Tickers in this Article: ETFC, MEE, CIT, HAR, WFC
The S&P 500 hit a recent peak on June 12, 2009, and debate continues within the investment community over whether the market is in a bear market rally, or at the start of a new bull market. An investor who believes that the market is in a temporary pullback in the midst of a new bull market might want to use this consolidation in the market to enter new positions. IN PICTURES: Eight Ways To Survive A Market Downturn

The S&P 500 hit a high of 946.21 on June 12, 2009, and has pulled back to close on 893.04 on June 22. This pullback of nearly 6% has not been evenly distributed, with many index members much lower.

Biggest Losers
A logical place to start for investors who feel the market is consolidating before going on to new short-term highs, may be with a list of stocks that have performed the worst since the market peak on June 12. The percentage declines for the stocks listed below are from the market peak on June 12 through the close on June 22.

E*Trade Financial (Nasdaq:ETFC) - down 40%

Massey Energy (NYSE:MEE) – down 30%

CIT Group (NYSE:CIT) – down 25%

Harman International Industries (NYSE:HAR) – down 24%

Issuing Mistakes
E*Trade Financial had the misfortune of issuing dilutive capital to try to rescue its weak balance sheet. The company raised more than $400 million in a equity offering, and also announced a debt exchange where holders of two of its bond issues maturing in 2011 and 2017, can trade them in for E*Trades zero coupon convertible bonds.

Although the market savaged E*Trade, some think that this may be what the company needs to make it across to the other side of the financial crisis, with an analyst from FBR Capital upgrading the stock to outperform.

Massey Energy saw its stock fall after the U.S. Supreme Court said that a Judge on the West Virginia Supreme Court should have recused himself from the case because of ties to the CEO of Massey Energy. The court must now reconsider the case without the judge. It's not clear why the market would react so much considering that the amount involved is $82.7 million.

Ratings Downgrade
CIT Group saw a downgrade by Standard and Poor's, with the ratings agency cutting the company to BB-, and putting it on its watchlist for further downgrades. The agency cited liquidity concerns despite CIT Group converting to a bank holding company in order to be eligible for the Troubled Asset Relief Plan (TARP).

Standard and Poor's had a busy week, and also changed ratings on 22 U.S banks. Wells Fargo (NYSE:WFC) was one of the bank's downgraded and saw its ratings move from AA+ to AA.

Harman International also had a bad couple of weeks after first breaking through to a new 2009 high in early June. The company announced an equity offering and raised $200 million before fees to pay down part of its credit facility.

Final Thoughts
Investors who are bullish on the strength of the economy for the balance of 2009 and into 2010 should use the recent market consolidation to add to positions. A list of the stocks that have performed the worst since the market peak is a good place to start. (Read Buy When There's Blood In The Streets, to learn how contrarian investors find value in the worst market conditions.)

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