Foreign Markets Continue to Sell-Off Sharply

China HSI down 1400+ points in the last 2 sessions

FTSE down 3.3% on lows

(UBS) AG Common Stock – CFO: Bk Saw No Material Change In Client Fund Inflow Due To Trading Scandal

(DB) Deutsche Bank says Q3 CB&S results well below expectations

(ANR) Alpha natural Resources Coming into 08 lows, trading off this AM after being sold aggressively yesterday after a bad guide

Floor Chatter Recap:

The S&P closed at its lowest level in over year, eerily our mid day recap said it felt like the bottom could fall out. The crisis of confidence in global leadership may be morphing. As stated in our earlier report, macro data was better in the US only to be overshadowed by the lack of continuity coming out of Europe.

The European Finance Minister meeting has turned into a three ring circus. Will Greece be allowed to default? Will all nations have the political will to pass the EFSF? Can it be levered without causing downgrades and legal issues? Our own banking system has been thrown back into the spotlight as Bank of America has cracked six to the downside. As soon as that occurred volume exploded and the market legged down into the bell. Definitely not a healthy close.

The YEN is at 10 year highs versus the Euro. The NY Composite Advance/Decline line is taking out August lows. A key indicator I watch, the ratio trade between Apple and the Yen cracked its 50 day moving average signaling a risk off mentality has taken hold. U- down volume was almost laughable, one point close to the closing bell there was 1.1 billion shares on the tape and only 34 million was on a plus tick.

The TRIN went out toward the highs as well as the VIX. Australia will render an interest rate decision this evening. The European continent will be fairly quiet on the macro data front as well. Beware, the FinMins are still milling about and Jean Claude and the Chairman will also be out and about tomorrow. Have a wonderful evening.

By Tim Kelleher

*Disclosure: Tim Kelleher is short AA, BAC, MS, UBS

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