Markets staged a horrendous showing today in the face of record oil prices of $140, and an unexpected unemployment number. In a rather strange dichotomy, a Morgan Stanley analyst predicted that oil could spike to $150 by July 4, so the prophecy was fulfilled a month early in anticipation of this potential reality. There was no pipeline explosion, no supply interruption by militants in Nigeria. It was a report by a single analyst. On the jobs front, unemployment spiked to 5.5%; low by global standards, but high for recent U.S. history, especially given the 5.1% predicted on the street.

While I could highlight the various sectors and stocks that were hammered today, I want to focus on one: not just because I own it, but because I bought more today on the belief that the market overreacted. Prior to market open, Focus Media (FMCN), the leading Chinese flat-panel display advertiser, was down over 10% on news that they had lowered earnings guidance for the year due to the massive earthquake in May. By the time the dust had settled, the stock lost 15% today on a one time event. In my mind, this is an ideal arbitrage opportunity. Given the leadership position the company holds and the notion that I don't anticipate "earthquake risk" as a continued threat to the company, it seems as though the market sent shares lower than would be appropriate in the face of a near term earnings disappointment and panic selling in the markets later in the day which impacted the FMCN ADRs.