380 Point Dow Drop---Major Correction Coming

The Dow plummeted 380 point today in market action. The financial sector suffered the most of the S&P 500 sectors. The financials make up 20% of the S&P. The volatility has increased and the market seems headed for a major correction.

Vol. was 2.8 billion shares with the brokers leading the way on the loses.

Goldman Sachs, http://finance.yahoo.com/q?d=v1&s=gs

Lehman Bros., http://finance.yahoo.com/q?d=v1&s=leh

Bear Sterns, http://finance.yahoo.com/q?d=v1&s=bsc.

The retailers suffered a major lost as the consumer is not spending now that the home equity refinance window is shut. We see continuing declines in the consumer retail sector as well as the homebuilders and casual dining.

The consumer does not have the benefit of refinancing and extracting equity for consumer purchases as we see a decline in GDP in the third quarter.

We continuing pressure in the residential mortgage sector as the resetting of the interest rates on the ARMs will increase the monthly payments forcing more homeowners into foreclosure.


The credit window is shut tight until the market absorbs the excess.

OTCBB Leaders:

Global 1 Investment Holdings, http://finance.yahoo.com/q?d=v1&s=goih.ob