Markets tried & tried & tried

By any indicator markets are greatly oversold, but they still could come up with a winner. Dow fell 37, decliners over advancers almost 2-1 & NAZ was down small change.

S&P 500 FINANCIALS INDEX dropped again to another new low:

Value 92.76

Change -1.48

% Change -1.6%

The Alerian MLP got clobbered again, down 20 points (10%) in 2 days. In a similar fashion, REITs & junk bonds have sold off badly in the last couple of days. But the VIX has been flattish around 50.


After yesterday's big fall, oil managed a recovery rally but gold continues backing off from its recent 1K price.

CLJ09.NYM

..Crude Oil Apr 09

..41.56

.. 1.41 ......(3.5%)

ZGH09.CBT

Gold 100 oz. Mar 09

..911.80

. 27.20 .....(2.9%)

Auto sales for Feb are in & they were dreadful. With a worsening recession, it's getting harder & harder to justify throwing more money at an industry with no hope. Toyota was the best of the bunch, sales plunged "only" 40%.

GM, Ford, Toyota Sales Plunge as Slump Continues- AP


The Federal Reserve has more than its share of frustration. It looks like AIG was the last to figure out (or care) they were in enormous trouble, very difficult for FED officials to deal with when they were trying to save this monster. And the need to keep bailing out AIG is not over.

•AIG's Bailout Made Bernanke `More Angry' Than Any Other Episode in Crisis


Kinder Morgan is the largest & one of the best financed MLPs, but it looks like major selling is reaching them. Below is the 6 month chart for Kinder Morgan Management (KMR), the stock equivalent of the MLP units. Sep 08, markets, including MLPs, ran into a buzz saw. But Kinder Morgan was punished less badly than most other MLPs. In the last 2 days, KMR (& KMP) dropped 5 points. There are no new announcements behind the selling. My guess is there may be a stronger linkage between MLPs & other high yield securities (REITs & junk bonds). In this throw the baby out with the bathwater environment, they may be caught up in the hysteria of let's look for more babies to throw out. For what it's worth, 5 days ago Jim Cramer reaffirmed he's still a fan of Kinder Morgan.


Kinder Morgan (KMR) --- 6 months





Dow is down 2K this year & it closed at 2008 not far from it's yearly low.


Dow Jones Industrials --- YTD