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Trading Today: Anxiety But No Panic

We have seen these days often in the past month. Stocks start lower on heavy volume (it looked like we might do 2 billion shares at the NYSE at the open), but very quickly the selling pressure eased, and an old-fashioned buyers strike ensued.

The bad news is that we are sitting right on the November 21 closing low of 7,552.29 on the Dow, which was the recent bottom.

Today is once again a 90 percent downside day, where 90 percent of the volume and the points went to the downside.

Energy and financials had a particularly ugly day, with new lows in many of the regional banks.

The GM reorganization plan: big questions. The GM and Chrysler plans are do to be presented to the U.S. government after the close.

    • GM and Chrysler Race to Prepare Survival Plans

It's likely they will announce four core brands (Chevy, Cadillac, GMC, Buick), but beyond that there are big questions:

1) Will anything new come out concerning the UAW negotiations?

2) Who will dealerships that are being closed be compensated?

3) What aboutDelphi?

4) When do they get the $4 billion remaining of the $13 billion government loan? Hopefully immediately!

Unfortunately, some of the biggest questions traders have won't be answered:

1) Does the Fed have the willpower to call the loans and force a bankruptcy filing if the UAW and bondholders are intransigent?

2) GM equity: what's it worth? If the bondholders convert debt to equity, and the government injects more money that is converted to equity, little money will be left for the shareholders. Many on the Street believe this process is inevitable, and the stock of GM is, like Fannie and Freddie, essentially worthless.

GM down 14 percent to a new low.

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