Friday Outlook: Out of Options?

I thought we were dangerously on a cliff a few days ago and now we've been pushed off.

There could be more trouble as an institution like Citigroup (C) below $5 must be sold by institutions prohibited from owning stocks below that price. Alwaleed, the wealthy Saudi who owned 4% of the stock, said he was upping his ownership to 5% today. Perhaps someone tapped him on the shoulder and told him to do that to prevent more selling. Obviously the Big Three auto companies are no longer in the books of those institutions barred from owning sub $5 stocks. Alcoa (AA) is closing in on $5 as well.

We're going through a crash if only in slow motion. Everything the government has done has only prolonged the death spiral. Bernanke is dusting off his Depression prevention studies, taking another look and perhaps tweaking his models.

Volume increased today and breadth probably put in another negative 90/10 day. And, just as I wrote that, subscriber and blog reader David Hurwitz, vacationing in Geneva, sent me the updated market internals. He needs to relax and have some fun but we thank him.































I'm not going to bother today posting a dozen charts on US sectors since they look the same across the board. If you wish, yesterday we highlighted many and you can just add another 3-7% to the down leg.


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