries outweighed Middle East fighting.

CLG09.NYM

..Crude Oil Feb 09

...39.31

... 0.71 .......(1.8%)

The S&P 500 was trying for the worst year in its history. However after today's gain of 21, the YTD loss was trimmed to "only" 39%. This year could come in 2nd place, behind 1931.

12/31/07......1468
12/30/08.......890


S&P 500 ---- 1 year





Today's low volume (under 1M on NYSE) was the biggest story. Tomorrow anything is possible on the last day of 2008.