US stocks swoon, Dow below 12,000

Stocks retreated broadly on Friday, with the Dow ending below 12,000 for the first time since March 18 and the Nasdaq erasing all of its gains for the year.

DJ and S&P continue to slide for the six consecutive weeks, its longest weekly slump since the fall of 2002.
The pressure points for the Dow’s slump included concern that China’s high-powered export economy could be slowing and a growing sense that Europe will be unable to reach a consensus on how to end the Greek debt crisis that has troubled markets for more than a year.

In the United States, a rash of sluggish indicators — especially related to the job market, manufacturing, consumer confidence and home sales — has economists worried about a stalled recovery. The nervousness was heightened this week when the Federal Reserve chairman, Ben S. Bernanke, said the economic recovery remained uneven but did not say the Fed would continue to intervene. Investor enthusiasm has cooled with signals from the Fed that it will end its purchase of $600 billion dollars in Treasury securities at the end of June. (New York Times, Graham Bowley)

USD likely to gain strength in short term while commodities currencies will dip alongside with energy, agri/soft and metal commodities.

Friends ask of my opinion on MSM IPO: My take.......

I love commodity stocks but I think MSM is priced on the high side w/ EPS of 2008, 2009, 2010 at 17 sen, 33.8 sen and 33.1 sen respectively. Don't know their dividend policy.

Honestly doubt their ability to do the regional expansion/acqusition in the footsteps of R.Kuok's Wilmar/PPB. I prefer to watch the price action on the open market for a whole month and take a position if/when the picture is clearer.

DJIA Market Notes

The Dow closed higher due to a late-day short covering rally on Friday. Early weakness saw the Dow post a new low for the year. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are oversold but are neutral signaling that sideways to lower prices are possible near-term.

If the Dow extends this year's decline, the April 1997 low crossing at 6315 is the next downside target. Closes above the 10-day moving average crossing at 6956 are needed to temper the near-term bearish outlook in the market. Closes above the 20-day moving average crossing at 7383 are needed to confirm that a short-term low has been posted. R2 = 7383, R1 = 6956. S1 = 6469. S2 = April 1997 low crossing at 6315.

April gold closed sharply higher on Friday as it consolidated some of this week's decline. The mid-range close sets the stage for a steady opening on Monday. Closes above the 20-day moving average crossing at 944.62 are needed to confirm that a short-term low has been posted. R2 = 964, R1 = 944, . S1 = 900, S2 = 892

DJIA, S&P 500 at 1997 Level. Gold Holds.

Wall Street has turned the clock back to 1997.

Investors unable to extinguish their worries about a recession that has no end in sight dumped stocks again Monday. The Dow Jones industrial average tumbled 251 points to its lowest close at 7115 since May 7, 1997, while the Standard & Poor's 500 index logged its lowest finish at 743 since April 11, 1997.

Meanwhile, gold continues to hold its ground.
UOB quotes GML 1 oz = RM 3,771 sell / 3,686 buy
MBB quotes KIJANG 1 oz = RM 3,835 sell / 3,713 buy
MBB gold saving passbook ac./gm = RM 122.84 sell / 113.74
PBB gold invest ac./gm = RM 119.15 sell / 114.43

If you have bought at GML at RM 2,850 your gain would have been RM 836, a massive 29%.