Whoa - What a Ride!

A major drop in oil prices was the catalyst for a major slide in the market averages Thursday morning. In an apparent move to quash oil prices the president ordered the strategic reserve to be opened. As perverse as it may seem, the stock market has been positively correlated to oil prices of late.

After dropping more than 240 points the market reversed course on news of an agreement being reached by Greece and the European banks. The Dow ended up losing 59.67 points on the day.

I was able to take a position in GDX (gold miners ETF) while the prices were down. I also picked up XLV (healthcare ETF) on the dip.

An observation of possible significance that I made was the fact that the defensive sectors did not hold up as well as would be expected.  This is reminiscent of the behavior they displayed in 2008 just prior to the general market's big slide.

Utilities, healthcare and consumer staples may be changing their character at the moment. After today's action I will definitely be making a mental note.

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.