The Bears ran today on the uncertainty surrounding the labor market. With Initial Claims data higher than expected and the Governments report on labor tomorrow, the markets decided the prudent path is to book profits.
Other events that drove values lower today:
- Debt levels in Europe
- Debt levels in the USA
- Concerns on credit ratings
- US Dollar strength
Earnings from CSCO fell to the sidelines as the longer term economic recovery remains uncertain.
Technical movement suggests that selling pressure can continue, but that trend will be dependent on the release of labor numbers tomorrow.
Sentiment pushed VIX levels up 4.5 points today to over 26 and Put/Call ratios put fear squarely on the markets as it ended at 1.06.
With bullish strategies in play it may be time to consider adjustments, or protective positioning for long calls or long stock positions.
Summary: Market trends will look to establish support and many find it quickly if fundamental data shows strength, otherwise expect values to continue to correct and move lower.
Register to join us in a webinar: Adjusting the Long call or Long stock. 1hour on Feb 11 @ 4:00 pm Pacific time.
Disclosure: No positions