Nerves are calmed, stocks pare morning losses

Stocks climbed back after digging a very big hole at the opening. Dow closed down only 22, decliners ahead of advancers 2-1 (a lot better than earlier) & NAZ was off a modest 2 (be generous & call it even). Rebounding bank stocks were able to take the Financial Index into the black, bouncing off the 186 lows (Feb bottom).

S&P 500 FINANCIALS INDEX

Value 194.398

Change 1.61

% Change 0.8%

The Alerian MLP Index fought its way back from the depths (down 9) to close at off only ½ in the 279s. The REIT index was able to climb out its hole, ending with a gain of 1½ to 192. Junk bond funds were also able to pare deep AM losses (typically over 5%) to only small losses or even tiny gains. Treasuries are still in great demand. The yield on the 10-year Treasury bond dropped another 9 basis points to 3.16%. The last time yields were this low was 1 year ago & now the overhang of endless annual $1T deficits is more vivid that it was than! The VIX, volatility index, has had unusually wild 2 days (shown below). Today it was down 3 to 35 & down about 7 in 2 days! Maybe fears are easing, at least for the time being.

Alerian MLP Index --- 1 month




Dow Jones REIT Index -- 1 month




10-Year Treasury Yld Index - 2 years




VIX --- 2 days






Oil found buyers at 68 & was able to bounce back a dollar to 69. Gold also found buyers, able to take it closer to 1200. The chart below for GLD below shows how well gold held up in very difficult times.

Oil	...68.98	__-1.23	__-1.8%
Gold	...1,199.50	__5.50	__0.5%

Gold Super Cycle
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GLD (ETF) --- 2 months






4 of the biggest companies are compared below over the last month. Exxon Mobil (XOM) & Wal-Mart (WMT) are Dow stocks & Dividend Aristocrats. Apple (AAPL) is one of the hottest stocks in the last couple of years while Citigroup (C) is a has-been & the gov is trying to sell some its vast holdings at a profit (above $3¼). Damage has been wide spread which says a lot about the global economic recovery.


Exxon Mobil --- 1 month




Wal-Mart --- 1 month




Apple --- 1 month




Citigroup --- 1 month






Stock markets were able to rebound, very impressive. But not sure what to make of it with the markets being extremely oversold. Dow held above 10K, an important support line, but the S&P 500 at 1074 is still well below 1100, considered another important support line. The market breadth (2-1 in favor of decliners) is disturbing. Maybe that's not so bad considering it was above 11-1 in the AM. The € is $1.23½, very dreary. More gov officials are showing up in the Gulf region to see what they can do in what is now better understood as a huge disaster. Volatile times are ahead with a bias to the downside in these shaky markets.


Dow Jones Industrials -- 1 month




S&P 500 --- 1 month

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