Who would have thought Gadhafi’s saber rattling could create such market turmoil. I prefer the good old days when we were worried about what Fidel would do. At least you knew where you stood with Fidel. Moammar’s more unstable and completely unpredictable = big risks. At the open today it looked like XLE was going vertical but it quickly topped out and , SURPRISE!, ended the day in the red along with over 90 % of the index issues. The big winners today . . GLD and TLT, and the VIX, which was up an impressive 26%. A sell off has been long overdue and post op-ex weeks tend to underperform so today’s action had some statistical rationale. The big question of course is . . what’s next? One likely scenario: continued weakness/consolidation on Wednesday before a ramp up into Thursday and Friday in tandem with big POMO. Regardless, best to tread lightly for the short term.
Related posts:
