Midday Update: Wild Ride After The Open
Boy, was that a wild ride after the open today. I didn't sleep much last night, after seeing the Asian markets reeling (Japan declined more than 9%), so I came in extra early this morning.
The futures closed at their lows before the open, and once the regular trading session began, stocks immediately swooned. The Dow broke below 8000, but soon began to find support, and quickly rallied roughly +800 points to move back into positive territory.
There was a load roar on the floor of the NYSE, but they may have celebrated prematurely. There is still plenty of time left in today's session, and Friday market closes have not been very kind to investors this year (nor Mondays).
Morgan Stanely and Goldman Sachs are both under pressure this morning, even as the bank index is higher on the day. Apple is higher today also. But the big declines in MS and GS are certainly worrisome, as the leverage unwind parade continues.
Speaking of unwinding leverage, our monthly client letter went out today and discusses this in more detail. If you would like a copy, just post your e-mail in the comment box below (I'll delete it after I send out the email).
Oil continues to plunge today, hitting $80. The dollar is up today vs. the Euro. The 10-year yield is also up, at 3.86%. The VIX made a new record high at 74.45, an amazing level. And the put/call ratio opened at 2.05, something I don't think I've ever seen.
Back after the close--