This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Markets Take No Prisoners: Dave's Daily

Stocks in this article: SPY IYT XRT SLV USL FXE EFA



Oil prices moved from $94 to $102 in 7 hours only to settle at $97.80 -- how's that for volatility? The euro spent the first half of Friday at 145 (already down 300 bps from Thursday) to close at around 143 after rumors (later denied) spread regarding Greece dropping euro. Silver and gold were all over the map again with rumors persisting of more margin calls.

U.S. stocks climbed nearly 175 points early based on the employment report showing 224K new jobs added while the unemployment rate inched up to 9%. Lost in this report were details regarding the Birth/Death Model (estimates of new businesses created or closed) or the number of part time jobs being created by the McDonald's of the world and lastly, a five vs. four week report.

HFT algos are programmed to react to headline numbers that beat expectations. The employment data was a beat and algos jumped on the news. But, remember, based on Wednesday's poor ADP jobs report and Thursday's Jobless Claims data employment report estimates were sharply lowered making Friday's news a large beat. More thoughtful types started selling the news around noon and doing so the rest of the day.

Leading U.S. stocks higher were materials (XLB) and the higher price-weighted components of the DJIA (BA, CAT, CVX, IBM, MMM and so forth).

All this volatility and conflicting news, while putting on a great show, causes Main Street to trust markets less in my opinion. This chaos in commodity markets is a major turn-off and will have negative consequences longer-term.

We've beaten the commodity story to death but we still await the juicy details from the exchanges as to the real story behind their draconian actions. Some of this may be contained in the silver Commitment of Traders report and Open Interest. Until we can analyze this properly let's wait. Further, there will be some serious trading casualties announced in the coming days so stay tuned for that.

The Fed continues to aid bulls with more QE Friday and ongoing poor economic data means there's no rush for them to stop POMO.

Trading volume was also higher today than the average over the past few months. Breadth, per the WSJ, was quite positive; but, a glance at the 5 minute SPY chart shows most volume was in selling.

 

 

 You can follow our pithy comments on twitter and join conversation with me on facebook.

 

Continue to U.S. Sector, Stocks & Bond ETFs

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs