What an ugly day. No one was spared today. The only winners today were the inverse funds and the VXX.
The financials were the leaders down today as the Dow dropped 200 points and closed at its low of the day and the SPX lost 3% to drop 28.19 points as well as closing back under it’s critical 200ma. But nearly every group participated in the downside. The BKX dropped nearly 7%. The exchange stocks got hit with CME down 24 pts andICE down nearly 10 points. Energy stocks were not far behind with most being down anywhere from 5-9% as oil sold off $2.49 to close at $67.06. Oils and oil service stocks were not the only losers as the coals and solars got hit also, with most the major coal related stocks down in excess of 10%. Solar stocks were right there with them with FSLR dropping a whopping 11+ points.
Not to be spared, other glamour stocks such as RIMM, -$4.67 and BIDU, -$19.58 shared in the joy as Techs came under fire after staging a nice rally over the past few months. AAPL was the best performer, only dropping a couple of points.
The carnage started during the night as gold, which has been weak, started dropping about 3am before finally recovering some to close at 922ish. But gold was simply a reflection of the entire commodity trade. Everything and anything commodity related was hit. Potash, the golden child of the commodity stocks, after staging a huge rally from the 50 range back to 120 the past few months has now dropped 30 points in the past week.
So where to from here? As you can see, though we’re oversold on some of the short term indicators, we’re not really close to any major support area until we get down to the 880 area.