On 18 August 2008, when the trading session of Wall Street started, there was way too much negativity going on in the market. During the time of this post, the market is in the red zone, Dow Jones Industrial Index is down by 161.05 or 1.38 percent.
The tone was set by credit worries which investors think that there may be more losses from the mortgage crisis by the two major U.S. Home Finance Providers, Fannie Mae and Freddie Mac. Investors do feel that the housing slump has yet to be solved. The two giant home finance providers had led the market direction against financial company stocks.
This problem can be very difficult to tackle to bring market back to the recovery mood. Market may extend losses further in light of credit worries.
The above are of personal opinion and not at all an inducement to trade.