Cuttone and Co. Inc.

Well, that one left a mark, didn't it?

Investors went home last night, bruised and battered, with the Dow closing below 8000 for the first time in five years.  They return this morning, having tended their wounds, and are preparing to re-enter the fray. Overseas markets are off their lows, but a sense of gloom still envelops the financial community. It could be a rough one out there today.

This all reminds me of the bank run scene in "It's A Wonderful Life" only it's taking place on a massive global scale. Investors have decided that they all want cash at the same time and have been dumping

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The market took most of the day off yesterday in a blessedly dull session that was welcomed by exhausted traders. With the unofficial four day holiday weekend beckoning, traders may be in danger of developing a profound sense of ennui, if only for a few hours. This morning brings reports on a slew of economic indicators and they have the potential to cause investor angst, but most folks I know are hoping for an uneventful session and a quick getaway to gatherings with family and friends.

With steps finally being taken to address homeowner's issues and consumer lending, there was almost a sense

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President-Elect Obama attempted to show that there was a new sheriff in town, introducing his new economic team and discussing his planned super stimulus package yesterday. It was all a bit like watching The Magnificent Seven striding into the village to protect the frightened settlers from trouble.(I had thought of The Seven Samurai for you Kurosawa buffs, but I’m going with a western/sheriff metaphor here today). First impressions are important and the President-Elect is clearly showing that the economy is his first priority. He has selected a strong team, particularly his nominee to

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Like an old car battery that can't hold a charge, the market keeps running out of juice late in the session.

An attempted rally off the lows fizzled and the Dow finished the day 224 points lower in a session that disappointed many who had hoped that the market may have some energy left. 

Pessimism reigns this morning as technical support levels appear to be giving way. Investors will look for explanatory remarks by Secretary Paulson, FDIC Head Sheila Bair and Fed Chairman Ben Bernanke to shed some light on the Treasury's handling of the TARP program, but I suspect that the hearings won't

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NASCAR drivers are required to wear head and neck restraint devices to protect against the type of severe whiplash that cost racing legend Dale Earnhardt his life. After yesterday’s action more than a few traders are going to get fitted out for restraints of their own as the market reversed an early afternoon decline of over 300 points on the Dow to finish in a stunning rally, with most major indexes closing up nearly 7% on the day. The snapback was breathtaking and veteran traders were happily talking to themselves as they departed for home. Days of thunder with the emotional swings that we

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Like migrant settlers trying to cross a great desert, investors find themselves exposed to the searing heat of the sun and many days of travel from an oasis.

High mountain walls block passage on either side and the only route seems to pass through the depths of Death Valley. It’s an arduous journey, but one that must be made. Despite its name, remember that nearly everyone who passed through Death Valley survived the passage.
 
Yesterday, traders had that terrible sinking feeling as stocks drifted deeper into the trough, with all signs pointing to a buyers strike. Secretary Paulson’s

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In the recent indie movie “Sideways” , Miles, a character played by Paul Giamatti finds himself in a downward spiral on the edge of alcoholism as he embarks on a road trip with his soon to be married best friend through California’s wine country. During the film, Miles has the opportunity to grasp love, nearly blows it and after revealing his distaste for merlot, finally decides to embark on a promising,  yet imperfect relationship that may eventually bear fruit. There seem to be a few parallels with today’s trading environment.

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Remember Peggy Lee's late-career hit "Is That All There is?", a song about life’s inevitable let downs and disillusionments? The song suggested that in the face of disappointments we all should “break out the booze and have a ball”. I wonder what she would have to say about life these days?

 

Yesterday morning, like partygoers waking up the day after a big shindig, investors awoke post-election hung over, fatigued and with the sobering realization that life goes on much as before. Unfortunately for investors, that life is one in which the economy is shrinking faster than an investment banker's

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Yesterday’s session was boring, uneventful and a welcome respite from the tumult that had marked trading for the last several weeks. It is to be hoped that with today’s election removing another bit of investor uncertainty, that the markets may have begun to stabilize. Expectations for a severe recession seem to be priced in at present, and traders seem to be taking the reduced financial prospects in stride. If economic indicators don’t deteriorate dramatically in the coming weeks, we may have turned a corner.

This morning investors are looking at polling statistics from the European markets

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