Remember S&P 820? It was suggested repeatedly here that if that was broken the market could re-test the lows. The index is at 793 down 4%, since shortly after the opening. The important 2:30pm time will tell us if we can find buyers at this level. Or, if capitulation is in the cards.
About the only stocks up now are gold shares. As well as, TEVA and MJN. The latter is an IPO from last week. I bought a little then. TEVA reported good earnings and, as expected, raised the dividend by a third. Shares are up 5%.
Gold seems a bit out of breath. Not sure how long I’ll hold my positions.
Freeport McMoran is getting crushed as it reflects copper’s dramatic price decline. The company’s gold component (20%) is not large enough to mask the decline in copper.
With the general market trend comprising 60% of an individual security’s move there is little reason to initiate new positions. And every reason to sell.
