Investors Selling the Start of the Q4 Corporate Earnings Season

By: PhilStockWorld

Courtesy of Doug Short: With Q4 earnings season ready to shift into high gear, the US indexes shifted into retreat. The S&P 500 opened fractionally lower, rose to its 0.06% intraday high an hour later. It then began a selloff that gradually accelerated to a -1.46% intraday low late in the day. Some buying the dip (or short covering) trimmed the closing loss to 1.26%, the worst daily close since the -1.32% decline on November 7th.

Here is a 5-minute look at today with a bit of Friday for context.

The yield on the 10-year note dropped 4 bps to 284%, which is 20 bps below the interim high at the end of 2014.

Volume on today’s selling was 17% above the 50-day moving average. The index is about 18 points above its 50-day price moving average.

The S&P 500 is now down 1.58% since its all-time high at the end of 2014.

Here is a longer perspective, starting with the all-time high prior to the Great Recession.

For a better sense of how these declines figure into a larger historical context, here’s a long-term view of secular bull and bear markets in the S&P Composite since 1871.

- Phil

www.philstockworld.com

Philip R. Davis is a founder of Phil's Stock World (www.philstockworld.com), a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders. Mr. Davis is a serial entrepreneur, having founded software company Accu-Title, a real estate title insurance software solution, and is also the President of the Delphi Consulting Corp., an M&A consulting firm that helps large and small companies obtain funding and close deals. He was also the founder of Accu-Search, a property data corporation that was sold to DataTrace in 2004 and Personality Plus, a precursor to eHarmony.com. Phil was a former editor of a UMass/Amherst humor magazine and it shows in his writing -- which is filled with colorful commentary along with very specific ideas on stock option purchases (Phil rarely holds actual stocks). Visit: Phil's Stock World (www.philstockworld.com)

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