More of the Same

The market is moving lower, and once again, the cyclical stocks are getting hit the hardest. In fact, the divergence between cyclicals and the rest of the market appears to be accelerating.
The Dow Oil & Gas Index (^DJUSEN) is down another 10 points today to 444. Remember, this index just recently tried to break 500 on three occasions. Materials stocks are also being punished. The rest of the market is only down slightly. The Brazilian iShares (EWZ) are down over 8% today.
The Buy List is again ahead of the broader market (meaning, not down as much). Lowe’s (LOW) had a good earnings report today. The company earned $1.06 a share, which was 12 cents higher than estimates. Shares of LOW are higher, and HD is lower.
The VIX (^VIX), the market’s volatility index, is much higher today. Believe it or not, they are people who “trade” volatility, and volatility bulls are very happy today. The VIX is up to 19. It was at 13 before last week’s CPI report.
Finally, I noticed these two articles in the British press:
‘Is this a crash like 1987? No chance!’
Markets ‘are like 1987 crash’

Posted by on May 22nd, 2006 at 11:11 am


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