Wednesday Market Wrap

The stock market fell again today as disappointing retail sales revived concerns about the economy and another healthcare worker was found to have Ebola. The Dow was down 174, or 1.1%, to 16,142. The Nasdaq was down 12 or 0.3%, to 4,215, while the S&P 500 lost 15, or 0.8%, to 1,862. Declining issues narrowly outnumbered advancers on the NYSE, where volume was again heavy.

At one point the Dow was down about 450 points.

We also woke  up to the failure of what was a “done” deal, I speak of ABBV for SHGP takeover (the latter was down 30% or 70 points). Hedge funds got wrecked on this one.

Ebola made the front page again as another healthcare worker was diagnosed. Evidently she got on an airplane too, so that made things worse. As bad as the airlines have been because of this, the transportation etf IYT actually closed green and managed to take back its 200 day moving average.

Crude is getting wrecked too from global slowing fears and a rising dollar. I paid $2.90 to fill up my Wrangler yesterday.  It wasn’t that long ago that we were paying close to $4.

One of the most amazing data points today was that the 10 year treasury broke 2% and at one point tagged 1.86%.  Was that a capitulative bottom on yield? I guess we’ll know down the road.

After the close, NFLX reported earnings and dropped about 125 points at one point. Ugly stuff.  Tomorrow after the close we see GOOG report. All I can say is that report better be stellar because with this market the sellers are unforgiving.

This market is still a bit treacherous for longs. Until we get back to speed  I am trying a few day trades in the trading room. Yesterday we made 5 or 6 points in UVXY and today we made about 4-5 points in UVXY and 4 points long AGIO.

Hopefully we can load up with some quality swing trades soon and turn this thing around.

See you in the morning.



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