Geopolitical Event Tanks the Stock Market :: The Market Oracle …

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Geopolitical Event Tanks the Stock Market

Stock Markets 2014Jul 18, 2014 – 01:31 PM GMT

Courtesy of Doug Short. The apparent missile attack that brought down a Malaysian Airlines passenger jet with 295 passengers and crew also tanked today’s markets. The Eurozone’s Stoxx 50 fell 1.41%. The US markets also closed in the deep red with the S&P 500 down 1.18%, fractionally off its 1.31% intraday low about 15 minutes before the final bell. A CNBC afternoon news item puts takes a glass-half-full perspective with in a piece entitled “Market reaction to Malaysia jet crash could be short-lived“.

Today’s 1.18% decline was the biggest drop since the 2.09% plunge on April 10th.

The yield on the 10-year note ended the day at 2.47%, 8 bps below the previous close. It is now only 3 bps above its interim closing low of May 28th.

Here is a chart of the last five sessions. The index is up 5.94% year-to-date and 1.38% off its record close on July 3rd.

Here is a daily chart of the index. Volume was 27% above its 50-day moving average, but slightly below the 31% above yesterday.

For a longer-term perspective, here is a pair of charts based on daily closes starting with the all-time high prior to the Great Recession.

– Phil

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Philip R. Davis is a founder of Phil’s Stock World (www.philstockworld.com), a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders. Mr. Davis is a serial entrepreneur, having founded software company Accu-Title, a real estate title insurance software solution, and is also the President of the Delphi Consulting Corp., an M&A consulting firm that helps large and small companies obtain funding and close deals. He was also the founder of Accu-Search, a property data corporation that was sold to DataTrace in 2004 and Personality Plus, a precursor to eHarmony.com. Phil was a former editor of a UMass/Amherst humor magazine and it shows in his writing — which is filled with colorful commentary along with very specific ideas on stock option purchases (Phil rarely holds actual stocks). Visit: Phil’s Stock World (www.philstockworld.com)

© 2014 Copyright PhilStockWorld – All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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