European news leaks continue to whip the markets up and down. Early in the day, word of a major vote in Italy on a budget drove the markets higher. Hopes of a significant resolution to the Italian debt problems circled in the air. While Berlusconi won the vote, the parliamentary majority was lost. This means any sort of political effort towards a major bailout deal could be a tough fight.
The markets are slightly lower today as all eyes are on Europe. Greece and Italy continue to dominate the headlines as they try and avoid an epic collapse and default. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $119.06, -0.54 (-0.45%). While the markets are waiting for more news, many tech stocks are showing bearish daily chart patterns.
Investors, traders and even institutions are feeling pain today after the markets collapsed for the second day in a row. Just days after the media proclaimed all was perfect in the world once more, poor economic news ripped the markets from China and the massive bailout of Greece may fall apart. The S&P 500 has fallen over 5% in the last two trading days.
The markets are lower across the board. Japanese intervention in the currency market, coupled with worries over Italy have sparked some profit taking. The SPDR Dow Jones Industrial Average ETF (AMEX:DIA) is trading at $120.54, -1.50 (-1.23%) while the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is trading at $58.37, -0.57 (-0.97%).
The markets are partying today. The SPDR S&P 500 ETF (AMEX:SPY) hit a high of $127.80, a gain of 3% at the open. Word hit late last night that the European leaders agreed on a major deal to relieve Greece of 50% of its debt burden. This buys it more time to get its house in order. This was largely expected but still a positive for the markets.
The U.S. Dollar Index futures (DX Z1) just fell off a cliff before the opening bell. When the U.S. Dollar Index declines the major stock indexes will inflate and trade higher. You see, nobody really cares about the poor earnings reaction to Amazon.com Inc (NASDAQ:AMZN), and Broadcom Corp (NASDAQ:BRCM) earnings. The markets are simply reacting to the action in the U.S. Dollar Index. When the U.S.
The three E's are hurting the market today. Earnings, Economic Data and Europe. A compilation of negative earnings, economic news and worries from Europe sent markets lower today. The S&P 500 is trading at 1,236.93, -17.26 (-1.38%). In the last three weeks, the markets have seen a meteoric rise of 15% across the board. It is due for a pull back.
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The markets are hovering around the flat line today, looking like a lost lamb, unsure of where to go. This is coming on the back of a late day mega squeeze yesterday. A report surfaced from a UK news outlet that a 2 trillion Euro bailout fund agreement had been reached between France and Germany. After the markets ripped higher, the report was proven to be false.
Options Expiration Week: Whipping The Little Players
Options expiration week has arrived. This is notoriously a wild week for stocks as institutions whip the markets up and down, shaking out the weak handed option holders. The markets usually run the opposite way of the recent trend. In the last two weeks, stocks have staged one of their best rallies in recent years.