Dow sink more than 358 points

The stock market today tanked 358+ points or 3% to a new 52-week low. Moving in the other direction, crude prices hit a new intraday record high, crossing the $140 per barrel threshold right after the market have closed in the after market.

Large-cap tech names were among the session’s worst performers as the Nasdaq 100 fell more than 4%. Research In Motion (RIMM 123.46, -18.88) down more than 13% to its lowest level in two months. The company disappointed investors by reporting earnings per share results that were a penny shy of the quarterly consensus estimate. Meanwhile, Oracle (ORCL 21.42, -1.13) disappointed its investors with an underwhelming forecast.

All ten of the major economic sectors finished markedly lower. Five sectors closed with losses in excess of 3%.

Financials (-4.4%) were the session’s worst performing economic sector. According to reports, Goldman Sachs stated Citigroup (C 17.67, -1.18) may incur additional write-downs and may also raise more capital, while Merrill Lynch (MER 33.05, -2.41) may need to raise additional capital as well. Shares of C were added to Goldman’s Conviction Sell List, according to Dow Jones; the stock hit a new 52-week low today.

Also hitting a 52-week low were shares of Dow components General Motors (GM 11.43, -1.38) and General Electric (GE 26.53, -1.46). Goldman Sachs cut estimates for General Motors, while The Wall Street Journal reported GE is having difficulty selling its credit card business.

We have broke all the march low and the market is heading for a breakdown. Be sure to prep yourself with July, Aug, September put position to hedge against weaking economy.

There will be more downside profits to be made in the financials, BAC, C, WB are my top picks for put postions. MMM is also breaking down its support, this stock is heading lower on increasing volume. Make sure you enter your position on any short rally day.

To your success!

Andy Huang