Markets closed down on Wall Street: DJI -0.38% SP500 -0.62% Nasdaq -1.63% Gold -0.25% Oil -2.62%.
Markets started the day down, climbed back, and as soon as the Nasdaq (NASDAQ:QQQ) got to par traders sold the remainder of the day. On the commodities front, Oil (NYSE:USO) had the same pattern as it kissed $99 a barrel then sold off to $97. Gold (NYSE:GLD) ended the day below $1,500 an ounce, and Silver (NYSE:SLV) got slammed over 4% after rising over 3% last Friday. Is Silver a Bubble Bursting Now?
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Today’s markets were down because:
1) IMF Chief Abuses Position. Dominique Strauss-Kahn is facing 7 counts of sexual assault related crimes. Since the man is completely replaceable, we’re not sure why this should matter to markets. Regardless, the juicy tabloid-style news sparked lots of hot air about what will happen to the EU’s handling of the debt crisis. We’re sure they’ll get on fine without ole’ Strauss-Kahn.
2) Tech picked up where it left off on Friday. Clearly, the bubblicious activity in Silicon Valley is cooling a bit. Yahoo (NASDAQ:YHOO) got taken to the shed again — down 4.4% — and fell below the technical $16 mark. Investors are still shocked about the lack of control and awareness regarding major Yahoo assets such as Alibaba. This means people are scared there’s more roaches in the hotel. But Indian internet company Rediff.com (NASDAQ:REDF) has it worse. The company was down over 20% today. Baidu (NASDAQ:BIDU), Google (NASDAQ:GOOG), eBay (NASDAQ:EBAY), AOL (NYSE:AOL), Sohu (NASDAQ:SOHU), and IACI (NASDAQ:IACI) all got slammed as well as it seems traders are working a “short internet” strategy. At least Wall St. Cheat Sheet expert contributor (and Board member) Larry Kramer has some great ideas how Yahoo can preserve their audience and increase cash flow.
3) The US has hit the debt limit. US Treasury Secretary Tim Geithner rang the death knell this morning as the US officially crashed into the legal debt ceiling. Maybe that’s China (NYSE:FXI) has been dumping US Treasuries 5 straight months. Should we be scared? Forbes editor John Tamny gave Wall St. Cheat Sheet an exclusive first look at why irony is dripping from Geithner’s “Economic Catastrophe” rationale for raising the debt ceiling.
Now that you’re in the know, imagine what it would be like to have won Survivor!