Do You Buy: Panic Sends Markets Down
The markets opened flat and started selling. After collapsing in the first hour of trading on comments out of Europe and panic in the United States, the markets caught a significant bid, surging towards the flat line. After almost achieving a neutral standing, the markets have starting to come back down. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $124.57, -0.92 (-.73%), the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) are trading at $56.14 -.13 (-.23%) and the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at $117.45 -1.01 (-.85%).
The fear is palpable today in the markets. Wall Street traders are shaking in their boots. However, the VIX is not confirming this move. This is a major divergence and must be watched closely. The VIX is a volatility indicator and fear index. With it not confirming the move down in the markets, it may signal a sharp move on the horizon. To follow the VIX, watch the iPath S&P 500 VIX Short-Term Futures ETN (NYSE:VXX).
The winners today are Research In Motion Limited (USA) (NASDAQ:RIMM) which is trading at $25.02, +0.87 (+3.60%) and MasterCard Incorporated (NYSE:MA) which is trading at $322.67, +24.18 (+8.10%). MasterCard is trading sharply higher on solid earnings.