This morning, like yesterday morning, was off to another great start for the bulls. Stocks were soaring and seemingly every stock was up 2% or 3%. You know the market is roaring when even $GOOGL/$GOOG is up over 1.5%. And then the market started to pull back around lunchtime stock futures started to look decidedly bearish. Just like yesterdays pre-market head and shoulders presaged a sharp decline, the topping pattern from the first 2.5 hours of trading was starting to flash some warning signs.
I shared a chart in the chat room, on stocktwits.com and on twitter noting the potential for another swift decline.
Sure enough, the markets cratered. The bottom fell out. All hell broke lose. The world came to a screaching halt. Everything was changed forever.... ok well everything except the last three. Support was lost, and the $SPY came very close to plunging below the key $200 level.
The selling surpassed that of Friday's session, yet as the market plunged to new lows on the day....the market did a strange thing. Something we haven't seen too often the last five years (cue the sarcastic laugh)... the market bounced.
As the previously flopping like its Friday market bounced, the twitter and stocktwits sphere was aglow with astonishment.
In perhaps the Tweet of the Year, thus far, The Real Fly.... as if there were any other type of fly, the Master and Commander of http://www.ibankcoin.com declared that if the market were to close in positive territory a human sacrifice will have to be made.
The list of sacrificee's were of people not following @The_Real_Fly on twitter, so perhaps that is something to do, just in case you aren't following yet.
The tweet, while obviously sarcastic.... I think... or hope.... puts into a nutshell what this market has been doing in 2015. You know what they say? Be careful what you wish for. Most of 2014 was spent wondering why the VIX was so low, while 2015 has seen the VIX rally and stocks trade erratically throughout the day.
I'll take large movement in the market, but can we please have it either up OR down and not both.
Last year was like dating that boring girl in High School who you were lucky to get a kiss from. 2015 is like you asked that same girl to liven up and she went out and slept with the whole football team.
What will tomorrow bring?
I think I've said it a few times already in previous 2015 recap, but I'll say it again....tomorrow.... drum roll please..... in the voice of a well renowned market commentator from a once popular business news program......expect more volatility. There... you have it. I guess I could have drawn one of those charts that have both an up and a down arrow on it. But then the market would be back to trading flat again.... and no one likes a flat market....never.