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Here's the thing, when you look at the market as a whole, it's down but not horrendously. When you look at certain sectors (oil, in particular and anything oil related), they've been obliterated. I mean, you have oil majors with a relative strength index in the teens (under 30 is oversold, under 20 is way oversold.) If you have any sort of long-term view (short-term, forget it), there are values to be had and yield while you wait.
Might things go further South? Sure, but I do think you have the broader market which is in a mere correction and you have certain sectors down very substantially in a short period of time. MLPs down huge, and as I noted in another thread, you have one of the largest with a $60.5 million dollar insider purchase yesterday.
With all of the discussion about energy being creamed, look at the drop solar stocks have taken. Once again, we have zero long-term view in this country - the SECOND oil drops in price, solar is thrown out without a moment's hesitation.
Just like the windmills, I hate seeing mile after mile of solar panels anywhere. Rooftops are great, especially on large buildings. But it's a big investment up front.
Retail sales numbers not good. First drop in eight months. Considering this is right before the Christmas shopping season (unless you are Home Depot) the fear factor must be high on investors minds.
With the drop in oil, also look at the rail car builders. Greenbrier from around $75 to $47 in less than a month. Trinity from $50 to $32. American Railcar from around $80 to $60.
With all of the discussion about energy being creamed, look at the drop solar stocks have taken. Once again, we have zero long-term view in this country - the SECOND oil drops in price, solar is thrown out without a moment's hesitation.
Yep, Scott, they're taking a major whacking, but the extent of it may also be related to the fact that renewables have had a huge runup since about the middle of 2013.
Edit: the two renewable energy etf's I keep up with ended the day up 1.7% and 2.2%. Wild.
scott, I don't know much about the rail industry. American Railcar is on all cylinders. Highly profitable. Balance sheet shows improvements over the last couple annual reports. Also Carl Ichan is a major player of the percentage of float.
Oh, I completely agree with you. I'm just remarking at the speed in which a story (huge backorders, big theme, companies saying that they're doing well) is evacuated. I really don't think anything has changed in regards to the story, but it is what it is.
Does anyone else like these running commentary threads? It did spur some conversation and maybe we should have one each day especially on big days up or down.
@Kaspa. The bubble area is a trading volume indicator relative it 50 day average. Solid means the trading volume is greater than 50 day average. Hollow means it is less than 50 day average. So, a big solid bubbles mean volume is several times the 50 day average. Small bubbles mean average volume. Nothing too scientific. Just a visual aid.
Comments
Might things go further South? Sure, but I do think you have the broader market which is in a mere correction and you have certain sectors down very substantially in a short period of time. MLPs down huge, and as I noted in another thread, you have one of the largest with a $60.5 million dollar insider purchase yesterday.
Under 200 day average.
Volatility remains high.
Twice average volume this week.
With all of the discussion about energy being creamed, look at the drop solar stocks have taken. Once again, we have zero long-term view in this country - the SECOND oil drops in price, solar is thrown out without a moment's hesitation.
Here is data for TAN - Solar EtF, off 34% since March:
Keep in mind, that we here; are not all equity centric.
Some bonds sectors are smiles at the moment; but who knows what 3:59PM may bring.
Thank you for all of your efforts.
Catch
Here's where the smart money has been lately...with catch212 and Mr. Gundlach
Edit: the two renewable energy etf's I keep up with ended the day up 1.7% and 2.2%. Wild.
I am sure you have explained this before, but what do the size of the bubbles in your graph indicate?
Guess I picked wrong day to add to it.
What down day?
These here falling knives are behaving erratically!