 |
| Hey, we’re still here! |
The market erased two days of gains Tuesday with another potent down day, signaling that last week’s three-day pull-back may have been just the start of a more significant correction. As the market reversed course Friday and continued yesterday, the bulls must have been left thinking, ‘is that all you’ve got?’ But the bears are finally showing some resilience themselves. Many of the most beaten down sectors had recovered and repaired technical damage, but choppy action yesterday put the indices in a tricky spot.
The precious metals continued to push higher, with gold keeping up with its out-performing cousin silver for once. There are once again a confluence of factors pushing gold prices higher. Inflation is a mounting concern and the fear trade is alive as Libya braces for an all-out Civil War. Both sides are arming civilians, and situation looks set to get much worse before it gets better.
Negative news involving the top two US banks also added fuel to the bearish fire. The SEC accused a former Goldman Sachs Group Inc. (GS) board member of tipping off Galleon Fund’s Raj Rajaratnam about Proctor & Gamble (PG) earnings as well as news of Warren Buffet’s $5 billion investment in Goldman. JP Morgan Chase & Co. (JPM) revealed that its legal liabilities could exceed reserves by as much as $4.5 billion.
One stock that held up well during the beatdown and bounced late in the afternoon was Netflix, Inc. (NFLX). We have been watching this stock for a potential buy signal, and today’s reversal (and bounce off 50-day moving average) is a great risk-reward opportunity to potentially try it.
For more market and individual stock commentary, watch Scott Redler’s Daily Recap video below.
*DISCLOSURE: Scott is long GLD, NFLX.
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.
