Stock Market Crash Report - Critical Condition

I know this market feels chaotic, but I believe it is hinged upon two key related issues, with subplots that feed into them. The issues at play are, in this order, the real economy and the Fed’s view of the economy. Investors are unsure now whether the two are consistent, and so stock valuations are being tested against the shift in Fed monetary policy. Resolution of the issue can come by two means, proof positive of global economic health or Fed reversion to dovish policy. Perhaps a slowing of monetary tightening pace, with no action at the March FOMC meeting and some adjustment to Fed rate projections, might also help to solidify equity values. To the contrary, slippage into economic recession would solidify the bear market for stocks. The most recent service sector measurements indicated slower growth, which is worrisome given the manufacturing recession and still imperfect structure of our economy and labor market. I am concerned at this point, and believe the Fed must signal next week that global conditions are less favorable than they were in December and that it is data dependent, implying it lays off. In March, I believe it is mandatory the Fed’s projections show a slower likely pace, if any at all, for further monetary tightening this year. Finally, I’m sorry to say that if we do not see draws from aggregate petroleum inventories this month with the colder weather, then the near future is bleak for energy and for equities. See more on the Stock Market Outlook here.

Sector Security	Wednesday’s Open
SPDR S&P 500 (NYSE: SPY)	-1.6%
SPDR Dow Jones (NYSE: DIA)	-1.8%
PowerShares QQQ (Nasdaq: QQQ)	-1.6%
iShares Russell 2000 (NYSE: IWM)	-1.5%
Vanguard Total Stock Market (NYSE: VTI)	-1.1%
iPath S&P GSCI Crude Oil (NYSE: OIL)	-2.9%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Article should interest investors in Bank of America (NYSE: BAC), J.P. Morgan Chase (NYSE: JPM), Goldman Sachs (NYSE: GS), Citigroup (NYSE: C), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), TD Bank (NYSE: TD), PNC Bank (NYSE: PNC), State Street (NYSE: STT), Janus (NYSE: JNS), T. Rowe Price (Nasdaq: TROW), General Electric (NYSE: GE), Wal-Mart (NYSE: WMT), McDonald's (NYSE: MCD), Alcoa (NYSE: AA), American Express (NYSE: AXP), Boeing (NYSE: BA), Caterpillar (NYSE: CAT), Cisco Systems (Nasdaq: CSCO), Chevron (NYSE: CVX), DuPont (NYSE: DD), Walt Disney (NYSE: DIS), Home Depot (NYSE: HD), Hewlett-Packard (NYSE: HPQ), IBM (NYSE: IBM), Intel (Nasdaq: INTC), Johnson & Johnson (NYSE: JNJ), Kraft (NYSE: KFT), Coca-Cola (NYSE: KO), 3M (NYSE: MMM), Merck (NYSE: MRK), Microsoft (Nasdaq: MSFT), Pfizer (NYSE: PFE), Procter & Gamble (NYSE: PG), AT&T (NYSE: T), Travelers (NYSE: TRV), United Technologies (NYSE: UTX), Verizon (NYSE: VZ), Exxon Mobil (NYSE: XOM), Paychex (Nasdaq: PAYX), Manpower (NYSE: MAN), Robert Half International (NYSE: RHI), 51Job Inc. (Nasdaq: JOBS), Monster World Wide (NYSE: MWW), Korn/Ferry International (NYSE: KFY), Administaff (NYSE: ASF), Kforce (Nasdaq: KFRC), TrueBlue (NYSE: TBI), Dice Holdings (NYSE: DHX), Kelly Services (Nasdaq: KELYA), SFN Group (NYSE: SFN), CDI Corp. (NYSE: CDI), Cross Country Healthcare (Nasdaq: CCRN), On Assignment (Nasdaq: ASGN), AMN Healthcare Services (NYSE: AHS), Barrett Business Services (Nasdaq: BBSI), Hudson Highland Group (Nasdaq: HHGP), StarTek (NYSE: SRT), RCM Technologies (Nasdaq: RCMT), VirtualScopics (Nasdaq: VSCP), General Employment Enterprises (NYSE: JOB) and TeamStaff (Nasdaq: TSTF).