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Stocks stumble late as Fed taper sinks in, Dow closes below 15K

  • Market recap: Stocks slid, clawed back to breakeven, then sold aggressively into the close as the Fed's most recent policy meeting failed to derail expectations for an early pullback in stimulus (I, II, III).
  • The Dow closed below 15,000 for the first time since July 3; the S&P ended negative, dragged by utilities and financials; techs held up relatively well.
  • Yields on the benchmark 10-year Treasury hit a fresh session high of 2.884% following the minutes before closing at 2.86%.
  • The dollar rose against most major currencies; already-battered emerging market currencies weakened further.
  • "Bottom line: Wall Street traders are angry and confused by today's release."
Comments (12)
  • bbro
    , contributor
    Comments (10149) | Send Message
    When are traders not angry and confused???
    21 Aug 2013, 04:17 PM Reply Like
  • Gosho
    , contributor
    Comments (58) | Send Message
    Is there anything new we've heard today?Why are the traders confused and angry, because we hear the same thing - the U.S. economy is recovering?I am from Bulgaria and I am sure if our country starts to get better most of us will be happy, but I guess smaller countries have weird thinking people.
    21 Aug 2013, 04:58 PM Reply Like
  • sethmcs
    , contributor
    Comments (3397) | Send Message
    What do you do when a herd of bulls are charging the wrong way? Get out of the way.
    21 Aug 2013, 05:27 PM Reply Like
  • NolanParker
    , contributor
    Comment (1) | Send Message
    Keep in mind those minutes were from a meeting 3 weeks ago so their analysis would still discount some of the recent data points. Despite that I give credit to the Fed for sticking to their thresholds and not showing any signs of moving away from QE until they are met. The fact that traders cannot wrap their head around that is not surprising given the stock market trades on where things are going not necessarily where they are.
    21 Aug 2013, 05:53 PM Reply Like
  • Hendershott
    , contributor
    Comments (1609) | Send Message
    What's the confusion?
    21 Aug 2013, 09:05 PM Reply Like
  • hannan98
    , contributor
    Comments (164) | Send Message
    hendershott, I am sure you are smarter than that. they are confused because they do not know which way to place their bets. if they get it wrong, then how will they afford their ferrari's and penthouses in manhattan?
    21 Aug 2013, 09:12 PM Reply Like
  • markrpat
    , contributor
    Comments (216) | Send Message
    Bottom line..."..traders confused and angry". Buy a clue. Computers do not get angry, and are never confused.
    21 Aug 2013, 09:24 PM Reply Like
  • Hendershott
    , contributor
    Comments (1609) | Send Message
    Sometimes the algorithms get conflicting inputs. Kind of like HAL, somebody could get killed here.
    21 Aug 2013, 10:12 PM Reply Like
  • Hendershott
    , contributor
    Comments (1609) | Send Message
    NasDaq down....somebody's computer got confused.
    22 Aug 2013, 02:35 PM Reply Like
  • Hendershott
    , contributor
    Comments (1609) | Send Message
    The market doesn't often provide sure bets, but the Fed will begin tapering next month. They've as much as sent telegrams to everyone. It doesn't matter whether anyone agrees or not. Tapering begins next month, barring some sort of disaster. As to what exactly gets tapered, and by how much, everyone has to wait and see. How the market reacts is another question entirely. To me it's starting to look like a set up. Everyone has sold or hedged their fixed income, sold their emerging market debt, bailed on their ETF's and ETN's. You could correctly bet on tapering and get your face ripped off.
    21 Aug 2013, 09:34 PM Reply Like
  • KJP712
    , contributor
    Comments (454) | Send Message
    The summer will be extended into November for the Hampton's Crowd.Then they will ride in on their white horses to " Save " Wall Street before Christmas.Then fire some junior traders after the New Year for the September Slip-ups.The script does not change much only the actor's faces do.
    21 Aug 2013, 11:47 PM Reply Like
  • swashplate
    , contributor
    Comments (116) | Send Message
    I will make this simple. The S&P and DOW will go below the 200 day MA, what day not sure. If the S&P and DOW stay below the 50 ma we should be there sooner than later. I think the S&P will go below $1573.00 and DOW below $14500.00. If you got profits take the money now before it gets lower, then after the market goes below the 200 ma look for price action to find a place to get back in.
    Look at the 20, 50 and 200 ma crosses in the S&P in history, clear signals at where price action is going.
    I bought SDOW last week of July.
    22 Aug 2013, 04:20 AM Reply Like
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