Schaeffer's Trading Floor Blog

Good Morning

by 5/11/2005 8:03 AM
Stocks quoted in this article:

We follow yesterday's drubbing with some indecisive futures action. With an hour and a half until the open, S&P futures sit about 40 cents above fair value, which indicates a flat open. Oil is down 49 cents to 51.58. Gold is up 80 cents to 428.70.

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Final Figures

by 5/10/2005 5:27 PM
Stocks quoted in this article:

Despite a midday buying attempt, the major indices finished the day with moderate losses...

Index Index Value Point Change Percent Change
S&P 500 (SPX) 1166.2 -12.6 points -1.07 percent
Dow Jones Industrial Average (DJIA) 10281.1 -103 points -1.0 percent
Nasdaq Composite (COMP) 1962.8 -16.9 points -0.85 percent
Russell 2000 (RUT) 595.0 -7.9 points -1.31 percent
CBOE Market Volatility Index (VXO) 14.17 1.56 points 12.4 percent

The COMP fared slightly better, but for the most part we see consistent declines among the indices. The graph below echoes that consistency...

Here we see a very similar picture to what saw this afternoon which of course was similar to what we saw this morning. In other words, we have seen heavy, steady, broad-based selling...

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CSCO

by 5/10/2005 4:29 PM
Stocks quoted in this article:

Cisco's numbers are out...It looks like they beat EPS estimates by a penny and the stock appears to be up a few cents from its 4:00 PM close. However, we will have to wait for the comments from CSCO's management to get a better feel for how the shares will react...


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Into the Close

by 5/10/2005 4:07 PM
Stocks quoted in this article:

The bulls made a late-day push...or the bears merely got tired of hitting the sell button...as the SPX staged a small bounce into the close...


Chart Courtesy of Thomson/ILX

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Stocks quoted in this article:

Continuing the discussion on risk, Chris says - "While a hedge fund may be in trouble, a glance at the charts indicates today's pressure is more likely the result of indexes bumping their heads. After yesterday's close, the indexes: Dow: hit 200 day m.a. S&P: hit 50 day m.a. NASDAQ: hit both 50 & 200 day I, too, am watching for signs of hedge fund blow-ups because of the serious threats they pose to the markets. For those interested, a good article for review of the LTCM debacle can be found at: http://www.erisk.com/Learning/CaseStudies/ref_case_ltcm.asp I think (speculating) that we should watch for hedge fund trouble if there are destabilizing problems globally (currency problems like the ruble in LTCM's case causing a flight to quality). Or, within the US, serious de-valuations in the market value of assets (since hedging is linked to the market value of assets - not necessarily the real value of assets). For instance, market values for property seem to be extremely inflated. What will happen if and when they start to fall? Or, what will happen if and when the dollar resumes its tailspin? Serious shifts in market values could cause money to start to move rather quickly. I don't think that's happening today, even if a large hedge fund is selling. "

My response - Interesting thoughts. Thanks for the link!

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