Seeking Alpha

Stocks slip again as investors focus on Fed, D.C. wrangling

  • Stocks extended losses from late last week as investors were unsettled by Fed policy intentions and wrangling in Washington over the budget and the debt ceiling.
  • The Fed's Dudley said the pace of economic improvement is insufficient and too uncertain for the Fed to pull back now, but traders see a cut to bond purchases coming sooner or later.
  • Apple gained 5% after weekend iPhone sales eclipsed analyst estimates (I, II), which also helped shares of Apple suppliers, and BlackBerry added 1% after getting a $9/share offer, but techs overall fared little better than other sectors.
  • Treasurys continued to gain after last week's Fed decision, as the yield on the 10-year note fell to 2.707%.
Comments (6)
  • Marco Mazzocco, CFA
    , contributor
    Comments (175) | Send Message
     
    any thoughts on how the S&P looks technically now ?
    23 Sep 2013, 05:06 PM Reply Like
  • ThetaDecay
    , contributor
    Comments (107) | Send Message
     
    I've positioned myself net bearish (slightly) for the upcoming weeks. If we break convincingly below the 1670-1680 range, I'll add to my short exposure. If we close above 1725.52, I'll turn net bullish.

     

    Looks like we got a blow-off after the no-taper announcement, and with a possible debt default in mid-October looming, a stalemate between the White House and Congress might cause the markets some distress. They might be able to work something out, but we saw in August of 2011 just how stubborn they are (and the ramifications of that stubbornness).

     

    Picking up some cheap hedges while IV is down might not be a bad idea.
    24 Sep 2013, 01:14 AM Reply Like
  • buyandhold???
    , contributor
    Comments (907) | Send Message
     
    $5 says we raise the debt ceiling and keep printing money like there is no tomorrow. See you at dow 17,000 by christmas. Our dollars may be worthless but my portfolio will be booming
    23 Sep 2013, 08:26 PM Reply Like
  • lildimsum7
    , contributor
    Comments (571) | Send Message
     
    by some miracle, my portfolio is up 1.5% today
    23 Sep 2013, 10:19 PM Reply Like
  • ThetaDecay
    , contributor
    Comments (107) | Send Message
     
    Let me guess... you own Apple?
    24 Sep 2013, 01:22 AM Reply Like
  • lildimsum7
    , contributor
    Comments (571) | Send Message
     
    Yes. Now that I think of it, that was my biggest contributor. It's currently about a 2.5% position. Jan 14 500s call
    24 Sep 2013, 02:35 AM Reply Like
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