Mid Day Trading Update – The Blood Red Sea
Yesterday’s market rally back to SPY $157 was apparently just a backdrop for today’s heinous crime scene, in which every major stock in the DOW, S&P & NASDAQ complex took a turn for the worst. The DOW is now down close to 200 points down and we are back to levels seen during the consolidation period between February & March. The move today obviously begs the question, is the rally over?
Two major events that have happened this week is the Gold (NYSE: GLD) travesty and Apple (NASDAQ: AAPL) losing a major technical level around $420. The stock is now attempting to barrel through $400 and if it does I’d imagine most of the long positions will be spooked into bailing their positions earlier than expected.
Bank earnings have not been at all terrible and many of them were able to beat their estimates in some capacity. Bank of America (NYSE: BAC) earnings this morning was a slight miss yet the stock is getting demolished today down 6% and putting in the worst day it’s seen since November 2012. Goldman Sachs (NYSE: GS) is the weakest of the bunch and she reported earnings yesterday.
It’s possible the big players out there are booking profits because this sell-off today has been quite controlled and systematic. It’s a broad market sell as well because it doesn’t matter what sector you’re looking at there’s blood in the streets. The question is will we have the follow through that takes us down even further and can you put on short positions for a longer period in time and bet on this being the top of the markets for 2013 or at least for a short period of time. If that is the case, then what sector do zero in on?
Make sure to register for the webinar tomorrow after the close where we will discuss trading rules and why you always seem to break them!
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.