Stocks flat this morning which is a moral victory of sorts. After losing about 1% and closing on the lows last night most traders would probably be happy to take a push for the day and start the three day weekend early after the confusing, money losing filth show of that is January to date.
It's not exactly a 2008 meltdown but the market performance so far this year has been pretty grim. Yesterday marked the second five-day losing streak just this month, something that hadn't happened in years. We're now down 3.2% year to date. Since stocks peaked on December 29th the S&P (^GSPC) has dropped 4.8%. Most concerning at least on a technical level is the fact that the market closed at the very bottom edge of what could be considered support. Anything in the 1970's on the close today would be bad.
Related: Swiss sucker punch global markets
Fundamentally the week in earnings has been OK, not great, and guidance has been fairly bleak. Last night Schlumberger (SLB), the world's biggest oil services company said it was cutting capex by 25% and firing 7% of its employees. Intel (INTC) took down guidance for this quarter and the full year. Earlier in the week KB Home (KBH) took down margin estimates and the stock fell 25% in three days.
The market may have been able to shake all of that off had it not been for the Swiss currency sucker-punch yesterday reminding traders that it's hard to be optimistic when the world is collapsing around you. Ultimately buying shares in a company is an act of faith, if not in the global economy at least in the fact that a greater fool will buy you out for more than you paid. Right now the world is looking pretty half-full and anyone who bought stocks a week ago has to be wondering if the greater fool isn't them.
Get the Latest Market Data and News with the Yahoo Finance App
We're obviously due for a bounce but that really isn't a trading thesis. This is a three day weekend but only in the United States. The rest of the world is open for business on Monday and God only knows what the Europeans have up their sleeves. I said it yesterday and I'll leave it with you again today: You don't have to trade. The crazy brave among you can buy this support with a tight stop and hope the world is still intact when you come in on Tuesday. Saner minds are likely to use any pop as a chance to take some off the table and get their minds right over the weekend.
More from Yahoo Finance
Hints of recession as American consumers grow confident
Bank earnings continue, here's how to play them
Euro is headed even lower to 1.10: Bill Baruch