The talking heads are reminding the traders that today is the 25th anniversary of "Black Monday". That was the day in 1987 that the Dow sold off 20% in one day.
There were some poor earnings out. Google's little mishap caused a large part of yesterdays weakness and it carried over to today. CMG was weak on poor earning also, I think I heard them say. I haven't followed the Chipotle story. I have never seen a Chipotle where I live. When they said today that they were a competitor of Taco Bell it made me wonder why a fast food taco joint could be held to such high value... Looking at the chart now it looks like it had quadrupled over the last couple years.. DOH!
Todays selloff is the biggest in a few weeks. Unless we get a late day rally. I am always suspect of any move that happens on an anniversary that is widely publicized. I think it will be more of the rotation out of tech and retail and into gas, metals, and real estate. Real stuff. But time will tell, of course.
A couple things have caught my eye.
One is the difference between Silver Wheaton and SLV the silver ETF... I have for quite some time considered SLW to be the "adult" in the room where silver speculation was considered.
Another thing: TBT, the short bond fund was revalued on Oct. 5. They did a reverse stock split. 4/1. The price went from $15 to $60... The volume went up however. At least looking at the chart it shows that there are more shares trading than before. To take that at face value I would consider that there is a lot more big money interested in shorting long bonds than in buying them. When comparing TLT to TBT.. And TLT looks like it is finding support on the old ceiling. It may turn up, but it looks weak to me so far. Look out if it falls through the ceiling! We'll see.