Market Closer

The Dow closed 199 points down to 12828.

The big question on our mind today is (after how close will we get to 13500 on the Dow first) what is going to be the catalyst to turn the Market around to trend down?

There are a few catalyst that can step up to the plate and hit a homerun in the area.

1. Oil can do it, when the price of oil starts to effect earnings of companies other than Fedex. When you see the grocery stocks start to lose their slim margins, due to their delivery cost, might constitute enough pressure to send the Dow to the basement. level of 12500.

2. Inflation, as we saw it today, can be a driver for the downward spiral.
The consumer is being pinched right now and the bank accounts that were held in the home of the foreclosed and will-be-foreclosed are not accessible as they were in years prior. So, we are watching these numbers closely. We don't have a lot of faith in the housing plan that is being presented to President Bush currently.

3. Jobs, or the lack thereof, remain an important factor. If you watch prices rise, the residential bank account go, and employment hunting become an Olympic sport, the US economy can be crushed.

There are other factors for sure, but these 3 elements are key areas to keep an eye on.

After the bell today Hewlett Packard and may help the Tech sector see daylight tomorrow. (HPQ)

Oil finished up over $2 today to above $129 p.b..

Gold was up over $13 per ounce.


Warren Buffet, George Soros, and Meredith Whitney from Oppenheimer, are in the same boat whn it come to believing the Credit Crunch is not over. Buffet, the realist, and Soros, the skeptic met Whitney at the crossroads.

In the MarketWatch pages, Whitney is quoted as saying,

Oppenheimer warns of billions of dollars of additional asset write-downs and loan-loss reserves as a result of underwriting excesses. "We estimate that by the end of 2009, over $170 billion of reserve builds will flow through bank earnings on top of 'business as usual' loan-loss provisions," Whitney wrote. "Multitrillion dollars of loans were underwritten with the false assumption that home prices would go up in perpetuity on a national basis," the analyst said

The rest of the article can be found here>>>





Good Fortune from Trade Equity!!!



The financial sector -- which comprises 16.5% of the S&P 500 -- acted as the biggest drag with a 2.2% loss.

Market LunchBox

1:30 EST

As the Dow comes off of its low of over 200 points down on the day, the Market is showing strength in the area of energy, again. Oil is up over 2 dollars p.b., to over 129 p.b..

Gold is up today also. And so is the DBA.

If you missed it today, Boone Pickens did mention that he sees oil at 150 p.b. and he bought 10 million shares of YHOO after Icahn got in deep. Can you say, one specie of whale swimming with another specie of whale?

(HPQ) Hewlett Packard reports earnings after close today, and should give us some insight to business IT spending. Currently, HPQ is off 25 cents to $46.46 per share.

Meredith Whitney is hammering the financials again with what will probably be very realistic predictions into JP Morgan and Citigroup.

Steel looks to be taking a breather with a few companies showing a little weakness today. Depending on your portfolio, this might create an opportunity to jump in.

Good Fortune from Trade Equity!!!

PreMarket Buzz

The Dow Futures are showing down 91 to 12954, and Oil is up 73 cents to $127.78.

Home Depot reported a 66% loss in income with what we think will be 4-6 more months of increased foreclosure exposure.

China is going to relocate 12 million due further danger and disease.



Producer prices were announced this morning and the numbers showed the highest inflation in core prices in 17 years.

The dollar slipped against the euro in trading overnight.

Busy day today on the economic calendar.



Good Fortune from Trade Equity!!!