The mineral trade has been one for the ages. Stocks like Molycorp, Inc. (NYSE:MCP) doubled in value in the month of December, soaring to an all time high of $62.80. Rare earth metals and minerals were the place to be as rumors surfaced out of China that they may lower the amount allowed for export. A rocket ship move was an understatement for stocks like MCP and Rare Element Resources Ltd.
Earnings from the big name companies cannot seem to keep the markets floating any longer. By 10:00am ET, the SPDR S&P 500 ETF (NYSE:SPY) hit a high of $129.17. Since then, they have fallen all the way back to new lows of the day at $128.30. This is extremely unusual for a light volume market on a Friday and must peak ones interest.
This morning the U.S. Dollar Index was in rally mode. As the dollar rallied higher the major stock indexes in the United States sold off sharply. Around 11:00 when the U.S. Dollar Index traded around the $79.10 area it reversed and sold off. As we all know by now when the dollar dips the market flips.
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The markets sold for the second straight day, dropping sharply as commodities took the brunt of the sell off. The SPDR S&P 500 ETF (NYSE:SPY) opened slightly lower on the day and then collapsed, much like yesterday. The SPY is trading at $127.40, -0.85 (-0.66%). The key to the drop today was continued fear from China.
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The market is lower today after key earnings announcements were not quite enough to keep the recent massive gains in the markets. Apple Inc. (NASDAQ:AAPL) reported stellar earnings, blasting past Wall Street estimates. However, regardless of what they made last quarter, now AAPL investors must face uncertainty with future earnings from a company without Steve Jobs.
Oracle Corp.(NASDAQ:ORCL) is trading slightly lower this morning by 0.18 cents to $31.35 a share. The stock comes under some selling pressure as the NASDAQ Index starts the morning in the red. Oracle stock will have some short term intra-day support around the $31.20 area and more support around the $31.05 area. Traders can watch these levels for small intra-day bounces.