Investors Skeptical of Stimulus Plan Being Signed Today

The market is sharply lower in early trading, on the heels of weakness in overseas markets. There remains considerable concern about Europe's financial institutions, slowing economic growth in Asia (Japan), and a stimulus plan here in the U.S. that has done little to reassure investors.

Outside of the above issues, there is no real catalyst that is causing the weakness in the markets this morning. Safe havens are trading higher, namely Treasuries and gold. The 10-yr yield is down to 2.67% today (-7%) and gold is another 3% higher to $965 (its high last year was $1033).

There are a couple of stocks that are bucking the weakness. TEVA and WMT are both higher today after reporting solid earnings reports. TEVA also raised its dividend.

Oil is also very weak today, trading back down to $35. This is weighing heavily on the energy stocks, as well as material stocks.

And the VIX is spiking +14% right now, pushing it back above its 50-day near 49.21.

Trading comment: The S&P 500 has broken below that key support I have been watching (815-820). As such, I want to get more defensive. I still have half of the etf hedges I bought recently, but will look to add to them on any strength. I will look to add the eft that hedges emerging markets (EEV).