It’s easy to assert stocks were much oversold as markets hit fresh lows Tuesday morning.
Then came news that Greece and European leaders would be meeting Wednesday with the former presenting a fresh proposal. What would that do to relieve the stalemate? Nothing beyond perhaps turning public opinion against the powerful troika vs the so-called victimized Greece citizenry. Beyond that the Greeks will probably ask for a fresh cash infusion with more negations to follow (sigh).
There were enough fresh shorts to squeeze Tuesday and those that can do it were ready to pounce. It’s possible Tuesday was just one of many headline stories that will highlight this seemingly never-ending drama.
After being down below the 200 day moving average for most headline indexes (the Dow down over 200 points) markets reversed course and rallied sharply with most indexes turning green.
Economic data featured International Trade which declined once again to $-41.9B vs -40.7B; Gallup Economic Confidence fell for the 5th straight month to -8 vs prior -7; and, the JOLTS Survey edged higher to 5.36M vs 5.33M.
Leading market sectors higher included: S&P 500 (SPY), Dow (DIA), Energy (XLE), Oil & Gas Exploration (XOP), REITS (IYR), Utilities (XLU), Transports (IYT), Consumer Staples (XLP), Consumer Discretionary (XLY), Retail (XRT), Homebuilders (ITB), Greece (GREK), and Crude Oil (USO)
Leading market sectors lower included: Banks (KBE), Regional Banks (KRE), Emerging Markets (EEM), UK (EWU), Brazil (EWZ), India (EPI), South Korea (EWY), Asia ex-Japan (AAXJ), Hong Kong (EWH), Taiwan (EWT), Malaysia (EWM), Vietnam (VNM), Philippines (EPHE), China (FXI), China Small Caps (HAO), Shanghai (ASHR), Gold (GLD), Gold Stocks (GDX), Silver (SLV) and Copper (JJC).
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Volume was heavy and breadth per the WSJ was mixed and so too was Money Flow.
There isn’t much more to say beyond the market’s rally off support levels with European sides now talking again was all bulls needed to launch buy programs.
Wednesday yields Fed Minutes and Consumer Credit reports. The former remains important to investors since they believe there are nuggets of info not currently known. But seriously, what isn’t already known? Consumer Credit will likely also reveal what’s already known—Student Loans and auto sales will dominate.
Let’s see what happens.
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Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001. ETF Digest was named one of the most informative ETF websites in the 10th Annual Global ETF Awards.
Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com
|WTI Crude Futr||52.95||0.42||0.80 %||17:14|
|US Dollar||96.87||-0.01||-0.01 %||17:00|
|Brazil||1599.797||-1.02 %||-2.60 %||-12.69 %|
|Russia||495.327||-2.02 %||-3.41 %||22.33 %|
|India||511.345||0.43 %||2.11 %||3.01 %|
|China||69.526||-4.10 %||-6.53 %||5.28 %|