If fundamentals don’t matter, why should technicals. Silver broke below the latter few, this kind of disorderly selling (partly based on margin requirements) usually suggests that some leveraged traders are in trouble. Also, the long commodities, short dollar trade must be unwinding. Oil and oil stocks got creamed too, same trade. There were lots of options at various strikes betting on a bounce.
The VIX did bounce as did TLT in sympathy, but the time for that latter trade is over methinks.On the momo front, PCLN pops on earnings but that is so “last month!” Rumors that GMCR had some fuzzy accounting which, if true, means an easy 10%. After today, that is the only downside bet I have left. Its back to watch and wait after a good week. I hope the few of you who are showing up to read these posts are learning something.
Reading tea leaves for tomorrow, I wonder how much of a surprise any negative unemployment reports will be after this week. All that money out of commodities-oil, silver, momos has to go somewhere. Looked like it was retail today as suddenly “there is no inflation.” Big declines like these have met with really strong next day reversals – the main reason why I closed out most downside bets.