Stock Market Selloff Broad-based Selling in the S&P 500, Nasdaq, and Dow Jones
Stiff selling on Friday resulted in SMF PRO TRADERS REVERSAL THAT MARIO TALKED ABOUT IT WAS the stock market's worst weekly loss since January and marked a weak finish to April watch the weekly video that Mario Marciano said how the market would end up. Still, the stock market was able to book its third straight monthly gain.
The early tone of trade tepid as market participants made little response news that the first quarter GDP hit an annualized rate of 3.2%.
The headline number was essentially on par with the 3.3% increase that had been widely expected, but more pleasing was that personal consumption increased 3.6%, which was stronger than the 3.3% increase that had been widely anticipated.
The failure of the report to bring buyers into trade eventually gave way to widespread weakness. The selling effort was initially focused on financial plays and tech plays... Financials fell 2.5% as investment banks dropped 6.3% amid news that
Goldman Sachs (GS 145.20, -15.04) will be part of a federal criminal probe and tech stocks tumbled 2.2% as semiconductor names fell 4.5%... Such steep losses among the two sectors, which combine to make up some 35% of the S&P 500 market weight, imbued the broader market, such that by the close declining issues outnumbered advancers by nearly 7-to-1 in the broader market.
Volatility spiked as a result of the stiff selling effort. In turn, the Volatility Index, often dubbed the "fear gauge," spiraled nearly 20% higher... Utilities stocks were able to gain, though. The sector settled 0.5% higher as many participants sought the sector's relative safety and the support of the sector's plus-4% dividend yield, based on current prices... Gold also gained as a result of the increased volatility and weakness in the equity market.
The yellow metal settled 1.0% higher to $1180.70 per ounce, a 2010 closing high. That actually helped gold stocks in the face broader market weakness... Conviction among gold buyers was strong enough to disregard an upturn by the dollar against competing currencies. The greenback closed with a slight loss after it had turned up from a loss of 0.5% amid a stronger euro, which benefited from further contraction in the bond yields of Greece and Portugal...
The dollar still finished the week with a 0.6% gain, which puts it up 0.5% for the month and up some 5% for the year. As for the S&P 500, it fell 2.5% this week, but it still managed to close April with a 1.1% gain. The stock market is still up more than 6% year-to-date and less than 3% off of its 52-week high. Dow -1.4%, Nasdaq -2.0%, S&P 500 -1.7%, Nasdaq 100 -2.1%, S&P 400 -2.0%, Russell 2000 -2.9%
True story folks nothing like this has ever been done SMF TRADING PLATFORM when you witness it the truth is strong see it for yourself www.stockmarketfunding.com sing up and read the how mario called bottoms and tops over many years.
Mario runs the SMF Pro Trading School founded by him and SMF is rolling out the new SMF Pro Traders Platform a pure mathematical trading system that is 100% accurate the new trading system phase 1 will be out in 2 weeks and users can watch in amazement while SMF Pro Trading Students are banking huge profits this platform does the job takes out emotion and rationalization and opinions works only with dollar price movements mathematically in both directions of the markets not to mention all markets around the world.
Have doubts sign up and see it now in action on a daily basis not only that spread the good word this is real come witness the truth you have 100% to gain nothing to loose isn’t that a fresh of breath air that for the first time you found someone was telling the truth.
Mario Marciano at StockMarketFunding.com has told many investors and traders over a year ago about the inflation trade and how it will get out of control in June of 2010.
His expert opinions are always on the money it is very clear that we are not having the huge problems as of this writing. New SMF Pro Traders get prepared, looking out longer term these positions starting in 2010.
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Nov. 26 (Bloomberg) -- Brazilian stocks fell the most in two weeks and the currency tumbled after inflation accelerated and Dubai’s attempt to reschedule its debt rattled investors seeking higher returns in emerging markets.
Lojas Renner SA, Brazil’s biggest publicly traded clothing retailer, led declines on the Bovespa index as investors boosted their bets for bigger interest-rate increases next year. Vale SA, the world’s biggest iron-ore miner, and smaller rival MMX Mineracao & Metalicos SA dropped more than 2 percent as metals prices fell after government investment company Dubai World sought to delay repayment on much of its debt.
“Everyone remembers the serious problem we had last year, and we don’t still know the real size of this thing. It could be nothing or it could be the beginning of something else that is just starting to appear,” said Guilherme Sand, who helps manage the equivalent of $400 million at Solidus Brokerage in Porto Alegre, Brazil. “And in light of that doubt investors are selling and retreating to the dollar.”
The Bovespa lost 2.3 percent to 66,391.80. The real fell the most this month, losing 1.4 percent to 1.7469 per dollar. The U.S. currency gained today against 15 of the 16 major currencies tracked by Bloomberg.
In other Latin American markets, Argentina’s Merval fell 4.3 percent and Chile’s Ipsa slid 2.1 percent. Mexico’s Bolsa index and the MSCI Emerging Markets index lost 2.2 percent.
Dubai World, with $59 billion of liabilities, roiled markets around the world. Moody’s Investors Service and Standard & Poor’s cut the ratings on state companies yesterday, saying they may consider state-controlled Dubai World’s plan to delay debt payments a default.
‘Dimension’
Europe’s Dow Jones Stoxx 600 Index retreated 3.2 percent while the Shanghai Composite Index slumped 3.6 percent, its biggest drop since August. U.S. markets are closed for the Thanksgiving holiday.
“The dimension of the thing starts to appear today as banks in Europe and in other places that were creditors start looking into possible problems” resulting from a default, said Alvaro Bandeira, director of Rio de Janeiro-based Agora Corretora, Brazil’s second-biggest brokerage.
Vale dropped 2.1 percent to 42.48 reais. Copper paced metal declines in London on speculation rising stockpiles and a rebound in the dollar signal slower demand for the metal. The Bloomberg Base Metals 3-Month Price Commodity Index fell 2.2 percent, the most in November.
MMX, the iron-ore producer controlled by Brazilian billionaire Eike Batista, fell 2.1 percent to 11.94 reais.
Oil Drops
Petroleo Brasileiro SA, Brazil’s state-controlled oil company, fell 2.5 percent to 38.45 reais as oil prices dropped. Crude for January delivery fell as much as 2.5 percent in electronic trading on the New York Mercantile Exchange. Batista’s OGX Petroleo & Gas Participacoes SA fell 2.7 percent to 1,430 reais.
Gerdau SA, Latin America’s biggest steelmaker, slid 2.6 percent to 27.77 reais. Chief Executive Officer Andre Gerdau Johannpeter said it’s too soon to raise prices in the Brazilian market.
Brazilian consumer prices measured by the IPCA-15 index rose 0.44 percent, up from 0.18 percent a month earlier, the national statistics agency said today.
The central bank may need to raise borrowing costs earlier next year than previously forecast as tax cuts fuel consumer spending and threaten inflation targets. The rate currently is at a record-low 8.75 percent.
Policy makers will likely boost rates to 12.75 percent by the end of 2010, according to Bloomberg estimates based on overnight interest-rate-futures contracts. The yield on the contract due January 2011 was up eight basis points, or 0.08 percentage point, to 10.28 percent, according to Bloomberg data.
Retailers Drop Mario Marciano at www.stockmarketfunding.com is telling people to short the retailers using the SMF Pro Trading Model going out 12 months from now and there are many more type of plays to trade longer term learn the SMF WAY the way to profits.
Higher rates may damp consumer spending. Lojas Renner declined 4.3 percent to 37.20 reais. Smaller rival Marisa SA dropped 1.4 percent to 9.60 reais. Lojas Americanas SA, the biggest discount retailer, fell 3.3 percent to 13.94 reais.
The real lost as much as 1.7 percent against the dollar. The cost of protecting government debt from Abu Dhabi to Bahrain extended the biggest increase since February as Dubai World sought a “standstill” agreement from creditors.
Lead veteran Trader and instructor Mario Marciano have there views on the economy and markets in the U.S. and emerging markets.
The U.S. Markets have gone to far to fast the we are approaching the earning season starting on October 5th 2009 we see that most stock prices since SMF had predicated the market lows in march 2009 have gone to far to fast.
Mario Marciano had predicted the market melt down with his traders at his side every step of the way. Mario is telling the SMF Pro Traders who attend a 52 week trading school that investors are going to get very disappointed and investors are going to pay the price they always pay and that is markets get hyped up and run to far to fast to meet this economy. StockMarketFunding.com teaches people from around the world about all markets not just the U.S Markets all markets have gotten ahead of themselves in the current cycle.
Stocks have surged around the world in the past six months as evidence that all emerging markets from around the world have gone straight up from the deepest recession since the 1930s. Earning season will have to show up on top line growth the unemployment is here to stay for sometime to come and the consumer is not part of the recovery.
The real economy is barely recovering while stocks have gone straight up from the very lows. The stock markets sustainability at current levels moving forward in forward looking years is at jeopardy again.
There is going to have to be more and more government fiscal stimulus to keep the markets moving higher from here and once that stimulus is taken out then what? In the near term there going to need more monetary stimulus period. The last round of stimulus goverments has added 2 trillion dollars now what is going to happen when they have to pull out? They go back down hard and future forward looking growth at 4% GDP for 2010 is not clear however the markets have priced in the rumor.
We will see and Mario Marciano and his traders at StockMarketfunding.com will take the downside when the time and sugar cane highs ware off. Wall Street is back to its old tricks again the same one that got us into the problems that took us down in 2008 asset bubbles that pop and stocks have been bid up in fantasy world that this is going to just keep on going.
We will see we are coming off a Bear Market Lows of 2009 and the cycle is running near the end of that Bear Low we have seen many times in various time frames starting back in the early 1900s how history repeats itself. Sustainability and job growth is key and keeping the asset bubbles from reoccurring again is the key.
Keep following the updates that www.StockMarketfunding.com puts out on the true story don’t listen to all the pundits out there and don’t become a victim to market manipulation again. Learn to make money investing and trading, join our SMF Pro Trading School there you will learn all the tricks and gimmicks that have been used again and again.
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Mario Marciano
SMF Lead Trader