Stocks return some of recent gains

After the best 3 week period in 70 years, stocks gave back gains today. Dow dropped 148, decliners over advancers 3-1 & NAZ dropped 41.


Banks led the way up & had to give back today, but not too badly as the S&P 500 FINANCIALS INDEX fell only 4:

Value 123.12

Change -4.45

% Change -3.5%

In the great run-up for the last few weeks, MLPs did best. They had a nice one week pop & then settled back to trading in the 190-200 trading range they became accustomed to early this year. MLPs remain up for 2009. REITs rose but have had a very choppy time in the last couple of weeks. 3 have given stockholders choices of accepting divs in stock or cash. This trend will extend to more. Junk bond funds gained sharply from their depressed levels as yield spreads exceeding 2000 points over the Treasury bond yield are attracting bargain hunters. I think MLPs have the prettiest chart for the last month:


Alerian MLP Index --- 1 month




Stocks are back on defense. The last 2 days of trading for Mar can see unpredictable swings as money managers try to adjust portfolios for their benefit. But stocks have returned to defense. In the middle of April, earnings reports will start coming & this dose of reality could hurt. Just today, CEOs from JP Morgan (JPM) & Bank of America (BAC), both Dow stocks, after their meeting with the president, gave very cautious comments about Mar being a bit on the sluggish side.