Panic Plunge in the markets, making for one ugly day!!

After being selling off from the start of trading, Dow had a PANIC PLUNGE (the onlys word to describe the fall!) of 1K before buying reduced the final damage to "only" 347. All 30 Dow stocks fell! The selling was so bad that even Dow stock Coca Cola (KO) & PepsiCo(PEP), both Dividend Aristocrats, which can go up in times of extreme stress, sold off. Worries are growing rapidly that the Greek debt situation will widen to other countries bringing on another financial meltdown. The 347 loss makes for one Dow's worst days in history. Decliners were over advancers were 10-1 & NAZ dropped 82. Banks have been leading the way up this year, so they led the way down. The Financial Index is about 10% below its recent highs.


S&P 500 FINANCIALS INDEX

Value 205.69

Change -8.82

% Change -4.1%

The Alerian MLP Index plunged (that word is being used a lot today) 14½, taking it down to 282 & 11% below its recent highs only 2 weeks ago. At today's low of 260, the index was down an astounding 36 from last night's close (with a plus in front of that number, what would be a very good year in other times). On its climb up it passed 282 in late Jan. The REIT index dropped 8 to 202, almost 10% off its recent high. Junk bond funds typically dropped 10+%, an enormous drop by their standards! But Treasuries SOARED, taking the yield on the 10-year Treasury bond down 15 basis points to 3.40% (a STUNNING daily move!).


Alerian MLP Index --- 1 week




Dow Jones REIT Index -- 3 months




10-Year Treasury Yld Index - 1 month





Oil sold off big time like stocks, but gold is getting very hot & wants to take out its previous record highs over 1200.

CLM10.NYM

..Crude Oil Jun 10

..76.53

.. 3.44 ......(4.3%)

GCK10.CMX

..Gold May 10

..1,194.20

.. 19.60 ......(1.7%)

Gold Super Cycle
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The € is a the center of todays sell-off & it's down to another 14 month low at $1.26. Last year when oil was over $100, some were talking about making the € the new international currency. So much for that idea!!

There's not much to say when Dow descends 1K in a day. Much of the plunge happened in a few minutes late in the day after which bargain hunting trimmed losses. While I have been a doubter about how long this rally can last, I certainly was not expecting anything like this. Pundits will give analysis, but the truth is nobody really knows (especially the bulls) what happened. On this kind of day, high yielders were especially hard hit. They have had some of the best runs in the last year without a significant correction (many have forgotten what that word means). Tomorrow is the big jobs report for Apr. How the markets handle that report will give an idea of their inner strength.


Dow Jones Index -- 1 day




Dow Jones Index -- 3 months

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