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Need to Know
JUNE 03, 2013
5 gut checks before the stock
market's opening bell
By Shawn Langlois
Good
morning.
Welcome to June... and the stock swoon that tends to accompany
it. Over the past six years, only 2012 was a winner for the month, and that
may have been merely a rebound after big losses logged in May.
Before that, stocks fell for five straight Junes. They were hit especially
hard in 2008 and 2010, down 8.4% and 5.2%, respectively. The S&P 500,
despite Friday's drop, rose more than 2% last month, perhaps opening the
door for investors to take a breather and send stocks back in the June downtrend .
Then, of course, there's the Hindenburg Omen , a rare stock-market
warning signal that apparently popped up on Friday and totally freaked out traders .
Capitalogix's Howard Getson says "it has a pretty good track record , seems to be
based on reasonable theories, and might be useful as just another data
point urging caution." Barry Ritholtz calls it "a common pick-up line at permabear cocktail
parties."
Either way, there's no follow-through panic yet, at least in the U.S., even
if the rest of the world is limping mightily out of the June gates.
Key market gauges: Turkey stocks are getting plucked to
the tune of 7.2% after the riots over the weekend . The rest of
Europe is feeling sickly as well, with all the major indexes lower.
The mood wasn't much different in Asia , where the Nikkei's 3.7% drop cast
long shadows over the rest of the region. Read: Japan stocks sink as Asia digests China data
.
Despite the global pullback early, U.S. stocks look ready to mount a
comeback from last week's nasty finishing note. Futures on the Dow
and the S&P are both up a bit ahead of a busy slate of
economic reports in the coming days that will be punctuated by the employment report for May on Friday.
Gold is holding steady for now, but if Nouriel Roubini is right, it
won't last long. Read about why gold will drop below $1,000 by 2015 .
The buzz: Hulu gained plenty of attention over the weekend on
a report that a bidding war for the streaming TV service
is heating up between the likes of Yahoo , Time Warner and DirecTV .
Apple will probably see even more attention this week as its trial
over e-book price-fixing kicks off in New York. The company is accused
of hatching a plan with publishers in 2009 to set prices and
compete in the Amazon-dominated market.
U.S.-listed shares of Infosys are in play after the stock jumped some
5% in India on word of founder Narayana Murthy's return
as chairman. OmniVision , which rallied almost 20% on Friday, leads the
StockTwits trending list, joined by Sanofi , BlackBerry and Nike .
Federal Reserve Chairman Ben Bernanke is, as usual, catching some buzz --
and the requisite bucket of flak -- not so much for his policy decisions
this time, but rather for his speech at Princeton over the weekend.
The chart of the day: Jerry Khochoyan of The Armo Trader blog posted this warning
sign for U.S. Treasurys, explaining that we're seeing a "classic
(slanted) head and shoulders pattern" on the weekly chart of the
iShares Barclays 20+ Year Treasury Bond ETF . In light of some pretty big
recent drops, he said that he'll likely wait for consolidation before
taking up any short position. "As a trader, if a chart is setup for a
monster move, you must respect it," he wrote.
The
call of the day: Ivan Hoff says it's time to
"do less" and "cut position size." It's something the
best traders understand and excel at. "Everyone makes money in an
uptrend. Not everyone keeps it when the inevitable choppiness comes,"
the money manager writes in his blog post . He listed several reasons
for the "new market environment," including the resurfacing of
the "ultimate contrarian indicator," which is a non-business
media publisher hyping the bull market on its front page .
Random reads: Those wily pro-badger, anti-culling
campaigners, draped in fancy dress, hit Central London to wage the best of all the weekend's protests
.
North Koreans are putting their lives at risk by using
foreign currency.
Facebook's scramble-and-shake strategy . Meanwhile,
Zuck's sister came up with perhaps the nerdiest concept party of all time: Inbox Zero .
Surprising: Michael Douglas says oral sex caused his cancer . Not
surprising: The New York Post says Catherine Zeta-Jones was not available for comment .
"Baby, I swear I wasn't talking about you!" -Michael Douglas
making it worse
— Guy Endore-Kaiser (@GuyEndoreKaiser) June 3, 2013
A look back at some incredible footage caught by a trio
of storm chasers who died (doing what they loved?) on Friday, from
The Daily Beast.
Lastly, while humans are dressed up as badgers in Great Britain, here
are some penguins parading around Japan
wearing African costumes, outpointed by MarketWatch's Washington
bureau chief @MKTWgoldstein .
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