Monday, June 7, 2010

Friday's selling was not over

Stocks started stronger despite selling in Asian markets. But that strength did not last, sellers took over after lunch & selling accelerated in the last hour. Dow fell 115 to 9816 (closing at its lows), decliners over advancers 5-2 & NAZ dropped 45 (2%). European bank problems, oil spill mess, high unemployment rates, that's a lot for markets to absorb! Banks led the way down as the Financial Index is flirting with its lows of the last 9 months.


% Change

The Alerian MLP Index dropped 2.82 back to the 289s. The chart shows it has held up well during recent selling, but selling pressure is taking its toll. The REIT index was down 1 to the 186s after an awful Fri. Junk bond funds inched higher. The VIX climbed 1 to the 36½, fears are on the rise. The yield on the 10-year Treasury bond dropped another 1 basis point to 3.18%. Low yields on the Treasuries spell trouble for the stock markets.

Alerian MLP Index --- YTD

Dow Jones REIT Index --- YTD


Oil is slogging along in its sideways pattern, but gold got hot. Financial worries are on the increase, prompting gold buying (1250 represents its next record price). Investors buy gold as a safety net looking for a place to put their money & are choosing gold again. A link below is provided to learn more about gold & its cycles.

CLN10.NYM..Crude Oil Jul 10..71.53 ..Up 0.02

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Gold Super Cycle!!
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CEO Steve Jobs opened Apple's (AAPL) annual conference revealing the iPhone 4, which will cost $199 or $299 in the US with a 2-year AT&T contract (depending on the capacity). The next iPhone will be sold on Jun 24 & will have a higher-resolution screen, longer battery life & thinner design. iPhone 3GS, which debuted last year, will still be available, for $99. The iPhone 4 is about 3/8 of an inch thick; the previous iPhone was nearly ½". It has a camera on the front that could be used for videoconferencing, in addition to a 5-megapixel camera & a flash on the back. It can shoot high-definition video, catching up to some other smart phones. The display on the new iPhone remains 3½" diagonally, but it can show 4 times as many pixels, the individual colored dots that make up an image, as the previous screen. The stock fell 5 to below 251 & has a chart that looks like it's topping out.

Apple's Jobs Unveils IPhone 4 to Fend Off Gains of Google's Android System

Apple --- 2 years

Goldman Sachs (GS) has been accused of stonewalling an investigation by a panel probing the causes of the financial meltdown. The Financial Crisis Inquiry Commission said it had sent GS numerous requests for information, documents & interviews, but found it necessary to issue a subpoena for documents. GS claims they have cooperated. The stock was down 3½ to the 138s & its chart looks very soggy in 2010.

Financial crisis panel subpoenas Goldman

Goldman Sachs --- 2 years

The € is just above $1.19, another new low. European financial problems are far from over. Stocks have given up & they look tired. Dow is down almost 440 in 2 days. It will need a major lift to get back to 10K & it's hard to see where that will come from.

Dow Jones Industrials --- YTD

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