Political instability, economic uncertainty, and a company called Facebook (FB). For about the 6th day of trading the markets hit their low at 11:00 am (eastern) when the Euro markets close, then rebounds into the day. However today we gave most of that intra day rally back at the close.
The market knows where it needs to go, but so many macro factors are keeping it in a holding pattern. Today we had a great analogy of the market. The new French President’s plane while en-route to Germany for talks between Angela Merkel and Francois Hollande got struck by lightening and had to turn back around, land, get a new plane, and head back to Berlin.
In terms of Greece it is looking more and more likely that the country will have to leave the Euro. The question is when and how…
Facebook raised their IPO price range to $34 – $38 a share. Most likely we will see a big pop on the first day with some traders saying $50 might be on the low end. D&D would advise not buying the IPO on first day of trading, or even the first few weeks of trading.
Many traders are selling their tech stocks like Apple (AAPL) ahead of the Facebook IPO to free up cash to buy the social networking company. Many people already in on the IPO will probably flip the stock and take the quick profit. Watch for a turnover after the IPO back into those tech stocks that have been getting sold off.
Oil and Gold continue their slide. Oil fell 80 cents to $93.98 a barrel and Gold slipped $3.90 to $1,557.10 an ounce.
The Dow ended the day down .44% at 12,639.42, the Nasdaq fell .26% to 2,895.05, and the S&P 500 was down .51% to 1,331.49.
The S&P 500 finally broke through a key resistance level today and the next level is around 1,325 and traders will be watching that level very closely in tomorrows trading session.