Oh-so-many traders have been bracing for a selloff, and now the S&P looks set for its biggest weekly setback in nine months.
It’s thanks in large part to North Korea fears that haven’t gone away yet. But this market was also way overdue for a daily drop of 1% or more — that’s the suggestion from this chart shared by DailyFX’s John Kicklighter:
— John Kicklighter (@JohnKicklighter) August 10, 2017
But it’s no time to be chicken, according to all sorts of pundits. It’s never a good idea to sell into a panic, says MarketWatch’s Mark Hulbert. Meanwhile, CrackedMarket’s Jani Ziedins says “don’t lose your nerve now,” doubling down on his comment from a couple of days ago (that seems to be a thing this week).
“If you don’t think the U.S. will start a war with North Korea, then this is a better place to be buying stocks than selling them,” Ziedins writes. “Many of us have been praying for a buyable dip. Here it is.”
One set of stocks worth buying is names tied to “the hottest commodity in the world,” says our call of the day, which comes from OilPrice.com’s Joao Peixe.
Higher demand for lithium is guaranteed, but supplies might be constrained, Peixe writes over at that site focused on energy news. Demand is expected to keep coming thanks to lithium batteries, the key component in all those electric vehicles that Tesla and its rivals have promised to make.
There are five stock plays that Peixe recommends for betting on the soft, silvery-white alkali metal: Charlotte-based specialty chemicals provider Albemarle
, Canadian producer Southern Lithium
, Chilean chemicals giant Sociedad Quimica y Minera de Chile
, the Global X Lithium ETF
and, of course, Tesla
“Three companies currently control most of the entire world’s supply of lithium, and Albemarle is the biggest play here,” Peixe says.
Josh “The Reformed Broker” Brown also recently noted that Albemarle has caught his eye as a play.
Southern Lithium looks poised to capitalize on “a major lithium volcano” in Argentina, and SQM is the world’s largest producer of the commodity, the OilPrice.com post says. (SQM also is the No. 1 producer of iodine, used to fight nuclear radiation).
Go here to read the full post.
Key market gauges
Futures for the Dow
, S&P 500
are modestly lower after yesterday’s drubbing. The Dow
and Nasdaq Composite
are all on track for sizable weekly drops, with the S&P facing its biggest such fall since the week ended Nov. 4.
It’s been a sea of red in Europe
and Asia. Oil
is lower after the IEA said global supplies rose again. Gold
and the dollar
are a little higher.
See the Market Snapshot column for the latest action.
“China should also make clear that if North Korea launches missiles that threaten U.S. soil first and the U.S. retaliates, China will stay neutral.
“If the U.S. and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so.” — An editorial in China’s state-run Global Times adds to the tensions.
OfTwoMinds.com writer and bitcoin bull Charles Hugh Smith is talking about more big gains for the cryptocurrency as he shares the chart above.
“Notice the previous two periods of volatile upswings and downdrafts. The 30+% swings appeared monstrous at the time, but looking back, they look more like blips,” he writes.
“What will the current dramatic run-up, sharp decline and new high above $3,400 look like from the heights of $10,000?”
Mainstream folks misunderstand bitcoin
in a number of ways, Smith says. Such as? They’re missing “the potential role of bitcoin in preserving the wealth of the very elites who best understand the weaknesses of the present financial system,” he says.
look set for big down days after their earnings late yesterday.
One highlight from Snap’s conference call was an analyst caught saying “I didn’t even understand his response!”
appears on pace for again after its results, and rival J.C. Penney
is on the earnings docket before the open.
founder Jeff Bezos has dropped back to world’s third richest person thanks to the market selloff, Bloomberg notes.
Another selloff-related move: The VIX
— that barometer of fear — has been awakened from its slumber.
canceled a diversity meeting, citing harassment concerns.
China’s internet regulator is investigating whether social-media platforms run by Baidu
hosted terrorist, porn and fake content posing a threat to public security.
On the economic front, a key figure is due before the open — a reading on inflation.
Check out: MarketWatch’s Economic Calendar
In terms of Federal Reserve chatter, the Dallas Fed’s Rob Kaplan and the Minneapolis Fed’s Neel Kashkari are due to speak once trading is underway.
ThronesWatch: HBO tries to get $250K in bitcoin to pay off Game of Thrones scripts thieves.
Meet Sarahah, the hot anonymous-gossip app for teens.
Twitter users love this headline inspired by a crime-fighting bird:
— Anthony Devitt (@AnthonyDevitt) August 11, 2017
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