A little flurry of buying in the closing 5 minutes tacked on 2 S&P points and took the major indexes off the lows. Only the Russell 2000 finished with a greater than 1% loss (1.4%) as it has been relatively weak versus the senior indexes for the past few sessions. While today was the "worst day of the year" – it was quite a low bar as the previous biggest loss on the S&P 500 was -0.57%.
The S&P 500 held well above the 10 day moving average (didn't even really touch it) and did not even attempt to fill the gap from last Friday's employment report. The teflon market rolls on for now. Speculators on twitter are already whispering about Chinese bank easing over the weekend – woo hoo.
While I knew PIMCO was massively influential during the financial crisis, I did not realize a mutual fund shop could potentially be thrown in with banks as "systematically important" institutions. But considering just how many bonds they own, I guess it makes sense. Obviously, Mr. Gross is not happy with this potential situation, as it would come with more cost and oversight. …
… it's a bona fide premarket selloff. Haven't seen one in eons. Certainly not in 2012.
As mentioned Wednesday evening, VIX was suspiciously strong mid week, despite the grind upward in the indexes. That action in volatility continued yesterday. That said, the grind upward tossing aside the morning selloff ALSO continued for a 4th straight session, causing ever more frustration for those hoping to catch a mid day turn.
Yes that is what I said too…
While this is a private company, I found it to be a fascinating story since it is always interesting to hear where these out of the blue blockbuster products come from. I had no idea it was a local story as well. I had heard Detroit Lions coach Jim Schwartz was at the Super Bowl, on the dole (i.e. pitching) 5 Hour Energy and it seemed like a strange connection, but now I see why he was a choice (again, local). Believe it or not I've never imbibed any sort of energy drink such as Monster or Red Bull, nor have I touched this 5 Hour Energy thing – but apparently I am in the minority as these are huge sellers. It's a long write up in Forbes – some snippets below: …