Bad news, bad news and more bad news – that’s what happened from the opening till the closing bell on Wall Street. It was as if the Dow Jones was released from the cage after years and bloods are all it needs. That’s right, the Dow plunged almost 360 points to their lowest level in almost two years and bloods are all over the trading floor. The Dow dropped 358.41 points (3.03 percent) to close at 11,453.42 – its lowest finish since Sept. 11, 2006. Nasdaq followed and tumbled 3.33 percent or 79.89 points to 2,321.37.
The bad news – OPEC President Chakib Khelil told a French television station that oil could rise to between $150 and $170 per barrel this summer before pulling back later in the year, instantly sent the oil futures past $140 a barrel (140.39 in after-hours trading). The goods news – Khelil said the oil prices will unlikely to reach $200 a barrel. Libya poured fuel into the fire by saying it may cut oil production. As expected investors ran helter-skelter finding shelter in Treasury bonds. Not to be left out technology sector added spices to the already bearish market when Oracle Corp. and BlackBerry maker Research In Motion Ltd. warned that the traditionally slow summer months could prove particularly difficult this year.
Citigroup Inc. and Merrill Lynch & Co. were punished after a Goldman Sachs analyst cut his rating on the stocks to “sell”. Goldman warned investors and traders to expect less from the financial especially the brokerage sector in the current economy climate. Yeah right, as if we do not know. Goldman Sachs also gave automotive industry a kick when it cut General Motors Corp.’s rating from “Neutral” to “Sell” saying things could still get worse for the North American automotive industry as a whole. The Detroit-based automaker immediately saw its shares plunged to their lowest price in more than 33 years to close at $11.43 or 10.77 percent lower while Ford shares hit another 52-week low.
The greedy me didn’t let go of a suppose-to-be scalp position on AAPL Aug 175 Put Option yesterday. Who can blame me when the market was one hell of havoc?
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