Suitably Flip

Nosedive

It was a clunker of a day on Wall Street, with the major indices all selling way off in the first full trading session since Thanksgiving.

Despite the unexpectedly strong 6% surge in Black Friday shopping over 2005, some weak comparison data at Wal-Mart managed to sour the whole deal.

The sell-off marked the worst single trading day since mid-summer, with the Nasdaq faring worst, having pushed more than 2% lower by the close.

Me, I think it's all a little overblown and possibly a case of year-end jitters.  The extended market run-up in recent months may have led to a bunch of itchy fingers that were waiting for an excuse to pull the trigger and reduce some positions, lest a freefall erode the healthy gains about to be locked in for 2006.

If so, then a few moderately sunshiney catalysts ought to help recapture today's lost ground.  And if the 24th was Black Friday and today is Cyber Monday, tomorrow might aptly be called Catalyst Tuesday.

New data on durable goods, consumer confidence, and existing home sales, plus speeches by Ben Bernanke and Treasury Secretary Hank Paulson should keep things lively in tomorrow's trading.

Comments

Nosedive

It was a clunker of a day on Wall Street, with the major indices all selling way off in the first full trading session since Thanksgiving.

Despite the unexpectedly strong 6% surge in Black Friday shopping over 2005, some weak comparison data at Wal-Mart managed to sour the whole deal.

The sell-off marked the worst single trading day since mid-summer, with the Nasdaq faring worst, having pushed more than 2% lower by the close.

Me, I think it's all a little overblown and possibly a case of year-end jitters.  The extended market run-up in recent months may have led to a bunch of itchy fingers that were waiting for an excuse to pull the trigger and reduce some positions, lest a freefall erode the healthy gains about to be locked in for 2006.

If so, then a few moderately sunshiney catalysts ought to help recapture today's lost ground.  And if the 24th was Black Friday and today is Cyber Monday, tomorrow might aptly be called Catalyst Tuesday.

New data on durable goods, consumer confidence, and existing home sales, plus speeches by Ben Bernanke and Treasury Secretary Hank Paulson should keep things lively in tomorrow's trading.