Dow sinks to new lows

The last 2 weeks has been highlighted by post stimulus plans involving massive amounts of money. Markets have given these announcements a solid thumbs down rating. Below the fall of the Dow is shown, over 10% in just the last 2 weeks, & is compared with the decline for the Alerian MLP Index, which has been strong in 2009. Not any more. MLPs (shown in the solid line) tracked the fall for the Dow in the last 2 weeks. YTD, Dow is down 1700 or 20% vs the MLP which is up 20 to 190 (or up 2 if the starting point is after the first day's enormous rally).


DJI vs Alerian MLP Index -- 2 weeks




Bleak is the operative word for the markets. Dow had been trading sideways for 4 months with an 8K floor. That floor was crashed thru & now Dow is struggling to hold above the 7K floor. Dow is also down 50% from it's peak in Oct 07, a very grim background.

Div cuts are adding to the misery in the markets. On Fri, General Electric (GE), a high profile Dividend Aristocrat, cut their div after many assurances about maintaining it. They are hanging on for dear life fighting to maintain their coveted AAA credit rating (only a handful literally remain).

Waiting for mommy

Misty was waiting for mommy (mommy returned shortly). The public is waiting for gov help. Markets are also waiting. Meanwhile, they're on defense & Dow is being tested at 7K.