Welcome once again to the casino where anyone can be a winner or loser dependent on the day.
It’s been an up and down week with high volatility. The month of September ends with a “must have” rally to make conditions seem better than they are frankly. The rally Friday was primarily based on a rumor that troubled Deutsche Bank ($DB) would settle a +$5 billion claim with the U.S. Justice Department over prior financial practices. This meant to some the banks troubles in Europe would/could also be alleviated. This seems a stretch of course given the disconnect of one issue to another; but, that’s the way things on Wall Street these days.
Let’s remember it’s month and quarter-end for September therefore portfolio management fees are on the line for da boyz.
Leading the charge higher Friday to close the week and month of September were in the oversold financial sector led by banks naturally.
Nevertheless, to my eyes, I don’t see anything settled this day other than a classic short squeeze. Further, as the oil rally from mid-week settled only modestly higher, many questions about the reliability of a proposed cap on supply came into play.
Below is the heat map from Finviz reflecting those ETF market sectors moving higher (green) and falling (red). Dependent on the day (green) may mean leveraged inverse or leveraged short (red).
Volume was modest Friday but with an ugly close. Breadth per the WSJ was positive and Money Flow thru Thursday was negative for the week.
HI/LO INDICATORS DAILY
HI/LO INDICATORS WEEKLY
HI/LO INDICATORS MONTHLY
To sum up a volatile week it’s best to view the weekly chart to get the best view of conditions including our HI/LO readings. Once again these show us in a neutral/bearish condition.
It was a wild week with a lot of day-to-day volatility. Price manipulation was the order of the day Friday as conflicts of interest given end of quarter fee income considerations dominated the action.
We enter the even more volatile month of October which will test investor’s mettle. So fasten your seat belts.
Let’s see what happens.
Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.
Named as one of the Top 22 ETF Experts You Need To Follow on Twitter for continuing to deliver high quality analysis and commentary through the ETFDigest Twitter feed.
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