After a nearly 300 point gap down in the DOW this morning, the market recovered more than half of those losses during the session. The catalyst for the overnight drop was an increase in radiation from the damaged nuclear reactors in Japan, and during the day there was no further deterioration in the situation. Headline risk remains high with volatile situation in Japan and unrest in the Middle East, but emotional situations like the nuclear fear create buying opportunities for level-headed traders who don’t get too aggressive too early.
While the indices were only able to take back around half of their losses, there were several stocks that went green after large pre-market losses. PotashCorp./Saskatchewan (POT) finally perked up after weeks of selling, going green after a 5% overnight drop. Netflix, Inc. (NFLX) actually opened slightly higher after an upgrade from Goldman Sachs Group Inc. (GS) and was a monster all day. On the energy front, both solar stocks and uranium stocks surged. The solars have climbed under the presumption that governments will opt more for renewable, safer energy sources after the nuclear crisis, while uranium stocks have been weak for the same reason. In an interesting note, the iShares MSCI Japan Index ETF (EWJ) erased all of its overnight losses after a 7% gap down.
For more market and stock commentary, watch T3Live.com’s Daily Recap video with Scott Redler below.
*DISCLOSURE: Scott Redler is long RIMM, POT, X, GLD, AMZN, AAPL, NYX, SLV, V, F; Short SPY.
This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by T3 LIVE or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs. Visit the T3Live Homepage, Virtual Trading Floor, and Learn More About Us.
