Oooh that was ugly!
Thank goodness the Nasdaq tanked right off the bat and triggered our cash out or this could have been awful. As I said earlier, any downturn in the Nasdaq would drag down the other indices but I wasn’t expecting that.
The index closed at 2,272 – already halfway towards the 200 dma at 2,230, a level not seen since Jan 1. The S&P flew down to its 50 dma of 1,302 but held there. The Dow stopped at the interesting psychological point of 11,500 but more because it ran out of time rather than taking some kind of bounce:
http://finance.yahoo.com/q/bc?s=%5EDJI&t=1d&l=on&z=m&q=l&c=
Nothing worked, I have a tech screen where the only stock that gained was PLAY – that’s how weird today was! I made the horrendous mistake of holding some golds too long and gave up half my gains but I bought them all back again at the end of the day anyway with my redeployed cash.
Oil and gold flew up but oil and gold stocks went down indicating that we are either in a major rotation out of commodities or that the whole econonomy is going to hell in a handbasket.
If we don’t get a nice snap back tomorrow I would suggest a vacation from stocks for a week or two!
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I still have my PBR shorts as Bolivia’s Morales seems to have declared war on them so I don’t think it even matters what they earn tomorrow.
http://biz.yahoo.com/ap/060511/eu_bolivia_nationalization.html?.v=2
I also kept my XOM $62.50 puts even though they didn’t go over .35 even on that nice move down.
By sheer luck of the draw I got out of my remaining EXPE’s pre earnings because the earnings were a disaster! Income dropped 51% as “expenses ate into profits.” Revenues were up only 2% on a 14% increase in bookings but “We increased costs in many sectors — necessarily we believe for our long term growth — but didn’t generate the revenues to offset the increased expenses,” Barry Diller, Expedia’s chairman, said in a statement. Wow, ya think?
ATI, of course, did not go down but I got out of that one too – even TIE dropped a point today.
IAG was one of the best performing golds, gaining 1.2% during the day and another 35% (that’s right 35%) so far overnight, not on earnings but on a preliminary assessment of operations that looks very good. Of course I was too busy selling to take up this new position but I sure hope someone out there benefited from this pick of the $10s for .25!
http://biz.yahoo.com/prnews/060511/to225.html?.v=28
MT dropped 5% on the day and I love the $40s into earnings for .95 but too late to buy it now.
VVUS picked up anothe 24% today, driving the Dec $5s up to $1.30 (up 550%) before I got around to selling it!
http://finance.yahoo.com/q/bc?s=VVUS&t=5d
GME continued down so I held that one as the $45 puts moved to $1.05 (up 215%).
PD was one of the most baffling stocks as it dropped 2.5% even as copper hit a new all-time high. Copper is what they sell people!
For all of today’s drops the oil plays we’ve been tracking are still generally above the point we bagan watching them last Friday – tomorrow I’ll do a review and we will see where we stand after a week.
