Friday, October 10, 2014

U.S. equities don't respond in the afternoon

From this morning's post here, it was obvious that a bad start was expected but followed by some kind of rebound in the afternoon.  That did not happen.  The small cap demolition continued.  Energy weakness continued.  There was surprising vulnerability in bigger tech(see QCOM and TXN).  And one can assume that there was some necessary margin selling as well as decisions made to harvest recent gains(see FB and TWTR).

It will be interesting to see how the market digests all of this over the weekend and to see how earnings show up next week.  Barron's will probably sell out early tomorrow.  Wall Street Journal Weekend will last longer only because they publish more newspapers.

What happened today is not subject to rigorous financial analysis.  It is the dynamics of the market and of the human mind.  Patience is required.  It's a perfect night for baseball.


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