WTF happened today?
It’s not like Obama was not a lock from an electoral standpoint. Machines and smart people were predicting it. That means the machines on Wall Street had factored the electoral landslide in…No?
In the end, today is just another day and data point. If you spend anytime on my stream or Stocktwits you can find all the people, sources and data you need to invest and even trade.
The Bespoke guys had this great quick hit on the worst days for the market post election…did you remember that the S&P was down 5 percent when Obama won 4 years ago?
I have a friend named Curtis Faith who pinged me on Stocktwits yesterday with a few minutes left to the close and said…sell EVERYTHING (HERE is one of the quick exchanges) ?
He had my attention, but I would never yell fire. I am always long via entrepreneurs (people) or stocks (paper). I just can’t think like a trader at seminal moments.
Josh is not scared to yell fire and had this great post you should read about the economy.
I wear many hats and today as an investor and dip buyer in $GOOG and $AAPL I was trounced. I will clean myself off, kick my dog, take Max to play 5 holes of golf after this post and get ready for tomorrow.
Beyond the obvious soundbites though, what did we see happen today that are important:
1. Coal got hammered. They’ve been in a secular decline due to the exorbitant amount of natural gas found on U.S. soil over the past few years. They were starting to firm a bit and than BAM…
2. Gun stocks (RGE, SWHC and TASR) are among the few green dots on my screen. Nothing increases the appetite for guns than rumors of stricter gun control.
3. Politically, Fred had a good thought post up on demographics and the parties in general.
4. Patents are the new biotechs, meaning that they live in their own world. You could wake up one day 50% richer or 50% poorer. Today, $VHC holders are the winners.
5. Maybe Obama will actually do something nasty to a banker or two now that he can’t get elected again. The banks were brutalized today even though they were setting up so well and running hard into the election.
5. All eyes are on $AAPL. It is already down 20% from its all-time high of $705. It feels like a buy a here (so I have been buying and wrong), but I have been sharing many bearish opinions from others as I see them.
At Stocktwits, we saw a huge relative drop in sentiment for $AAPL on StockTwits before the most recent correction:
Today is really no surprise for the tape readers and patient traders. Congrats to a lot of people who have sidestepped this decline.