Yesterday they headed for the exits. It was one of those awful Mondays. The S+P touched 1739.66 15 minutes before the close. Today they were looking for the Bounce. It was more like a splat followed by occasional spasms of dashed hope. It ended at 1755.20 but fell apart after hours. There is too much baggage in the news with employment coming on Friday. The Hopers were hoping for a perfect Good News/Bad News both Good setup like last year. Their hope kept it afloat like Denver Fans I guess.
Emerging markets saw their shadow and went all Ground Hog a day late after the StuporBowl. Two marijuana states came to play, but Denver (AFC) got stoned an' they missed it against the greatest defense to lace up the cleats lately. Seattle took the hardware home with Paul Allen.
The VVIX remains high after falling below 98 to 100.4 at the close. Yesterday it made 109.67 They are having trouble selling this bounce through all that fluff. Janet Yellen had a hard first day after being sworn in on the job. On her second day, fund managers were looking for more correction. After all, emerging markets are 45-50% of the S+P.
That deceased feline still hit a $65 B padding being taped away to a sheet on the asphalt. It still has inflation to bounce off of after all that injected liquidity. There was no gnashing of teeth though, and no real panic. This was just the expected correction to the late year end rally that wouldn't quit. One pundit surmised that traders were having a Taper Tantrum but the Fed was still off on vacation.
We will have to see if it is a sucker bounce like the last few here, but it was a fair correction. But they are looking for more if they can. The Fed doesn't meet until March 18. China markets are closed for New Year of the Horse until Friday (Thursday evening) pre Employment news as well.
Putin may have his Persian Pussy, but the Winter Olympics will open then too. Let's watch it all unfold....
No comments:
Post a Comment