Thursday, October 9, 2008

US Market's Lose 7% Today, VIX Spikes, GM's Judgement Day (Ticker View, VIX Chart)

Market Summary 10/9/08 (Ticker View)

Volatility Index Spikes

The major market moving news today was about GM. "Standard & Poor's Ratings Services on Thursday placed General Motors Corp.'s debt on CreditWatch with negative implications, meaning the automaker's credit, which is already in junk territory, could face another downgrade". Marketwatch Link This killed GM's stock and exchange traded unsecured senior notes.

GM (Common Stock)

GMS (Exchange Traded Unsecured Senior Notes)

So it's going to be judgement day for GM soon. Around 8,000 on the Dow is the post '87 crash trend line, along with tech bubble lows. So in my opinion 8,000 (+/- 300pts) will not be breached, and we closed at 8,579 today so I think we're not that far from a bottom, unless this DOES turn into a great depression.