Understanding And Profiting From The Stock Market Swings

The wild stock market swings continue, all thanks to Europe. The markets opened sharply lower on the back of more Italian woes. Yields on the Italian 10 year broke 7%. This is what started the Greek debacle and will be the ultimate cause of every other PIIGS country downfall. Most retail investors do not understand the how the yields determine the collapse of a country. Simply put, when a country is so heavily in debt and must borrow, rising borrowing costs trigger the beginning of the end.

Oil is ripping higher today. The United States Oil Fund LP (ETF) (NYSEARCA:USO) is trading at $37.63, +0.20 (+0.53%) . While this may not seem like a major move, the USO traded as low as $36.49 this morning before a major reversal. This reversal is coming on the back of continued concerns over Iran's nuclear ambitions as well as an oil inventory report which was bullish. Looking at the chart from a technical standpoint, the USO hit the 200 moving average today. This should be resistance, short term.

The biggest losers today are the financial stocks. This makes sense due to the possibility that Italy will default or bond holders will at least take a 50% haircut like they did in Greece. The exposure banks have to Europe is somewhat unknown, shown by MF Global's panic bankruptcy. Continued worry will persist from Europe. Stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), Wells Fargo & Company (NYSE:WFC) are all sharply lower.

Gareth Soloway
InTheMoneyStocks

Comments (7)

Nov 9, 2011 - 1:07pm
WallStreetOasis.com, what's your opinion? Comment below:
Brady4MVP:
Please change the title of your thread to "Shamelessly plugging for my website"

hey brady - i've invited some bloggers to share their commentary on the stock market and trading ideas to get more dialogue on this...it's called syndication and I don't think it hurts the forums to bring in more trading / market conversations.

See STW's thread here as an example of discussions we're trying to encourage: //www.wallstreetoasis.com/forums/what-is-your-personal-portfolio-make-up-and-theme

Nov 9, 2011 - 1:41pm
UFOinsider, what's your opinion? Comment below:
WallStreetOasis.com:
Brady4MVP:
Please change the title of your thread to "Shamelessly plugging for my website"

hey brady - i've invited some bloggers to share their commentary on the stock market and trading ideas to get more dialogue on this...it's called syndication and I don't think it hurts the forums to bring in more trading / market conversations.

See STW's thread here as an example of discussions we're trying to encourage: //www.wallstreetoasis.com/forums/what-is-your-personal-portfolio-make-up-and-theme

whoops, is username "oilprice" one of those? I'll back off if so. I tend to bust on him a bit. Ok, a lot. Like every post. Sometimes multiple times a post.

This is pretty cool, do you have a list of affiliated sites compiled?

Get busy living
  • 2
Best Response
Nov 9, 2011 - 5:17pm
justin88, what's your opinion? Comment below:
WallStreetOasis.com:
hey brady - i've invited some bloggers to share their commentary on the stock market and trading ideas to get more dialogue on this...it's called syndication and I don't think it hurts the forums to bring in more trading / market conversations.

If you want to have bloggers, that's fine, but please understand that blogs and forums serve different purposes and should be kept distinctly separate. Please keep the blogging out of the forums, especially these trading/market commentary-type blog posts which are notoriously devoid of intelligent thought and obsolete 15 minutes after being written.

Syndicated content should also be clearly marked as such. In this particular case, whoever wrote this demonstrates no understanding of why Italian bond yields are surging, why "the USO" (lol) surged, and demonstrates a poor grasp of the English language. For a forum for wall street traders (and wannabes), this is spam.

Nov 9, 2011 - 1:58pm
WallStreetOasis.com, what's your opinion? Comment below:

@UFO - yes, oilprice has been around for a while though...we just recently started bringing in more writers.

We're adding them slowly to gauge reaction. We usually give a syndicated blogger a few shots at the home page to see if people like it. If not, then we usually keep them in the forums or off the home page unless they gain traction (and then promote).

We don't have an official list yet, but we can work on putting one together once the list is a bit more stable....

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Mar 28, 2020 - 4:05pm
MayBernadette397M, what's your opinion? Comment below:

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