Stocks turn sharply downward

Major indices are lower this Wednesday morning, as traders experience a painful moment of clarity in the midst of a sustained euphoria that has come to border on frenzy. The trigger today was the news that China was re-evaluating its buying of US Treasuries. That, of course, is serious—a threat to the market’s jugular vein. United Continental (UAL) is up 4.35% after reporting an increase in traffic.

At present, the S&P 500 is down 0.39%, the DJIA is down 0.34%, and the NASDAQ is down 0.56%. West Texas Intermediate crude is trading at $63.37. Bitcoin is at $14,011 on Bitstamp.

Industries doing well today include airlines, metals & mining, and banks. Industries showing weakness include personal products, leisure products, and life sciences. The VIX is up 3.8% to 10.46 after closing on Wednesday at 10.08. The most heavily traded options this morning are for the iShares iBoxx $ High Yield Corp Bd ETF (HYG), 18,363 February-16 87 puts on the board. The total put/call ratio as of 10:00 AM was 0.85 (476,644/406,136) The advancers/decliners ratio for NYSE stocks is 843/2,038 while the advancers/decliners ratio for NASDAQ stocks is 940/1,832.

Symbols: HYG UAL
Julian Close

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.

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