Market Starts the Day Taking Profits
Just as fast as you can count your earnings yesterday the market is already having you give them back. The major indices gapped this morning at the 9:30 AM open with the NASDAQ down almost 2% and the S&P 500 down 1.3% as of 10:54 AM.
The biggest loser is online giant Amazon.com (AMZN) which posted huge earnings but due to and I quote, “margin forecast worries” the stock has given all its gains back from yesterday and is down just over 16% early on today trading just below $85 a share. The stock closed yesterday above $100.
For the bulls though leaders Apple (AAPL) and Google (GOOG) are holding up nicely thus far being down only 1.8% and 1.5%, respectively.
Other big losers early on include Baidu.com (BIDU) giving back some of its gains from yesterday down 16 points of 4.5% on the day. Security software maker Blue Coat Systems (BCSI) gapped at the open today and is down over 9% trading below $43 a share, with no news to report on the stock. The China tracking exchange traded fund FXI is down over 6 points or 3% early on and Netflix who reported stellar earnings and ramped up great gains yesterday is down just over 5.5%.
Typically you will find a late morning rally that starts around 11 AM come into play, but how it well will help ease the pain early is anyone’s guess.
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What the hell happened with the Nasdaq? I was writing up some articles on that stock replacement strategy I emailed you about when I noticed the Nazz was down 66. It’s down about 74 now. It’s days like today that I wish I knew what real trading was about so that I could understand what the heck’s going on. I need to go and get a finance degree already hah!
How do you guys trade volatile markets like this? I’m personally sitting on the sidelines waiting for good setups.
I don’t know if there are going to be any good setups the rest of the year.. especially if we begin to enter a recession (if we haven’t already). It’s just ugly out there. I think that’s why some traders are jumping into bonds driving the yields down. Safety wins over volatility I guess.
I’m not finding any good daytrades either, right now its time to be patient
Yeah, there’s nothing out there. I’ve been taking the time to write up some articles on a stock replacement strategy for those of us that don’t day trade
It’s less stressful than trying to catch the market right now when everything’s so rough.
This is just nuts, now the market has rallied and the NASDAQ is all the way back up to 2,770 from its lows of about 2,720. Complete and utter craziness.
There was a hinting of a surprise discount rate cut which helped rally the market. At least VMWare beat estimates. EMC better do the same tomorrow morning!
Interestingly, VMW declined to provide any guidance on their fourth quarter. I think the stock would have gone up huge if it weren’t for the declining guidance, but this could slow it down some.
It could be taken either way. By not providing guidance, it keeps the investors thinking. By providing guidance, it may be setting up for disappointment. I don’t care one way or the other to be honest. I have my life savings on EMC tomorrow… well not really my life savings.. just the money I need to feed the dog. I keep telling her she needs to work for her kibble but she doesn’t listen.