Health Care Takes A Hit

Health Care had been the best performing of the ten S&P 500 sectors year to date up until the last few days. Up until last week, Health Care was actually in overbought territory as investors sought refuge in a sector that is typically thought of as defensive in nature. As shown in the chart below, however, the sector has recently taken a big hit on news of higher pricing and new government-related plans for the industry. Just a few days ago, more than 80% of the stocks in the Health Care sector were trading above their 50-day moving averages. Currently the percentage stands at just nineteen. When government moves in, investors head for the hills.






Source:Bespoke Investment Group

US Economy Shrinks at Worst Pace in 25 Years

The U.S. economy contracted by a stunning 6.2% rate during the last quarter of 2008, the U.S. Commerce Department said Friday, as the more than year-long recession deepened to levels not seen in 25 years.

According to the government’s report, U.S. GDP contracted by a seasonally-adjusted rate of 6.2% in the fourth quarter. GDP was revised down from its first read of a decline of 3.8%, which came out last month.

The contraction of 6.2% was much worse than what economists were looking for, who expected the nation’s economy to contract by 5.4% during the quarter.

It was the worst quarterly contraction in the nation’s economy since 1982, according to the Commerce Department.

Stock Market Tanks After Obama's Anti-Capitalist Speech

The media sure loved the socialist big government speech last night by Dear Leader.
Unfortunately, the markets didn't.
Reuters reported:

"The tone was set early by disappointment President Barack Obama shed little new light about how his administration would stabilize the economy in a major speech before Congress."

It looks like another Barry Market day.
Will Obama and Democrats bust below that 7,000 ceiling? We'll see:

RICK SANTELLI ERUPTS... Rips Up Obama Mortgage Bailout Plan

Rick's Revolution-- Let the Tea Party Begin!

Rick Santelli erupted on The Kudlow Report- He ripped up and tossed the Obama bailout plan on national TV.

Chicago Traders Mock Obama's Housing Bailout Plan

CNBC´s Rick Santelli and the traders on the floor of the CBOE express outrage over the notion they may have to pay their neighbor's mortgage, particularly if they bought far more house than they could actually afford, with Jason Roney, Sharmac Capital.

Study shows upwards of 80% of hedge fund employees never actually knew what the word “hedge” meant

Chicago, IL—A recent study conducted by the Gallop Group showed that of 5,000 hedge fund employees surveyed during 2006-2007, 83% of respondents were unable to correctly define the word “hedge.”
“It’s just like, you know, part of the title” said one trader confidently. “Another way of saying ‘badass’ fund or ‘rockstar’ fund.” “My Range Rover is hedge,” he insisted, as if to corroborate. Other responses were equally absurd, ranging from “a Greek word” to “some Jewish dude’s last name.”
When told that hedging involved systematically eliminating risk, most subjects just stared ahead blankly. Others checked the time. Several respondents were able to eventually grasp the concept, but they found it quite novel. “Ohhh…you mean that…” said the portfolio manager of a $500M fund, as if a light bulb had gone off inside his head. He then added: “Yeah, we didn’t do that shit at all.”

DOUBLE DOWNED

Doubledown Media, the five-year old publisher of Trader Monthly, Dealmaker and other titles aimed at financial professionals, has put itself up for sale!

Banks history