Ouch! Dow Drops 178 Points

Serves me right for boasting. Right after I tell you how well the Buy List has been doing for the year, we get smacked down today.

This was an ugly day of trading. All told, the S&P 500 dropped 2.05% making it the market’s worst day since August 11, 2010. Plus, oil gained more than 6% on tensions in the Middle East. Some are now talking about oil hitting $200 per barrel.

The S&P 500 is still holding above its 50-DMA. This was the 119th day in a row that the index has been above its 50-DMA. That’s the 10th-longest run since 1932. Tomorrow we’ll have a chance to tie the ninth-best streak which happened 40 years ago.

The Buy List dropped 2.25% today. Leucadia National (LUK) was especially hard-hit as it lost 5.93%. LUK owns a stake in Fortescue Metals Group and that company lost a court ruling last week. JPMorgan Chase (JPM) and Wright Express (WXS) were also hit hard.

Posted by on February 22nd, 2011 at 5:03 pm


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