But, what did we say?!? Volatility will rule the roost from August to Halloween. It's the nature of the beast and if any investors think markets move in a straight line, then we wouldn't really have a market would we?!? You need buyers and sellers!
Enough of the soapbox. Let's look at the box score.
Most of Asia was down last night, but get this: China was up. The Shanghai Composite rose 1.2% even though its peers and the U.S. markets took it on the chin.
In U.S. action--which was not sweet--S&P 500 dropped 2.2%. The article in this morning's USA Today is a riot, because the strategists they talked to blame the sell-off on 1) market/investor fatigue (what?!?), 2) financials selling-off because investors think losses may occur again in coming months (double what-what?!?).
That makes zero sense to the folks at LandColt. How is it we have market fatigue when the markets haven't posted historical gains...yet?!? Nobody seemed fatigued when the markets suddenly plummeted and 13 trillion dollars was wiped off of household balance sheets?!? Geez, folks--it does work both ways!
And, this nonsense about financials and posting losses. What happened between Monday and Tuesday?!? After all, pending home sales were up to its highest rate since June 2007--which means homeowners are taking out mortgages, which is good for banks.
Big day today with the first look at the jobs report with the Challenger data. I'll report once I have a chance to review the numbers.
Talk to you,
Todd M. Schoenberger, Managing Director
LandColt Trading, Inc.