The market seems to have stabilized a bit after a downward gap and subsequent 12-point Nasdaq drop on the combination of increases in China’s bank reserves to slow their economy, and an Alcoa miss. It was also the end of a 6-day bull run. Gold, semi’s solar, foreign ETF’s, alternative energy and commodities took the biggest hits.

We think this market will turn around on good earnings news from companies like the banks and Intel Bloomberg has a survey that says S&P 500 companies surged 62 percent during the fourth quarter in the first increase since 2007, according to the average analyst estimate .

SMH, GDX, TBT (inverse treasuries), GDX, SMH, TBT, TAN, EWA, PBW, FXI, EPP, GUR, XME, and MOO took the greatest hits.

Regards,

Paul