HUGE DOWN VOLUME MOVE

Todays down market produced another 90% Down Day as Down Volume was around 98.6% of total NYSE Big Board Up/Down Volume.

Traders back in force today and the result was not pretty, this brings us right back to challenge the lows in place especially if 8,000 breaks again.

Transports lost 9% of value in ONE DAY! VIX rocketed up 22%. I think SPX 800 is a KEY support area as drawn. Descending volume on the rise may have been warning as I pointed out.

Hard to dismiss away this kind of drop by saying "profit taking". It is obvious if 2 back to back 90% UP volume days did not ignite the bulls and show sellers were done.....remember after UPTICK rule was abandoned (IDIOTS) a 90% day has lost SOME of its swagger to predict.

Remember those who crowed about the 20% UP rally...... is not = to the 20% fall from the top.

EX 1000- 20% = 800 800 x120% = 960.

TO STIM OR NOT TO STIM

http://news.yahoo.com/s/nm/20081201/us_nm/us_usa_economy_stimulus richard cowan

"The House passed a $61 billion stimulus in September but opposition from Senate Republicans backed by a Bush administration veto threat killed the bill in the Senate.

Pelosi's meeting with the governors came as the National Bureau of Economic Research said the U.S. economy entered a recession in December, 2007.

U.S. unemployment has been rising, the financial industry is reeling even with the recent enactment of a $700 billion government bailout, and Congress must decide whether to rescue domestic automakers, who face a Tuesday deadline to provide Washington with restructuring plans.

Governors and state legislatures are asking Congress to act quickly on an aid and job-creation bill, noting they face severe budget shortfalls in 2009 and 2010.

At $500 billion, the measure would dwarf the $168 billion economic stimulus that was enacted last February, which consisted mostly of tax rebates for families and small business tax benefits.

The new emergency spending would add to spiraling government spending which sent the budget deficit to a record $455 billion in the fiscal year that ended September 30.

Hoping to blunt Republican criticism that Democrats are cobbling together a massive bill full of wasteful spending, Pelosi said the measure would be aimed at "creating jobs for the 21st century," with a focus on energy projects.

Obama has said that his first priority when taking office would be signing an economic stimulus bill into law."

we better hop right on that alt energy bandwagon...Oil drops 9 percent to $49 as OPEC defers cuts

THANK GOODNESS THEY FIGURED IT OUT.......

WASHINGTON (Reuters) - The U.S. economy slipped into recession in December 2007, the nation's business cycle arbiter declared on Monday, and the downturn could be the worst since World War Two.

ANOTHER DUBIOUS TITLE?

"The most important things we can do for the economy right now are to return the financial and credit markets to normal, and to continue to make progress in housing, and that's where we'll continue to focus," White House spokesman Tony Fratto said.
President George W. Bush is the first president since Richard Nixon to preside over two recessions.

WE GOT OPTIONS??

Bernanke says Fed has options as rates near zeroMonday December 1, 5:52 pm ET
By Ros Krasny
AUSTIN, Texas (Reuters) - Federal Reserve Chairman Ben Bernanke on Monday urged decisive action to protect the economy and said the central bank had alternative tools it could employ to help as interest rates approach zero.

ALERT ALERT BEN SAYS NEED LOWER RATES TO STIM GROWTH

He said the Fed could directly purchase "substantial quantities" of longer-term securities issued by the U.S. Treasury or government-sponsored agencies to lower yields and stimulate demand.

THIS ASS just doesn't get it? Tie the 2 Paulson and BEN together and you get what? a pair of old mens testicals....

HELOOOOO 10 yr Bond rate just hit LOWEST RATE EVER???!!!! yes....even below that of the great depression...

AND IF THAT DOn'T WORK.....

Bernanke also said the Fed could side-step institutions that are reluctant to lend and pump money directly into specific markets. The Fed has already done this in the market for commercial paper, short-term debt companies use to finance day-to-day operations, and last week it announced a program to push funds into markets for consumer-related debt as well.

Great, I feel MUCH better now!

Note, since I added google analytics to my site we have had hits from 30 countries......I will continue to make this a place worth coming to.

Duratek

D