Dec 4 Post

Dow down 215. We had an interesting day. Oil was absolutely taken out back and beaten. Oil went down 6.88% and is currently at $43.70. I see no reason for oil to go up. We could see a 2 handle on oil in no time. It’s so interesting that two months ago people were chanting “Drill Baby Drill” and now oil tankers are being used as storage and Opec’s capacity cuts can’t stop the drop. This is just amazing!!

Financials did pretty good today until the last hour. They did good because many traders are just programmed that rate cuts are good for financials so they buy financial stocks. For the most part that is true but the BOE and ECB cut from a very high base. It would be like Grubbs Infiniti marking up a $40,000 car up to $80,000 and then cut the price 40%. You’re still overpriced by $8,000. Why would someone get excited about that?

We did have a big selloff at the end of the day because people wanted to get ready for the Jobs Report tomorrow. Everyone knows it will be bad and it will have to be really bad to shock the market. If it is inline, the market will rally (yes, that is stupid but that is what the market does). I think it will be really bad. Consensus is -350K at 6.8% unemployment rate. I wouldn’t be shocked with -500K.

I said this morning….. “all day long I see stories of companies cutting thousands of jobs around the world. It is just picking up speed.” I did some homework and made a list of companies that cut jobs in just the past two days!!

AT&T cut 12,000 jobs

Telecom Italia SpA cut 4,000 jobs

Windstream cut 170 jobs

Credit Suisse Group cut 5,300 jobs

State Street Corp. cut 1,600 to 1,800 jobs

Japan's Nomura Holdings Inc. cut 1,000 jobs

Sanofi-Aventis SA cut 6,500-person U.S. sales force.

GlaxoSmithKline PLC cut 200 jobs

Vale do Rio Doce cut 1,300 jobs,

Adobe Systems Inc. cut 600 jobs

Jefferies Group Inc. cut 400 jobs

DuPont Co., cut 2,500 jobs

Viacom Inc., cut 850 jobs

NBC Universal cut 80 jobs

Steelcase Inc. cut 900 jobs

Belden Inc. cut 1,800 jobs

RealNetworks cut 130 jobs

That’s right…..this is just TWO DAYS!! Guys I hate to say it but we are in a depression. Stay short!!!