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.
Scalp trading or day trading is when a trader looks to catch small moves in the stock market within a single trading day. Day traders will usually hold a stock for a few seconds to a few hours within a trading session. This type of trading style is not for everyone, however, it does have its benefits as most scalp traders will not have the risk of holding a stock overnight.
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.
Markets are trading lower across the board. This is due to JPMorgan Chase & Co. (NYSE:JPM) reporting earnings that did not meet the expectations of Wall Street. Worries about exposure to bad loans and Europe continue to be a seen as a problem for the bank. In addition, Chinese economic data came in weaker than expected.
The SPDR S&P 500 ETF (NYSE:SPY) is hitting a double top from September 20th, 2011. This high was $121.90 and has now been officially tagged. This hit is coming after close to a 13% bounce in the market from just one week ago. It is also pushing up on anticipation of the Federal Reserve minutes being released at 2pm ET.