it seems to me, that it is related to the bond auctions. Maybe they need to free up some cash so the carribean islands can buy up some debt? Either way, I think when auctions are done this week, it will turn back up. Earnings haven't been that pitiful. Ironic, how market soared on negative earnings a few years back.
yea, aren't bond prices supposed to function inversely to equities .. (isn't that investing 101?) If thats the case, considering we aren't breaking any support levels right now, I think this may be a last great buying opportunity. Short of FOMC bernanke throwing a kink in the markets next week, why should we not be bullish now? Housing and Ford are both -not news- (any downside surprise is easier to attribute to seasonality anyway) ... And inflation is under control, so FOMC rates aren't going up anytime soon.
"Panic Selling" .....with just 1 down day from the sp500 multi year high yesterday. ---again let me get this right you identified panic selling with 1 down day from a multi year high on your broadest most relevant index.---- You're better than me!! "Don't sit too close to the screen or all those pretty pixels won't make a good picture" 1 day does not a market make my friend. Jack
amazing you cannot be a trader (successfully) and be this myopic. PANIC SELLING??? the dow didn't even close down 1 frigging percent. it's amazing when volatility returns, tons of traders are going to be caught incapable of trading that kind of environmnet, as they can only relate to the recent past - low volatility. that is clear and why would you BUY the dips when indications were CLEAR that the market was selling off? if you want to buy the dips on a strongly trending down day, you better be nimble as hell, and quick with a stoploss as well. it's called "picking up pennies in front a freight train"
Program trading dictates flight to quality as the ten year approaches 5. When the ten year breaches 5, then there will be a vigorous flight to quality as the larger mutual funds go to cash. There were only two notable instances when the ten year was over 5 percent. In May-June of 2006 and prior to June of 2002. When the 5 percent mark was breached, then the market was downward trending or sideways. It doesnt matter how good earnings are at this point, we will experience multiple compression over the 5 percent mark.
Agreed, Marketbar... excellent point in my opinion. Take a look at TNX versus SPX if you haven't already.
Panic selling must be -70 or -100 in a couple of hours on ES , not something like this. Anyway... It looks like nobody wants to pay the price for getting caught at highs so we have a retracement off highs again.. we can have 10 to 25 more ES "follow-through" points to the downside.