The stock market entered the day on a two day win streak but the price action was ugly from the opening bell.
Caution in front of the vote for the bailout package, substantial losses in overseas markets and speculation that credit conditions continue to tighten weighed heavily this morning. The initial vote to pass the bailout failed which led to a more than 400 point drop in the Dow in a matter of just 10 minutes.
The market indices bounced off their worst levels but drifted sideways within a broad range not far from the lows over the next 45 minutes before giving way to renewed selling pressure in late trade.
A limited bounce was noted over the last half hour but last minute declines and adjustments left the S&P 500 (-106.85) and the Dow (-777.68) with their largest one day point loss in history (S&P #7 percentage loss list).
The worst performing sectors were led Bank -19% Steel -16% Coal -16% Broker -13%, Insurance -12.8%, Mining -12.5%, Natural Gas -12%, Oil Service -11.5%, Oil -11.3%, Disk Drive -10.5%, Casino -10%, Internet -9.7%, Media l-9.2%, Computer-Hardware -9%, Software -8.6% Airline -8.5%, Networking -7.8%, Paper -7.4%, Semi -7.2%. Little was higher other than Gold GLD +3.1% and safe haven U.S. Treasuries.
Comments by Mario Marciano - Head Trader at SMF
We will see what the markets does and once the key levels of the indexes are broken. Look to see if the sellers really hit it once the key levels are broken on the Dow and other indexes.
I have said we will see 9,500 on the Dow and trader Mario Marciano told everyone a year ago 10,500 was the level we were going to and that was before the trading year even started!
How right we were at www.StockMarketFunding.com
and the S&P 500 is down to the levels of 1,065 as Mario Marciano clearly stated in December 2007 that we would go to those levels and the markets would see things never before and markets and it would make history! Sure enough they have done all that and a lot more.
As Mario Marciano has also clearly stated back in early 2007 that we would see things in the markets that only come once every 100 years how true that was and not only that www.StockMarketFunding.com
is telling new people there will be opportunities that come our way we also have never seen before and once we clear out the dead wood of the financial system then our recovery will come and New Traders at SMF and Investors will get the opportunity of a life time.
SMF educates new traders and investors worldwide with 12 month comprehensive live training in the daily markets so that people can be guided and learn all the aspects of the markets as SMF funds traders and investors to move forward with the trading capital needed to participate in the everyday markets. New traders have hope at SMF there dreams and goals of learning how to trade and invest can come true with hard work.
Everyone wants a deal...do they? Well that is ok, what about the earnings going forward?
Everyone is so caught up in the deal that they are forgetting what a publicly traded company is worth these days so once again we will deal with the hype of these fools who are not looking at the full deal once we do get a deal then what.
What about unemployment, what about earnings, were and what and how is the questions people need to ask themselves and the next uncertainty that will hit the markets are EARNINGS how they manipulate them going forward to play out the nice role of exuberant that will come in that order.
It's funny how people can destroy our systems by cheating and lying everyday to the American public. Now they want to start all over again with fancy deals that will take away all the problems in the world over night no I don’t think so traders.
Mario
www.StockMarketFunding.com says credit market disruption has had underappreciated consequences on the economy.
A virtual suction of liquidity has occurred in the credit and lending markets, and consumer and corporate credit is already showing the effects.
SMF says what started last summer has accelerated and intensified so much so that they believe any government bailout plan has little hope of improving core fundamentals over the near and medium term.
SMF says their revised estimates are 50% below consensus for FY2008 and 90% below consensus for FY2009. SMF has lowered their ests for Banc of America (BAC), Citigroup (C), J.P Morgan (JPM), Wachovia (WB), and Wells Fargo (WFC).
SMF BULLITEN: as Mario Marciano has said in the last several months we have to wait it out and once there ready we can get into the sector however for the shorter term SMF TRADERS and LONGER TERM INVESTORS will be waiting for the opportunity.
SMF has clearly stated over the last 2 years when Mario Marciano called a six year top in the financial markets and started shorting back in late 2006 using long term options going out as far as 39 months since that date to capture all the downside.
The powerful part of investing at SMF is to show new traders and investors how to use longer term positions to establish growth rather that be up or down
SMF is taken down estimates this earnings season so traders at SMF can capture downside moves on stocks that are going to fall due to estimates having to come down in lots of various sectors during that time period as Mario Marciano has clearly stated great buying opportunities come at lower growth rates at the bottom to the backside up in growth.
Bear markets and slowing economies around the world have to through there adjustments and reflect the slowing growth cycles around the world.
Retail sector this earnings season, the Christmas season can be very Grinch type this year as growth is affected when consumers are not spending as much as they did in prior years. At SMF we are looking for downside revisions in the retail sectors this year.
As the financial sectors have been slammed down the next to follow is our wonderful retail sales and consumer credit remains an issue for most Americans due to falling housing prices, high inflation during the first half of 2008.