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Columbus Day stock action: Mr Market flowers, fades in limp Monday trading

Written By | Oct 12, 2021
Columbus day stock action, Columbus Day trading schedule

“The Landing of Columbus,” painted by Dióscoro Puebla, circa 1862. Public domain image, via Wikipedia entry on Christopher Columbus.

WASHINGTON – Indigenous People’s Day Columbus Day stock action started out strong Monday. But as we approached Monday’s 4 p.m. ET closing bell, market averages, not to mention individual stocks more or less went limp. Tuesday, at least as of 1:30 p.m. ET, market action resembles the instructions on your favorite shampoo bottle: Rinse, repeat. These days, market enthusiasm seems to have become an excellent reason for investors to continue selling off their portfolios, as Mr Market flowers, then fades in a continuing pattern.

In short, I believe that the the lack of trust in government and nearly everything else has got investors selling the rallies rather than buying the dips. For those running the Biden Fraudulency, this remains a feature, not a bug. Weakening the American economy under Biden picked up where Obamanomics left off. Waiting to see the “Miss Me Yet?” Trump posters sometime soon.

Meanwhile, after a couple of days of inadvertent radio silence, we’re back from a rousing weekend spent in Front Royal, Virginia. We met with friends to attend a 2-day “Homesteader” get together at the Warren County, VA fairgrounds. There, we attended seminars focusing on how to get back to a life involving self-sufficiency and self-reliance in the coming years.

Not a “prepper” event at all, the focus of this event was on family, optimism and innovative farming techniques. That’s a breath of fresh air from the negative miasma that continues to hover over our home base on the edge of The Swamp.





Also Read: Investing pendulum swinging for Mr Market. But which way next?


Back to Mr Market…

The magic closing bell rang Monday as we attempted to wrap up this article. True to form, that initial Columbus Day stock market optimism again found itself fundamentally transformed – negatively – in late Monday trading. The Dow closed off nearly 250 points (-0.72%) as heavy selling swamped big company stocks that started the day in rally mode. But neither the broader-based S&P 500 nor the tech-heavy NASDAQ did much better. The S&P 500 ended the day down 30.18, for a -0.69% haircut at day’s end. The still lumpy NASDAQ actually did the best of the three, closing down 93.64% for a loss of 0.64% at the close.

None of this proved encouraging to those looking for October’s generally predictable return to bull market mode each year. That’s something known as “favorable seasonality,” and it usually happens in the second half of the month. This year, maybe it won’t. The Columbus Day stock action tended to confirm this trend.

Columbus Day stock action found oil continuing its latest upward run, which continued Tuesday morning

Typical of today’s action were the heavily rallying stocks in the energy sector, particularly anything related with oil. Courtesy of Saudi greed and the Biden Fraudulency’s hatred of all things fossil fuel, gasoline and to some extent natural gas are in shorter supply given America’s artificially-imposed supply restrictions.

As a result, we’re back, within just month of January’s regime change, to $80 per barrel oil prices. You may have noticed this at the pump lately. Coupled with actual fuel-based shortages, the once sinking oil stocks have bounced enormously over the past few months and jumped again Monday morning. Before heading to the red ink zone late Monday afternoon.

Something cooking in Saudi Arabia? A big release from the US oil reserves? Nobody knows and nobody is telling. Except the insiders who benefit on such news each and every time it happens at the expense of us little guys.

Tech stocks try to rally, but ended up continuing their ongoing 2021 suckage. Then, there’s Cleveland Cliffs…

Meanwhile, the rallies that began in a few tech stocks also beat a hasty retreat this afternoon, once again disappointing tech fans that thought a big rally might be imminent. So much for the optimists out there.

On a plus note, our friends at Cleveland Cliffs (NYSE:CLF) did it again, announcing another major, synergistic acquisition. Cliffs has agreed to acquire Ferrous Processing and Trading Company, a big scrap steel supplier. This will further transform this one-time iron ore and coal mining company into a major and very advanced steelmaker boasting the kind of integrated supply and production integration that could be the envy of everyone in the industry.

We reluctantly dumped our CLF shares last month when sellers attacked the shares, which then traded near recent highs. We started buying back in today even as the shares jumped after Wall Street caught wind of the new acquisition. This is generally a dumb move. But we only started a position.

The shares will almost certainly sell off somewhat, shortly. At which point, we’ll start to load up. At least for now, it’s been a reliable moneymaker for us, even though our brokerage firm continues to rate these shares “F.” If we’d listened to them, we’d have missed those profits. On the other hand, their recommendations have frequently been good ones. They just missed the boat on this one. Probably because few people follow Industrial or Materials stocks any more.

Meanwhile, CLF shares closed up around 4% on the day. On any significant drop, we intend to load up once again.



The wrap

That’s it for our recap of an otherwise boring Columbus Day on Wall Street. In fact, the day was made even more boring by the absence of bond traders and bankers, both of which got the day off along with the Feds. When these investments come back into the mix Tuesday, who knows what happens next? But so far, as already noted, it looks like “Rinse, Repeat.” We’re holding on to our heavy cash position for now. Except for opportunities in CLF.

 

Terry Ponick

Biographical Note: Dateline Award-winning music and theater critic for The Connection Newspapers and the Reston-Fairfax Times, Terry was the music critic for the Washington Times print edition (1994-2010) and online Communities (2010-2014). Since 2014, he has been the Senior Business and Entertainment Editor for Communities Digital News (CDN). A former stockbroker and a writer and editor with many interests, he served as editor under contract from the White House Office of Science and Technology Policy (OSTP) and continues to write on science and business topics. He is a graduate of Georgetown University (BA, MA) and the University of South Carolina where he was awarded a Ph.D. in English and American Literature and co-founded one of the earliest Writing Labs in the country. Twitter: @terryp17