Dow Sinks 300-Plus Points….Again!

U.S. stocks were hammered on Monday, with benchmark indexes falling through key support levels after a gauge of factory activity disappointed, heightening concern about the economy before Friday’s monthly jobs report.

Stocks had wavered ahead of the report that had U.S. manufacturing expanding at a substantially slower pace in January, driving overall factory activity to an eight-month low.

Dropping below its 200-day moving average for the first time since Dec. 28, 2012, the Dow Jones Industrial Average shed 2.1 percent, with all but one of its 30 components in the red.

The S&P 500 fell 2.3 percent, with telecommunications falling hardest and all 10 of its major groups in decline.

Falling under 4,000, the Nasdaq declined 2.7 percent.

European markets finished with losses after investors ignored reports of stronger manufacturing activity in the eurozone in January.

Many Asian markets were closed for the lunar new year but those trading moved lower, with the Nikkei in Japan declining by 2%. The benchmark Nikkei has tumbled 10.3% so far this year. That means the index is now undergoing a correction, after posting a whopping 57% gain in 2013 — its biggest annual rise in over 40 years.

Traders in Asia were cautious after the release of weak official Chinese manufacturing data. Many emerging markets have suffered over the past few weeks as investors have moved money out of riskier markets in favor of relative safe havens.

News Sources:  CNBC and CNN Money

The portfolio:

Nothing will humble you faster than the market….

I was pleased that I managed to avoid the first 70 point drop in the s&p, but it seems that it was not done yet!

Still the damage to the portfolio isn’t too bad, and I doubt that there will be much more to the downside now.  However, I have a sell signal across the board anyway, which I must follow in-case I am wrong.  But I don’t expect to be out for long.  Hoping to have a nice bounce at the open so I can claw back some of the selling today.

Bring on the bulls!

John

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