David Waring

Video Technical Overview:

Good overview of today's action as well as levels to watch going forward from Brian Shannon over at Alphatrends.net.


Fundamental Overview

Bloomberg: U.S. Stocks Plunge, Sending S&P to Lowest Level Since 1997 - The S&P 500 slid 6.7 percent to 752.44, under the low of 776.76 reached during the bear market in 2002, The Dow Jones Industrial Average sank 444.99 points, or 5.6 percent, to 7,552.29 and the Nasdaq Composite decreased 5.1 percent to 1,316.12 after economic reports depicted a deepening recession and lawmakers postponed a vote on a plan to salvage the auto industry.

More Top Stories:

Bloomberg: Fannie, Freddie Will Suspend Foreclosures Through Jan. 9 to Help Borrowers

Bloomberg:VIX Surges to a Record Close as Options Traders Bet on Citigroup Losses

CNNMoney: Auto bailout: Not now, maybe later

CNNMoney: Big banks get crushed

Marketwatch: Saudi prince's buy doesn't help Citi; shares down 26%

Marketwatch: High-yielding currencies under pressure - Sterling dropped 0.9% to $1.4815, and the Australian dollar lost 3.6% to 61.30 cents as investors fretted about declining stock markets and an unraveling world economy.

CNNMoney: Oil sinks below $50 - On the final day of trading for the December contract, U.S. crude futures fell $4 to settle at $49.62 a barrel as growing concern about the economy pointed to weak demand for energy. The price marked the lowest level in three-and-a-half years.

Marketwatch: Gold rises as weak economy spurs safety buying - Gold for December delivery rose $12.70, or 1.7%, to end at $748.70 an ounce, as gloomy economic news and falling crude-oil prices stepped up investors' interest in safe-haven buying.

Chart of the Day:

I am going with a monthly chart of the S&P 500 Index today where as you can see we have taken out the lows from 02. It seems however that although there are not many talking about it there is one last line of defense here which is the long term rising trendline going all the way back to 1982.

S&P Monthly

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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.

MikeG

Hi David - my second post.
I'm a new and badly beaten trader - mostly of my own doing, not the market's.

Apart from the sub-prime disaster, bad govt fiscal policy/overspending, guys like Cramer blames huge hedge funds for targeting and destroying companies. Leaving any moral issues out of it, why isn't everyone in hedge funds??? Are "they" making a killing in this market, while LAYING WASTE to it?

It just seems that good stocks can't go anywhere because of short selling and hedge funds. Is this a "if you can't beat 'em, join 'em" scenario?

naively,
Mike