First Quarter Not Good for Stocks

The markets wound their way through the final day of the first quarter on Monday, trying in vain to freshen up an otherwise pig-ugly three months.

For the record, the Dow lost just over 1000 points, the NASDAQ shed 372 points and the S&P dropped 146. Overall, it was not as bad as the worst levels of the quarter, which in general were another 2-3% lower than the March 31 close.

Dow 12,262.89 +46.49: NASDAQ 2,279.10 +17.92; S&P 500 1,322.70 +7.48; NYSE Composite 8,797.29 +35.17

Substantial Wealth and Riches Creation
The Path of Substantial Wealth and Riches: Your Parents' Influence on Your Finances
substantialincomes.com

The indices actually finished higher for the day, mostly in a rejiggering of portfolios and in somewhat of a tepid response to the government's call to overhaul federal regulatory structures. The plan, largely promoted by Treasury Secretary Henry Paulson, calls for more oversight by the Federal Reserve, in the belief that they can somehow cure banks and other financial institutions from acting badly or stupidly or irresponsibly.

We would love to believe that the great and magnificent Federal Reserve Bank can also end poverty, cure cancer and rid people of the shame of psoriasis.

It's a sham, and, thankfully, the congress isn't about to enact sweeping regulatory reform this year, or next, at least.

Stocks mostly meandered in slightly positive territory most of the day, and the internals were similarly dull. Advancing issues outdid decliners, 3806-2453. New lows beat new highs for yet another session, 193-51.

What is remarkable is the abysmally low number of stocks making new highs. Even in the worst of times - like now - there are usually more than just a paltry few dozen every day. Economic conditions are abnormally severe with no real change on the horizon.

Commodities took it on the chin today, with oil down $4.04 to $101.58, gold off an even $15.00 to $921.50 and silver lower by 63 cents at $17.31.

While it may not be exactly the best time to be buying the metals, such a move could prove prudent, if only for the long term value. The temporary setback for gold and silver is not likely to last long, though long-term asset deflation is a looming problem that nobody really wants to notice or discuss.

The markets will adjust as needs. A crucial quarter for the US economy is about to get underway.

NYSE Volume 4,192,029,750
NASDAQ Volume 1,828,315,875

The Big Give-Back

After rocketing ahead early in the week, the markets gave back all of the gains and then some. The Dow, which closed Monday at 12,548.64, lost ground four consecutive sessions, finishing 145 points lower for the week.

Dow 12,216.40 -86.06; NASDAQ 2,261.18 -19.65; S&P 500 1,315.22 -10.44; NYSE Composite 8,762.12 -55.05

Volume was on the very low end of the scale, indicative of an end-of-month wait-and-see attitude all around, though Monday's final day of the quarter could prove significant.

Forex Beginner's Resource Website
Forex Foreign Currency Exchange Trading Beginner's Resource Center.

forexforexforexforex.com

It seems that no matter what moves the Fed makes and how much happy talk the Fox News and CNBC pundits produce, nothing can stop stocks from falling. Just glancing at the charts of the major indices shows that they are still in a holding pattern above recent lows and retests and retreats are inevitable.

Declining issues overwhelmed advancers once again, 4120-2075. Only 39 stocks made new 52-week highs, while 165 made new lows. The string of days with more new lows than new highs stretches back to October 31 of last year, except for two days in December. That's a very long run and the streak is now unlikely to be unbroken until we reach the original falling-off point in August.

Commodities continue to trade very uncertainly, with oil down $1.96 to $105.62, gold off $17.50 to $936.50, and silver down 61 cents to $17.94. Deflation is taking hold in a big way, which is expressly what the Fed sought to avoid with its interest rate cuts and interventions into the credit markets.

Obviously, it's not working.

NYSE Volume 3,610,889,000
NASDAQ Volume 1,739,376,375

Money Making Lounge is Here!

Hello fellow readers, I'm sorry for letting you without our daily reports for the last couple weeks. This time was needed in order to take things in the right place and now make a better blog for all of you.



As you may notice we added new Tags in the posts, so now you have more content to explore in Money Making Lounge. We will continue posting daily the best reports for you. Our template is clear and we work hard to never use abusive advertising here. I'm dealing with some customers that are interested to advertise their trademarks in Money Making Lounge, in order to bring the necessary resources.



We will continue with Bidvertiser, I got some people asking me why not use Adsense once it pays more. The point is cause Bidvertiser fits good and is not very burocratic, you can get paid through Paypal and is simple too.



If you want to contact MML please use my e-mail: mafaltti@gmail.com



Thanks for your understanding.

A. Mafaltti