Economic news for the period featured massive layoffs last seen during the World War II era, Treasury Secretary Geithner's protracted confirmation on alleged tax "discrepancies," ever evolving rumors of a "bad bank" asset purchase program, the controversial $820-plus billion "stimulus" program, mostly negative earnings, and the worst quarterly Gross Domestic Product reading since the early 1980's.
Style-wise, Large-Cap Growth stocks outperformed (PWB -3.1%). Sector-wise, Healthcare and Energy held relatively fast (XLV -1.2%/ XLE -1.8%), as the Industrials and Financials finished significantly lower (XLI -12.0%/ XLF -26.2%). While there is always a chance for an oversold rebound ahead, one has to wonder how much we can reasonably expect from a market whose "belle of the ball" remains the proposed extent and developmental status of various government relief programs.
Volatility: Moderate-High (VIX 38-57)
The Style-Box was calculated using the following PowerShares™ ETFs: Small-Growth (PWT), Small-Value (PWY), Mid-Growth (PWJ), Mid-Value (PWP), Large-Growth (PWB), and Large-Value (PWV). The Sector-Ribbon was calculated using the following Select Sector SPDR™ ETFs: Materials (XLB), Industrials (XLI), Energy (XLE), Staples (XLP), Discretionary (XLY), Financials (XLF), Technology (XLK), and Healthcare (XLV). The Standard & Poors 500, Dow Jones Industrial Average and NASDAQ 100 may be traded through ETF proxies, including the SPY or IVV, DIA and QQQQ, respectively.