In first real day of new year, stocks lower

Stocks recovered from their early loses (Dow had been down 100+), Dow was down 48, but advancers over decliner 3-2 and NAZ slipped 8.

The big news is the Alerian MLP Index roared ahead another 6½ to 195 (26 point gain in less than 3 days). The major support relates to Lehman High Yield Bond ETF rising over 1% & the VIX dropped almost one. High yields are attracting investors as fears ease. However while the VIX is settling back from astronomical levels a few months ago, it still remains VERY high. The chart shows how dramatically the VIX has pulled back in the last few weeks. The 38s are high territory but 20 used to be the dividing line for high anxiety.


VIX ----- 6 months





Also of help for the MLPs is the rise in oil on fears about the Mid East conflict and Russia-Georgia (rest of Europe) supply (possible) problems:

CLG09.NYM

...Crude Oil Feb 09

....47.04

... 0.70 .......(1.5%)

Later today auto sales figures for Dec should be announced. The monthly unemployment numbers will come on Fri & they are expected to be dreadful, maybe 6.9%. The senate is trying to get squared away so they can deal with the stimulus package. This is considered the first day of the first week of the new year (for those who believe that the first 5 days performance predicts the full year performance).

I just had a root canal, so far so good.