“Lump of Coal or A Diamond for Christmas?” – Vista Partners Daily Market Recap 12/24/2018
The only thing the market got this year was a lump of coal as stocks continued their precipitous decline during Christmas Eve’s shortened session. The Nasdaq slid 2.21% (140.08 points) while the Dow plummeted 2.91% (653.17 points). To top it all off, the S&P 500 had entered a bear market by the time trading closed after dropping 2.71% (65.52 points) for the day. This comes after the Nasdaq entered bear territory on Friday, meaning both indices have tumbled over 20% from their highs earlier this year.
Every component of the Dow was down today with Home Depot (HD) having the best performance (if you can call it that) even as it lost 1.46%. The biggest loser was NIKE (NKE) with a whopping 5.90% loss, and Microsoft (MSFT) plummeted 4.17%.
Atossa Genetics (ATOS) bucked the trend and managed to rise 1.06% to end the day.
Treasury Secretary Steven Mnuchin called up the CEO’s of six of the US’s largest banks on Sunday to address concerns about liquidity. According to Mnuchin, “the banks all confirmed ample liquidity is available for lending to consumers and business markets.”
He also sought to quell rumors that President Trump had suggest firing Fed Chairman Jerome Powell over disagreement about the decision to hike interest rates. In two different Twitter posts, Mnuchin refuted these claims stating that the President had never considered that option.
Unfortuantely, Munchin’s efforts did nothing to calm nerves yet this week and instead futther alarmed investors as many had not considered that we had systemic problems and now seem to do so…yikes!
With all this in mind & at the risk of sounding like a broken record, the significantly leveraged & bearish electronically traded funds, TVIX & TZA (bets respectively against the broad market & the Russell 2000) were up significantly again today at the close, closing at $78.72 up +$6.64/share, +9.1% & $18.62 up +$.95/share, +5.38% and continue to provide an opportunity with the increased volatility of the markets and continues to serve as a diamond in the rough for many.
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
Stay Informed! Stay Competitive! Sign Up to receive FREE email updates here!