Stock Market Record Intraday High Fades to a Loss

By: PhilStockWorld

Courtesy of Doug Short: The Nikkei was closed today for the Vernal Equinox, having posted a 0.72% loss for the week, but the Shanghai Composite soared 2.72%, erasing what would otherwise have been a fractional weekly loss. When the US markets opened, most European indexes had been trading higher and would close with modest gains, the EURO STOXX 50 up 0.25%.

The S&P 500 rallied at the open and set a record intraday high six minutes after the opening bell. The index then oscillated through the noon hour with selling accelerating after lunch. It closed with a modest 0.30% loss, thus missing an opportunity for a record close. However, the index was up 1.37% for the week.

The yield on the 10-year note fell 4 bps from yesterday, finishing the week at 2.75%. That was just above the middle its five daily closes, which ranged from 2.68% to 2.79%. The interim high yield was 3.04% at the end of 2013.

Here is a snapshot of the week.

As we can see on the daily chart, today’s volume was skewed by the quadruple witching trade.

The S&P 500 is now up 0.98% for 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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