Intel Corp (INTC)

[mmoy]

Yesterday's large drop was on surprisingly low volume which meant that sellers were allowed to just sell with little in the way of buyers out there. Perhaps those that want to be out are out (in terms of big players).

Tradable bounce? Maybe. Treasury announced a bailout by the FDIC for GE yesterday so the FDIC is going to back GE Capital's $139 billion in debt. The funny thind is that the FDIC only has about $40 billion in its insurance fund.

Next week is options expirations too so maybe we get a countertrend bounce for a week or at least a few days.

That mall operator (second-largest in the US) dropped to $0.37 cents yesterday. If it does go bankrupt, they will have to sell their commercial properties into an illiquid market which should drop prices considerably. This could result in a further mark-to-market of other commercial real estate companies triggering collatoral problems with other REITS on their debt.

It feels to me that the economy has a ways to go to get to recovery. The stock market can always anticipate that. But I think that it's too early for the long run.