Major indices are lower this Wednesday morning, as traders experience a painful moment of clarity in the midst of a sustained euphoria that has come to border on frenzy. The trigger today was the news that China was re-evaluating its buying of US Treasuries. That, of course, is serious—a threat to the market’s jugular vein. United Continental (UAL) is up 4.35% after reporting an increase in traffic.
Industries doing well today include airlines, metals & mining, and banks. Industries showing weakness include personal products, leisure products, and life sciences. The VIX is up 3.8% to 10.46 after closing on Wednesday at 10.08. The most heavily traded options this morning are for the iShares iBoxx $ High Yield Corp Bd ETF (HYG), 18,363 February-16 87 puts on the board. The total put/call ratio as of 10:00 AM was 0.85 (476,644/406,136) The advancers/decliners ratio for NYSE stocks is 843/2,038 while the advancers/decliners ratio for NASDAQ stocks is 940/1,832.