Join        Login             Stock Quote

Daily State Of The Markets: And We're Back To Bad Old Days

 April 16, 2012 08:39 AM

(By David D. Moenning) Good Morning. After four months of watching the bulls march merrily higher on a daily basis, with nary a single bout of volatility along the way, suddenly we're back to what is beginning to feel like the bad old days of 2011. A market that had no memory from one day to the next. A market that gave the word volatility new meaning. And a market where investors were forced to watch any and all headlines from countries they'd only visited (or dreamed of visiting) on vacation as well as securities they'd never heard of before. (Come on, admit it; did you really watch European debt spreads against the bund before last summer?)

Yep, that's right; it appears that the good old days of watching Apple (AAPL) defy logic as well as gravity might be ending. And in case you don't spend at least a moment or two of each and every day checking in on all things Apple, the world's biggest company appeared to be almost human on Friday. AAPL shares sank nearly 3% and are now within six bucks or so of breaking into a downtrend - the horror! And after the way Google (GOOG) traded Friday after its earnings report, tech may be a problem if it doesn't perk up soon.

And then there are the banks. Don't look now, but all of that Q1 good cheer appears to be fading fast as the KBE (SPDR bank index) got smoked on Friday. Perhaps it was the earnings from Wells Fargo (WFC) or maybe somebody didn't like Jamie Dimon's numbers over at JPM, but if the XLF sees another day like Friday, we could be back to misery in the financial sector right quick.

Whenever the character of the markets shifts - and especially when that shift is sudden - it makes lots of folks scratch their heads. For unless you know that constant change is simply part of the game, you may be frustrated by the realization that the strategy that had been printing money for you (can you say "buy the dips" - all the dips?) is suddenly not working.

While I am willing to hold out the idea that the dip buyers may return to the game just as quickly as they abandoned it over the last two weeks, it appears to me that the character of this market has indeed shifted. The reason behind the quick rule change in the game appears to be the idea that investors are now anything but certain of the themes that had been driving the markets steadily higher from late-December through the beginning of April.

Next Page >>12


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.