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MARKET VOLATILITY ON STEROIDS

|Includes:AAPL, AMZN, BAC, C, DJP, EEM, EFA, EPI, EWA, EWC, EWG, EWJ, EWY, EWZ, FDN, FXE, FXF, FXI, FXY, GLD, IBM, IEF, IGV, INTC, IWM, IYR, JJC, JJG, KO, MCD, MSFT, QQQ, RSX, SLV, SMH, SPDR S&P 500 Trust ETF (SPY), TLT, UGA, USL, UUP, XLB, XLE, XLF, XLI, XLK, XLV, XLY


 

Monday: the DJIA was down over 635 points. Tuesday: we swung around by 600 points intraday to close 430 points higher. This is the stuff that drives investors like ("Former") Chief Inspector Dreyfus nuts. There was much consternation following the Fed's decision regarding interest rates. The markets liked the commitment to extend current interest rates for 2 more years but were dismayed by 3 dissenters. This took the indexes sharply lower after being up 200 points early. Then, from the abyss, buy programs were launched. And, if ever there was the hand of the PPT (Plunge Protection Team) involved, today would've been the day. After all this is the most activist, market oriented and interventionist Fed and Treasury the country has ever seen. So let's not kid each other or dismiss this possibility.

Who had the "cash" to buy today? It certainly wasn't mutual funds which had ultra-low levels of cash needed to meet massive redemption requests. Hedge funds? This is a possibility but previous rock stars like David Tepper told everyone who could hear to "sell everything". Previous hedge fund king John Paulson's large fund has been liquidating underperformers throughout this period. Overseas investors remain a distinct possibility. Hell, one guy wrote me yesterday saying he was so upset he sold his "cash"! LOL!
 

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