Weak markets after Federal Reserve meeting

Stocks continued soft after late day selling was followed by down markets overseas. The Dow is down 44, decliners over advancers almost 4-1 & NAZ fell 25. Banks continue weak after their big drop following the Federal Reserve meeting yesterday.


S&P 500 FINANCIALS INDEX

Value 200.59

Change -1.73

% Change -0.9%

MLPs have had tough sledding, especially after a stellar 5 month run. The 250 ceiling held for the Alerian MLP index 2 months ago & remains formidable despite major advances for other averages (i.e. the REIT Index & the Dow Jones charts shown below). Today, the MLP index dropped almost 3 to 247. The REIT index is off 4½ (probably from being so overbought). Junk bond funds slipped off their yearly highs. Treasuries rallied, the yield on the 10-year Treasury bond fell 5 basis points to 3.37%, the low end off its range in recent months.


Alerian MLP Index --- 3 months




Dow Jones REIT Index --- 3 months




10-Year Treasury Yld Index - 3 months





Oil is down sharply again although gold is only off a few dollars (still above the important 1K floor). The chart shows the trend for oil prices over the last 6 months & oil has fallen to the low end of its 4 month range.

CLX09.NYM

...Crude Oil Nov 09

...66.12

... 2.85 .......(4.1%)

OIL (ETF) --- 6 months





There is more data showing housing is still sloshing around in the dumps, no great surprise. The FED said that the return to growth in the US is not sufficient for it to abandon its stimulus efforts. Those thoughts are good & bad. They will continue to buy Treasuries, mortgages & supply cheap financing for banks. But the problem is the reason for a lack of change is US economic growth will be weak, something for optimistic markets to think about. The chart below shows terrible Sep has been a pretty good month for the Dow, giving the Dow its 2nd outstanding qtr. But Oct comes next week.

Dow Jones Industrials --- 3 months