The Ingredients Are There…
Stocks opened lower on a Triple
Witching Friday as volatility was very high in the session.
With the massive layoffs in the
Airline and Aerospace industry and consumer confidence continues to fall in
light of the potential for a long war, the economy must brace itself for a
potential short-term recession. What we have seen and may continue to see is the
shifting of funds to Treasuries.
Traders should be cautious and
continue to monitor news as the markets continue to be event driven. We know
that the markets are oversold as the
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have reached some extreme levels, but these are not ordinary times. The market
environment is so unpredictable we could see
a major turn anytime. Many market professionals who I have spoken with and those
who were interviewed on CNBC believe this could happen in the very near term.
Some even say in a day or so.
Once again, we see a confluence of
events — VIX at extremes, panic selloff, volume and broadening patterns in sectors
and major indexes both here and abroad, the ingredients are there for a turn.
Breadth for the session was negative.
NYSE decliners led advancers 2437 to 785. Nasdaq advancers lagged decliners 1011
to 2302.
The CBOE Volatility Index
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moved lower 1.5% as the Nasdaq 100 Volatility Index
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fractionally 0.1%.
The broader markets ended the week in
the red as the Nasdaq Composite closed off 3.2% shedding almost 270 points, while the Dow Jones Industrial
close off 1.6% losing almost 1400 point in the week.
Sectors in the green, the
Transportation Index
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the railway stocks.
The Oil Services Index
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closed up 4.5%.
And the Securities Broker Dealer Index
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In the red was the Biotechnology Index
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which slid 5.1%.
The Semiconductor Index
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lost 3.0%.
And the GSTI Internet Index
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closing down 4.3%.
Stocks gaining in the session, handbag
designer Gucci Group
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richest men have overcome a major hurdle with regard to a feud over ownership of
the company.
Rail stock Northfolk Southern’s
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shares climbed 8.3%.
Also in the group was CSX Corp
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which gained 5.1%.
Public security products company,
Compudyne
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Losing ground was Meristary
Hospitality
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ONI Systems
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clobbered, falling 40.3% after the company lowered Q3 revenue guidance from
$75-$80 million to come in between $40-$50 million with a loss of 17 to 21 cents a
share. According to Multex, expectations were for a loss of 4 cents a share.
Fair Isaac & Company
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slid 6.3%.
Gilead Sciences
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lost 6.6%.
And biotechnology companies Imclone
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fell 9.5% and Invitrogen
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