The Dow was down 148 points for the day on Friday and 776 since the start of the year. Which is down 8.84%. Volume has been declining over the last 11 days. The Dow on Wednesday tested the middle Bollinger Band and has declined since. The CCI has turned away from the 0 line and is head lower. The fast line just crossed down through the slow on on stochastics. Looking ahead, if the Dow closes below 8000, we could be looking at testing the November lows.

Here are some Short ETF's to consider:
NAZ, QID, RWM, SDS, SH, DUG, TBT, TXT, DOG, TWM, SRS

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May We All Make More $$$ Faster

Likesmoney


http://likesmoney.comxa.com/

Yap, the financial crisis keep getting worse. Here's a stock you can watch for Monday ARTG.

Any prediction on how dow will perform next week?

Actually I already bought this stock on Friday. I setup a stop loss, so if the trend starts to reverse, I will sell it, otherwise I will sell it on either Tuesday or Wednesday. I normally hold 3-4 days of each stock. Yap, it is bearish base on candlestick.

vivian,

I keep that list of stocks on a separate watch list. Based on how the Dow's chart looked on Friday and on the Weekly chart for the Dow, things were looking bearish. Of course, things could reverse quickly if the 'bad bank' option being discussed in Washington moves forward this week. It would be wise to use tight stops.

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May We All Make More $$$ Faster

Likesmoney


http://likesmoney.comxa.com/

I also bought some ARTG on Friday. I think the doji that was formed on Friday was due to the fact that dow dropped over 100 that day. It rose a little over 4% today with low volume. I will probably sell it tomorrow or the day after.

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Part time trader

US is in major recession for another year.

Do Markets Really Think Stimulus Plan Will Work?
TOPICS:Employment | Recession | Stock Market
COMPANIES:Kinder Morgan Energy Partners, L.P. | XTO Energy Inc | Chevron Corp | JPMorgan Chase and Co | Citigroup Inc
By: Jeff Cox, CNBC.com | 06 Feb 2009 | 02:52 PM ET Text Size
Despite hopes that the latest dismal jobs report would force a stimulus plan into action, deep pessimism remained over whether Washington could do anything to fix the economy.


CNBC.com

As news that the labor market had shed 598,000 jobs in January confirmed that the economy is in rough shape, market psychology looked on the bright side and pushed the indexes higher on optimism for an aggressive government stimulus plan.

But skepticism abounded as to whether the rally could be sustained.

"This is a classic case of the market taking this dismal number in hopes that Washington will be motivated to do more," says Michael D. Kresh, president of M.D. Kresh Financial Services in Islandia, N.Y. "It's becoming very clear that something has to be done now. We really are reacting to external influences, not to the market seeing through to a better future."

Market veterans have seen this before.

A series of stimulative measures in 2008—including the Troubled Asset Relief Program and aggressive Federal Reserve rate cuts—led to temporary buy-the-rumor and sell-the-news market rallies.

Following that thinking, Kresh says he's continuing to use stock surges as selling opportunities.

He's staying away from banks, despite a strong pop in Friday trading, though he's nibbling at other sectors when the market moves lower.

At the same time, some market bears are holding short positions, while one fund manager says he's continuing his strategy of dumping stock-based funds until there's more clarity in when a turnaround might happen. Gold has become an increasingly popular shelter from the storm, while energy stocks are getting a mild push on hopes that the oil market may have found its bottom even as the stock market looks for its own capitulation point.

"There's an underlying pessimism and a lack of consumer confidence. It's going to take a lot to bring this thing around," says Vern Hayden, president and mutual fund manager of Hayden Wealth Management, in Westport, Conn. "A sinking economy, soaring unemployment and a shattered financial industry--you don't overcome those things overnight, even with government bailouts. I'm not sure the government can bail it out."



Indeed, the verdict was far from unanimous on what the employment weakness and the subsequent stimulus and bank rescue plans ultimately will mean to the economy and the stock market.

The market is closely watching for details next week on the good bank-bad bank plan to get toxic assets from banks' books, as well as the stimulus plan and its grab bag of various capital improvement projects and capital injections.

Some think the market is overdue for another leg up in a bear market rally that started after the November lows. Talk of that rally grew Friday after the jobs report and the ensuing anticipation of government action.

"There is a massive bear market rally building somewhere out there," Art Cashin, director of floor operations at UBS, said on CNBC. "And I think it may occur shortly, before St. Patrick's Day." See Cashin's full commentary in video.

Disciples of that school of thought piled into financial shares Friday, sending previously battered Dow components Bank of America [BAC 6.13 1.29 (+26.65%) ], Citigroup [C 3.91 0.38 (+10.74%) ] and JPMorgan Chase [JPM 27.63 3.09 (+12.59%) ] sharply higher. The SPDR Financial Select Sector [XLF 9.79 0.68 (+7.46%) ] exchange-traded fund was up more than 5 percent during the rally.

Energy, Gold and Quick Feet

But the enthusiasm for stocks that seem to have little upside other than a government rescue left some market advisers queasy.

"The major banks have not come close to solving their troubles and I certainly would be staying away from financials until we see some clarity and see some real transparency in their assets," Kresh says. "People moving in here and playing this momentum gain are playing it at a very, very high risk. There may be a reward, but as I see it the risks are way, way out of balance."

For Investors

Four Growth Stocks for the Recession
Chinese Stocks Have Bottomed: Investor
A Boom Sector--in Retail?
Investing Picks and Pans
"I think the market is deluding itself," adds John Jacquemin, founder and principal at Mooring Intrepid Opportunity Fund, in Vienna, Va., where he managers hedge funds. "As the market goes up on this bad news that means that markets are anticipating that a recovery is near. I don't believe it. Frankly (the recession is) much too deep to go into recovery in three to six months."

Jacquemin is holding all short positions for the institutional funds he manages and will continue to do so until the housing market shows sure signs of a turnaround, regardless of any bear rallies that come along.


RELATED LINKS
Market to Test Bottom
Reasons to Buy Stocks
Nearly 600,000 Jobs Lost
Obama: Pass Stimulus Now
Immelt, Volcker on Econ Panel
Life After Wall Street Layoffs
Economy Needs "Shock and Awe": El-Erian
Blog: Buying the Bailout Rumor
"We are gearing our investments for a recovery sometime down the road, at least a year or perhaps two years," he says. "We start with a macro view and we stick to that view, and we are looking for segments we think are going to be the weakest. Until that changes we don't really worry about bear market rallies."

Jacquemin finds particular weakness in financials, housing and credit card companies, which will continue to be plagued by defaults as employment and the broader economy weaken.

For his funds, Hayden is nearly completely out of equities, except for an energy fund he participates in through T. Rowe Price that holds Chevron [CVX 74.90 1.65 (+2.25%) ], Kinder Morgan Energy Partners [KMP 49.70 -0.25 (-0.5%) ], and the XTO Energy [XTO 39.34 0.74 (+1.92%) ] ETF as a 5 percent energy component for his portfolio.

Also on CNBC.com

Vintage Recession: Bailout Wine and Better Grapes
Resume With Cocktails on Wall Street
He's also holding a 5 percent gold component through the SPDR Gold Trust [GLD 89.59 -0.53 (-0.59%) ] ETF and First Eagle Gold Fund [SGGDX 20.12 0.31 (+1.56%) ].

Overall, he's stressing flexibility and a quick recognition for what's working and what isn't in this rapidly changing and fickle market.

"Every portfolio needs an offense and a defense," Hayden says. "I'm not a buy-and-hold guy. Buy and hold, especially in this kind of environment, is a suicide mission."

© 2009 CNBC.com

http://www.cnbc.com/id/29053627

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http://likesmoney.comxa.com/

World markets fall as Japan's recession deepens
European, most Asian stock markets fall as Japan sinks deeper into recession

Louise Watt, Associated Press Writer
Monday February 16, 2009, 12:49 pm EST
Yahoo! Buzz Print
Related: Lloyds Banking Group plc
LONDON (AP) -- World stock markets fell Monday, after new figures showed Japan's economy contracted at its quickest pace in 35 years and a weekend summit of Group of Seven finance ministers provided few concrete proposals to counter the economic crisis.

Related Quotes
Symbol Price Change
LYG 3.80 -1.53

Drops in Europe followed losses in Asia, but trading volumes were subdued as U.S. markets remained closed for Presidents Day.

Britain's FTSE 100 closed down 1.3 percent at 4,134.75, Germany's DAX sank 1.1 percent to 4,366.64, and France's CAC 40 dropped 1.2 percent to 2,962.22.

Japan's worse-than-expected fourth quarter GDP numbers were a sobering reminder of the toll the worst economic downturn in decades is having on Asia's export-driven economies. The world's second-biggest economy shrank 3.3 percent from the previous quarter, or at an annual pace of 12.7 percent.

In Europe, financial stocks dragged markets lower. Shares in Lloyds Banking Group were volatile in London following the company's revelation Friday of larger-than-expected losses at recently acquired Halifax-Bank of Scotland and on market fears the combined company may be headed for nationalization. Shares dropped 20 percent in early trading, but regained ground to close down 8.1 percent. Shares had dropped 30 percent on Friday.

Insurance companies also dragged the FTSE 100 down. Legal & General Group Plc fell 10.5 percent, Prudential lost 8 percent and Aviva slipped 7 percent.

"Whereas before people were just selling banks, now they are looking at the risk involved with other financials," said Jane Coffey, head of equities at Royal London Asset Management.

Investors seemed disappointed after finance chiefs from the Group of Seven developed countries finished their meeting in Rome with pledges to work together to boost growth and unemployment, but stopped short of concrete measures.

Increasingly, investors are unconvinced world governments are acting quickly enough to counter the economic crisis, analysts said.

"The global recession is deeper than anticipated. At the same time policy makers are failing to deliver measures to address the problems," said Dariusz Kowalczyk, chief investment strategist for SJS Markets in Hong Kong. "It seems that what they're doing is too little too late."

In Asia, Japan's Nikkei 225 stock average edged down 0.4 percent to 7,750.17, and Hong Kong's Hang Seng Index dropped 0.7 percent to 13,455.88. South Korea's Kospi lost 1.4 percent.

India's benchmark tumbled 3.6 percent after the government, proposing its interim budget, offered no new stimulus measures. Markets in Australia and Singapore also retreated.

In Japan, several exporters were hurt by the data showing the economy sank deeper into recession.

The GDP figures represent the steepest drop for Japan since the oil shock of 1974 and outpaced output drops in the U.S. and the euro zone. A survey of economists by Kyodo news agency had projected an 11.6 percent annualized contraction.

"It's clearly very shocking data," said Clive McDonnell, head of Asia strategy at BNP Paribas Securities in Hong Kong. "The drop is certainly beyond our own quite negative expectations. (Japan's) policy response has not been as effective."

Bucking the wider trend, Shanghai's benchmark climbed 3 percent to 5 1/2-month high to extend China's recent really.

Since the start of the year, Shanghai's index has risen more than 31 percent. But analysts say the rise has been driven not by economic fundamentals, but by a surge in bank lending that has sent money flowing into the market.

"The economic fundamentals are not strong enough to support the market's rise," said Zhang Xiang, an analyst for Guodu Securities in Beijing. "The market is in an irrational state, which is not going to last long."

U.S. equity markets are closed Monday for Presidents Day. On Friday, the Dow fell 1 percent to 7,850.41, its lowest close since Nov. 20. The S&P also fell 1 percent, ending its week off 4.8 percent.

In the coming days, investors will be watching President Barack Obama, expected to sign the country's $787 billion economic stimulus measure on Tuesday. He plans to outline steps to stem home foreclosures on Wednesday, though analysts say investor enthusiasm surrounding the pending announcement is fairly low.

Oil prices, which jumped 10 percent last week, traded 47 cents lower at $37.04 for a barrel of light, sweet crude for March delivery. The contract rose $3.53 to settle at $37.51 a barrel on the New York Mercantile Exchange on Friday.

AP writers Jeremiah Marquez in Hong Kong, Tomoko A. Hosaka in Tokyo and researcher Bonnie Cao in Beijing contributed to this report.

http://finance.yahoo.com/news/World-markets-fall-as-Japans-apf-14371292.html

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May We All Make More $$$ Faster

Likesmoney


http://likesmoney.comxa.com/

We are in deep recession. It looks like dow just broke a long term support here.