FYI: Stocks staged wild swing on Tuesday, plunging lower in early afternoon trading after rising sharply early.
The SPDR S&P 500 (SPY) down 0.6% to $201.61 in recent trading, but had been up as much as 1.4% on the day, to $205.48, earlier. The 2% intraday swing has the CBOE Volatility Index is up 9.6% to 21.84. The iPath S&P 500 VIX Short-Term Futures exchange-traded note (VXX) is up 3.6% to 34.70.
Why? Attributing each tick in the S&P 500 to a specific data point or headline is dismal parlor game, but everybody does it anyway. Still, traders on Tuesday are passing around a wide range of theories that point to latent macroeconomic concerns. Read these theories as if they were the market’s answers to a Rorschach test.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2015/01/13/three-theories-for-why-stocks-reversed-lower/tab/print/
