Stock Market Report Friday

Online Stock Trading for Beginners - Stock Market Report

Stocks fell on Friday for the third day in a row, this is the first time the stock market has fallen so far since March 2009. The ostensible reason for the fall is President Obama's plans to get taxpayer money back from the banks, but in fact the market was due a correction anyway. Beginners to stock market trading may be confused by the gyrations in stock prices, but rest assured it is all part of a great plan by the wealthy of this world to make sure that they stay wealthy, so there is nothing to fear (except a second stock market crash of course - see below)..

The DOW fell 217 points and all the major indices fell over 2%.

Major companies are reporting good earnings but are disappointing by taking a cautious stance on the U.S. economy.

Next week will bring more uncertainty with earnings reports and the possibility that Fed Chairman Ben Bernanke will not be reappointed. Some people hold Bernanke responsible for a lot of the economy's problems.

The Nasdaq composite fell 62.18, or 2.7% to 2,203.52, after Google's earnings, and an analysts' downgrade of chip makers - Google fell 5.9%.

Capital One - the Credit card issuer - fell over 10% after reporting an increase in the percentage of loans it expects to not be repaid.

Other credit card issuers fell after Fitch said delinquent credit card balances hit a record high. American Express Co. fell almost 9% to $38.50.

Decliners beat risers by two to one.

The Russell 2000 fell 2% to 616.07.

According to Robert Prechter and the Elliott Wave Financial Forecast we are due a fall im markets and things could hardly be worse : "2010 is the year when the bear market in stocks returns in full force." The current situation they say resembles the brief rebound in the stock market back in 1929. A "a meaningful close" below 10,489 (the DOW is now at 10,172) should lead to new bear market lows ! That means the DOW needs to lose all of its gains since March 2009 and then some ! Sounds unpleasant but unfrtunately Mr Prechter has a reputation for getting things right.

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