Market outlook for March 1st, 2009: Scary!

Things couldn't be in a worse position at the open today. Futures show the Dow at 6,901 and the S&P is at 715 at 4:00am PST. European stock markets are also in a bad place with the CAC down 3.7%, the German DAX down 3.3% and the British FTSE down 4.4%. My friends this is very bad news as we are most certainly headed down to test the next support level of 6,200 on the Dow. and if we break that level it is down to 4,000.

I am reminded how much this is not just a U.S. problem, it is a Global problem. AIG, the world's largest insurer lost $61 Billion and needed more money from the government (hence the taxpayers) over the weekend. The gov't has added another $30 Billion to it's original investment. This is the 4th investment given to AIG.

If you ask me what you should do, I have no idea. But the best I can say is to preserve capital. This will be very painful, if it isn't already. Sorry for the negative outlook.