The seemingly unending decline in the stock market will most likely continue into Friday as few investors will want to hold their stocks through the long holiday weekend. Already the selloff has stretched six straight trading days, with each day ratcheting up triple digit losses of the Dow Jones Industrial Average.

Today’s market saw the Dow fall over 600 points, closing below 9,000 and at its lowest point in five years. It would not be a surprise to see Friday’s market close down another several hundred points as everyone gets out before the weekend. Dow component GM’s stock fell 31%, which largely contributed to sending the index 7% lower on the day.

Meanwhile some of the short ETF’s I discussed in yesterday’s post performed very well today including the UltraShort Financial (SKF) up 21%, UltraShort Dow 30 (DXD) up 11%, UltraShort Consumer Goods (SZK) up 12.5%. These ETF’s will surely be highly active during Friday’s session as more investors look to hedge their exposure to more downside potential in the market.

Technorati Tags: , , , , , , , , , , ,