The market just opened for trading and here is what we’re following.
The Dow is down 163 to 10,895 within the first minute and I can’t type as fast as it is falling.
American International Group (AIG, $2.50, down $1.25) got an $85 billion bailout from the government.
Morgan Stanley (MS, $23.18, down $5.52) smashed earnings after the bell yesterday by 53 cents and is getting mauled.
Goldman Sachs (GS, $119.05, down $13.96) is down over 10% again. Goldman and Morgan are the last two remaining independent investment banks. This is down from five at the beginning of the year. Watch both stocks carefully. Both could head even lower today and may become compelling bargains….at least for a quick trade.
Wachovia (WB, $10.60, down $0.91) is down around 8% but we should be okay with yesterday’s entry price. More on this later today.
SanDisk (SNDK, $21.87, up $6.83) is up 45% after the company rejected a nearly $6 billion takeover offer from Samsung Electronics.
Looking back over the past few months, I am amazed by what has transpired within the market place. And I don’t say that lightly. I have followed the market and written about the market back in the Internet boom/bust days and the September 11 terrorist attacks. This is the current market climate that we are in.
The ferocity of equity market carnage that we have seen with the financials, homebuilders and other sectors is the type of carnage we saw with the Internet stocks and Enron only on a much larger scale.
Rick Rouse
Rick@OptionsMentoring.com
