• Home
  • Meet Scott
  • My Gut Feeling
  • In The Media
    • Financial Expert Scott Rothbort On TV
    • On The Radio
    • Facebook Feed / Upcoming Media Appearances
    • Stock Trading Commentary On Scutify
  • Private Wealth Management
    • Scottrade Adviser
    • Investment Strategies
    • Integrated Wealth Management
    • Financial Retirement Planning
    • Selling Of Business
    • College Savings Accounts
    • Expert Witness & Testimony
  • Contact
  • Home/
  • Investment Strategies/
  • My Gut Feeling For Today, March 13, 2014: A Sell-off Without Significance

My Gut Feeling For Today, March 13, 2014: A Sell-off Without Significance

March 14, 2014 / scott / Investment Strategies, Russia / No Comments

The S&P 500 (SPX) declined 21 points and the Dow Jones Industrials (DJIA) declined 231 points yesterday. Of course the absolute magnitude of the declines dominated headlines and caused some gasps amongst individual investors. However, the relative declines of 1.17% for the SPX and 1.41% for the DJ Industrials were not all that worrisome. Let me put it this way, 200 points is the new 100 points. In other words, with higher index levels come greater daily point swings.

Economic Data Remains Positive

These declines occurred despite positive economic data – weekly unemployment claims and retail sales which were reported early in the day. In the long run, economic fact will trump emotion. In the short run, emotion can rule the day.

The excuse given for the decline was the situation in Crimea and Ukraine. However, the low volume sell-off which was focused on many of the prior year’s big winners appeared to this market participant, to be more of profit taking, and a buyers strike than the beginning of a major pull back. That is not to say that the situation with Russia won’t wreak more havoc on the global markets. I just think that the impact will be short lived and transitory in nature.

Sell-off Was Due to Derivative Expiration

I would like to submit my hypothesis, for your consideration, that the Thursday sell-off was related to today’s quarterly derivative expiration. Typically the markets will have a poor day on Tuesday, Wednesday or Thursday preceding options expiration which can be exacerbated on the quarterly expiration days..

The markets are likely to remain jittery ahead of the weekend. Use the weakness to begin new positions or add to existing positions.

__________________________________________________________________________________

Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView Asset Management, LLC had no positions in stocks mentioned — although positions can change at any time.

LakeView Asset Management, LLC is a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right hand corner of the website.                                                                                 

Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant and agricultural stocks. A subscription is included with a paid Platinum Membership to Wall Street All-Stars or an individual subscription to the newsletter which can be ordered at www.restaurantstox.com 

Read Scott’s intra-day thoughts and comments on Scutify 

You can email Scott at scott.rothbort.lakeview@gmail.com

Share this with a friend!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Sample of My Gut Feeling on Bloomberg Radio

Financial Podcast With Scott Rothbort

Listen to more radio broadcasts

Search My Gut Feeling

My Gut Feeling Archives

February 2021
S M T W T F S
« Jan    
 123456
78910111213
14151617181920
21222324252627
28  

LakeView Restaurant and Food Chain Report

restaurant stock report
  • Listen to Scott On The Radio
  • Scott’s Facebook Feed
  • Watch Scott’s TV Appearances

Contact Us

  • (888)-9LAKEVIEW
  • (702) 749-9343 or (973) 564-8139
  • investlakeview@gmail.com
  • scott.rothbort.lakeview@gmail.com
  • Contact Us
    • Facebook
    • Twitter
    • Linkedin

Signup For “My Gut Feeling”

Latest From Scott

  • My Gut Feeling For Today, February 11, 2021: Short Selling, Gamestop and Robinhood – Part 2
  • My Gut Feeling For Today, January 31, 2021: Short Selling, Gamestop and Robinhood – Part 1
  • My Gut Feeling For 2021
  • My Gut Feeling For 2020 – A Look Back
  • Scott Rothbort’s 10 Things I Won’t Miss About 2020
(c) 2013 - 2017 LakeView Asset Management, LLC. all rights reserved, 526 Carnforth Drive, Henderson, NV 89014 | Toll Free: (888) 9-LAKEVIEW I Website Disclosure