We won’t try to peg the exact market reading for you, but the market is going far further than defensive right out of the chute this morning. The DJIA had hit -200 points so it is likely that trading curbs are in effect. The Japanese vice minister’s comments about Japanese rates rising further is perhaps the largest contributor to this sell-off. but right now the markets appear to have sold off almost everything.
After looking at the 20 First Line Defensive Stocks and even the Second Line of 15 Defensive Stocks we outlined, even those are down in a SELL EVERYTHING mentality that started brewing pre-market. The down volume is drastic out of the chute. As a reminder, if we get a stabilization these are the ones that should get the first "buy safety" money in theory. Theory is theory, so don’t expect guarantees.
Out of the top 20 first line defensive stocks for a crummy market, only 2 out of 20 of them are actually up right after the open. Here are the market levels at 9:44 AM EST:
DJIA 12,097.19; Down 171.44 (1.40%)
NASDAQ 2,367.03; Down 49.12 (2.03%)
S&P500 1,384.14; Down 22.68 (1.61%)
10YR-Bond 4.52%; Down 0.03%
Jon C. Ogg
March 1, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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