A Huge Bell Ringing On Wall Street

If investors are no longer willing to finance money-losing companies, if that type of speculative fervor has come to an end, this is a huge bell ringing on Wall Street.

Further reading: The Plight of the Unicorn: The Bubble Bursts 

"WeWork’s aborted IPO may come to mark the end of the current “unicorn” bubble the way the scuttled merger between Yahoo and eBay signaled the start of the dotcom crash in 2000. Having become CEO of Nasdaq in 2003, I saw up close the damage caused by the growth-over-profits philosophy in that earlier era, and WeWork’s spectacular fall – from the year’s most anticipated IPO to a company with a speculative-level credit rating that may run out of funds within a year – rings many bells.”

Stocks: Debacle Du Jour (Smile Direct SDC)

The money losing stocks, the recent IPO's continue to get beat up. The real debacle du jour was Smile Direct. That one was down another 15% today: down $2 - it closed at $11.34 right off the new low of $11.20. Remember, this stock came public less than 2 weeks ago and it was $23 a share.

The Federal Reserve Does Not Have Enough Ammunition

I don't really think there's enough ammunition left in the Fed's chamber to have a meaningful impact on the markets, and I think traders are overestimating the ability of the Federal Reserve to rescue the market the way it has rescued it in the past.

Related trading instruments: SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ)