Tough to trade a four day week and the first day of quarterly corporate earnings. Alcoa is traditionally the first to do so (have never known why); it has been that way for decades. Recently, it is understandable since they have less money to count. AA traded up for a minute after the announcement based upon announcement of cash on hand. Certainly not on (EPS). Perhaps it is a relief rally that they didn’t declare themselves a non-going concern. It may be far fetched to see the entire market rally on AA’s good news.
Market made an attempt to rally but in the last fifteen minutes it capitulated. The Dow gave up 50+ points to finish -186 on the Dow or -2.34%.
The breadth of the market was overwhelmingly negative. Huge volume trading on down ticks, a lot more new lows than highs, etc.
Remember the VIX? This is the fear index that trades as an option. Its price reflects the amount it would cost a portfolio manager to protect the portfolio from downside moves. On October 23rd (that horrible day) of last year the VIX hit 96 during the day. Today it closed at 40.5, down 1%. This could be significant due to the downward move in VIX suggesting lower volatility. Keep the symbol on your monitor: .VIX.
Sidebar
This you will not believe. Watch Zappo customers buying shoes in real-time. I watched for about ten minutes and some Babe in Indiana bought six pairs! Oh, and there is some Chica in Tucson who has been buying everything in sight! Click on the shoe and it goes directly to the Zappos page. Pretty slick. http://bit.ly/zapposmap
