|
Need to Know
JUNE 21, 2013
5 gut checks before the stock market's
opening bell
By Shawn Langlois
Good
morning.
Don't act so surprised. This transition was never going to be
easy. Cold sweats, the shakes, hallucinations ... weaning off that
yummy Fed smack was bound to be a bit bloody. So yesterday's taper tantrum , while maybe more severe
than anticipated, should come as no shock.
Now, after a week in which nothing else seemed to matter, we'll finally
catch a break from the Beard and all the QE monotony. Of course, it's
difficult to know whether these other factors will be any more stock-market
friendly.
First, we have quadruple witching , when various options
and futures expire. These days are typically marked by an uptick in both
volume and volatility. Hard to image a more volatile environment, though.
In fact, in the wee hours, there seems to be a calm settling over global markets.
The streak of triple-digit swings could be at risk.
As for direction, history gives us hardly any insight as to what this
scenario means for stocks, as the Dow has declined in seven of the past 15
witching sessions for an average loss of 0.3%, according to the
Stock Trader's Almanac .
Then there's China, where the headlines are reminiscent of Lehman Brothers . The
People's Bank of China is, at least, doing something to ease the
country's alarming credit squeeze, but analysts contend "much more forceful action" may
be needed.
Elsewhere, no amount of witching or emergency Chinese cash infusions will
help tech bellwether Oracle today. The stock is in a wicked tailspin after
its quarterly report.
Key market gauges: The U.S. stock market had its worst day
since November 2011, so where do we go from here? Higher, apparently.
Futures on the Dow and S&P are both picking themselves up off the mat.
Even gold is showing signs of life after being gutted on
Thursday.
Global markets are healing a bit, as well. The Nikkei closed up 1.7%
to buck some lingering weakness in the region, while Europe is
rallying on all fronts, particularly in France, where the CAC 40 is
up nearly 1%.
The buzz: Oracle shares took part in yesterday's
precipitous market drop, closing down 2.6%. And that's the good news. The
bad news is that the stock is getting torn to shreds
premarket as investors react to the top-line hiccup.
Apple, our call of the day, joins Oracle on the StockTwits trending list,
along with several ETFs like the Health Care Select Sector SPDR , the
Consumer Discretionary Select Sector SPDR and the ProShares
UltraShort Dow 30 . Read why it was a "particularly bad day"
for ETFs.
Facebook is worth watching, as well, with its stock up more than 2%
on a UBS upgrade and price target hike . Now
that Facebook has unveiled its own version of Vine, it's looking more
and more like Twitter. And they're both looking more like TV .
The chart of the day: It's like the Sports
Illustrated curse. When the mainstream news touts the strength of the stock
market, like USA Today did last month , best keep your
stops tight. It can work in the opposite way, too. Just take a look at
Bespoke Investment's "Drudge Headline Indicator" from
last year. "When financial stories dominate the front-page
headlines on a regular basis, it's probably getting close to an inflection
point for the market, whether it's a bottom or a top," Bespoke
explained. Well yesterday "Dow dives deep" was front and center
on Drudge. Bottom? It's pretty clear by this chart that when negative
headlines proliferate, the market rebounds.
The
call of the day: Apple has drifted into
relative obscurity lately, and it's eerily quiet in the Cupertino camp. But
that could change when the upcoming earnings report gives investors one last chance to buy before the
stock embarks on several years of big gains, according to StockSaints. The
Seeking Alpha contributor said, "Apple's best days are yet to
come," thanks to a product ramp that will kick in later this year and
continue to turn heads through 2014. Cue cheering fanboys.
Random reads: Paris tourist board tells locals to play nicer with visitors . If all else
fails, they could try attacking them with topless protesters .
The economics of eating out .
While Chinese lanterns helped solved one
mystery, the plot thickens in another . Maybe the authorities should call
Sally Morgan .
"Mate, mister, Sir David" ... Russell Brand on treating
drug addiction . And here he is causing a ruckus on MSNBC earlier
this week.
Meet North West, but you can call her Nori .
Congratulations to the nannies on their new bundle of joy! North West!
— kelly oxford (@kellyoxford) June 21, 2013
Need to Know starts early and is updated as needed until the opening
bell, but sign up here to get it delivered
once to your e-mail box. Be sure to check the Need to Know item. The
e-mailed version will be sent out at approximately 8:45 a.m. Eastern.
Follow @slangwise on Twitter.
MarketWatch
has sent you this newsletter because you signed up to receive it.
To ensure you receive this newsletter in the future, please add
marketwatchmail.com to your list of approved senders.
Sent to: alanrussell@princetoncap.com
Unsubscribe | Subscribe
Copyright
2013 MarketWatch, Inc. All rights reserved.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks
of MarketWatch, Inc.
By using this site, you agree to the Terms of Service and Privacy Policy (updated 6/26/07).
MarketWatch - Attn: Customer Service, 201 California St., San
Francisco, CA 94111
|
|
|
To sum up, business loans for bad credit uk are easy and affordable loan schemes which give you comforts along with cash. Getting such timely monetary aids is the best way to meet all your sudden expenses without any hassle, Please visit
ReplyDeletecheap loans for 5000
Secured Loans for Pensioners
Internet Loans Bad Credit People.