T3’s Take 3: The Return of Fear!?

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1. Social Media Showdown

Between after the close yesterday and before the open today, Facebook (FB) and Twitter (TWTR) reported earnings.

They both exceeded expectations with FB reporting an eps of $1.32 vs the $1.13 expected and TWTR coming in at $0.12 vs the $0.05 expected.

So they why did FB open close up, 2..92% while TWTR ended the day down, 14.13%.

As they saying goes, the devil is in the details.

FB reported 70 million new users while TWTR’s number of active monthly users came in lower-than-expected. In fact, it was unchanged from the prior quarter. In addition, TWTR’s advertising revenue also fell while FB saw a 50% increase in just mobile ads.

Given today’s weakness, TWTR is back below the 8, 21, and 200 emas on the daily.

2.  The Return of Fear!?

On the heels of strong earnings from Facebook (FB) among others, the markets opened higher, setting new all-time highs. Again.

That all changed mid-day.

For seemingly no reason, not that there needs to be one, the markets begin to fall. Normally, this would not be a big deal. Markets pullback all the time however, this one felt a little different. There seemed to be a little more fear this time.

At the same time the VIX left the launch pad like a NASA shuttle headed into outer space going from 9.23 to 11.50. Ultimately, the VIX closed up, 6.77%.

One of the hardest hit sectors of the day was the Transportation ETF (IYT) which closed down, 3.06% with airlines generating the brunt of the weakness.  

3. Where Gold Is Headed From Here…

Today, my colleague Jeff Cooper discussed the recent action in Gold.

He highlighted the fact that it is testing resistance but that may not mean it is headed lower.

Click here to read more.

 

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