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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Accident-Prone Markets: Dave's Daily

Stocks in this article: F XLY C XLF AA XLB LNKD SOCL



 

With volume remaining holiday light and many indicators signaling overbought conditions, we've suggested markets were an accident waiting to happen. This is why what long positions we had were only half-sized. Much of Friday's losses, and the trigger for a decline, were tied to angst and confusion over Greek debt and austerity deals.

Right out of the gate Friday came word a reported Greek deal Thursday was "insufficient" from the EUs view. Demonstrators were on the streets in Athens protesting both violently and peacefully. It's all a little too much for Greek politicians to confront courageously and effectively. So another deadline has come and gone but the pressure hasn't abated. The positive and negative news cycle will continue.

To add to the trouble S&P downgraded 34 of 37 banks in Italy following the country's downgrade. This shouldn't surprise anyone but it did throw some gas on the fire of negative sentiment.

Earnings news was scant on Friday and the only economic news of note was Consumer Sentiment (72.5 versus 74.3 expected & prior 75). Little noticed overall was a U.S. budget deficit projection of $1.3 trillion for 2012--this without even a budget passed by the U.S. Senate. Stating the obvious Bernanke urged more action to heal housing markets but much of this is already clear to most.

With more eurozone woes the dollar rallied while gold and commodities (oil, base metals, agriculture and etc) fell. Bonds rallied as stocks fell.

Stocks gapped lower early and remained down all day. Leading stocks and ETF sectors lower Friday was naturally eurozone issues (EZU and IEV), more volatile emerging markets (EEM and EEB) and materials (XLB) The exception from Thursday's results was LinkedIn (LNKD) which rose over 17% on positive earnings and no doubt some short covering.

Volume was modestly higher once again on sell days which are common as trailing stops get hit. Breadth per the WSJ was negative which at least reduces some overbought conditions.

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

 

SPY - The SPDR® S&P 500® ETF is a fund that, before expenses, generally corresponds to the price and yield performance of the S&P 500 Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
See more details

 

 

 

 

IWM - The iShares Russell 2000 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the small capitalization sector of the U.S. equity market as represented by the Russell 2000 Index. The index represents the approximately 2,000 smallest companies in the Russell 3000 Index.
See more details

 

QQQ - is an exchange-traded fund based on the Nasdaq-100 Index ®. The Fund will, under most circumstances, consists of all of stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The portfolio is rebalanced quarterly and reconstituted annually. See more details

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

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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