Dow Down 678 Points, Worst Week since 2011

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You bet it was a bad week.

Stocks tanked this past week. Just a terrible week. However our one stock pick from the prior week had an incredible week. American Eagle Outfitters (AEO) bounced back 9%. It pays to read our lame website.

Stock Mastery at its finest, AEO was a great performer this past week when the Dow Jones had its worse dance since 2011.  I did not think AEO would rage so quickly but I'm happy it did. Another 3% or so and we are right back to where the stock was before the conference call.  We pitched the stock last weekend in American Eagle Outfitters: Why Buy Now? (AEO).

Now back to the hell that was the stock market this week.  The blame is oil's freefall. Thanks to oil's demise the Dow Jones Industrial Average had its worst week since 2011, volatility surged and fund managers said anxiety is building among clients and themselves. Oil is at a 5 year low. 

Selloff Acceleration (Reuters)

The selloff picked up speed in the final hour as the Dow average plunged more than 100 points and the S&P 500 (SPX) ended about 2 points above its average price for the last 50 days, a level monitored by technical analysts. At about 2:50 p.m., March futures on the benchmark gauge for U.S. equities slipped below 2,000 for the first time since Nov. 4.

More than $1 trillion was erased from the value of global equities this week as oil prices tumbled, raising concern over the strength of the global economy. Oil extended losses today amid speculation that OPEC’s biggest members will defend market share against U.S. shale producers. The International Energy Agency cut its forecast for global oil demand for the fourth time in five months.

The Chicago Board Options Exchange Volatility Index, a measure of the cost of options on the S&P 500 known as the VIX (VIX), jumped 78 percent this week, its biggest weekly rally in more than four years.

Stocks around the world fell today after November Chinese factory production growth slowed more than estimated. Data showing a 7.2 percent gain from the year before missed the 7.5 percent median estimate in a Bloomberg News survey. The Stoxx Europe 600 Index plunged 2.6 percent today and 5.8 percent over five days, its worst week in three years.