Financials A Go-Go
0
August 21, 2014

8-21-2014 4-18-21 PM Bankster

Now that Bank of America (BAC) takes a $17 billion dollar fine that clears the deck for the stock to rally over 4%. This pulled the financial sector, a large weighting in the S&P 500 Index, much higher. Away from the financial sector markets were mixed to messy.

Elsewhere global news was mixed so was the reaction to them.

In China PMI Mfg Index Flash fell sharply to 50.3 vs 51.5 expected & prior 51.9. Pundits (again) expect stimulus as they have for the past two quarters. But U.S. China ETFs were having none of it and sold several lower including popular FXI.

Europe PMI Mfg Index Flash also slowed to 50.8 vs 51.3 expected & prior 51.8. But European stocks rose overall as hopes Draghi will launch more stimulus. He’s in Jackson Hole and may make such themed comments.

In the U.S. Jobless Claims fell slightly to 298K vs 300K expected & prior 312K; PMI Mfg Index Flash was much better to 58 vs 56.3; Existing Home Sales improved to 5.15M vs 5M expected & prior 5.03M; and, the Philly Fed continues to rise despite respondents indicating a significant drag from Obamacare to 28 vs 20 expected & prior 23.9.

Leading market sectors higher included: Financials (XLF), Banks (KBE), Regional Banks (KRE), Tech (QQQ), DOW (DIA), Small Caps (IWM), Semiconductors (SMH), Value (VTV), Europe (VGK), Europe/Pacific (VEA), European Monetary Union (EZU), Russia (RSX), Italy (EWI), Bonds (TLT), Crude Oil (USO), and Natural Gas (UNG).

Leading market sectors lower included: Retail (XRT), Biotech (IBB), Gold Miners (GDX), Junior Gold Miners (GDXJ), China (FXI), Emerging Markets (EEM), Gold (GLD), Platinum (PPLT), Base Metals (DBB), South Korea (EWY) and Hong Kong (EWH).

The top 20 market movers by percentage change in volume whether rising or falling is available daily.

Volume remains light and breadth per the WSJ was modestly positive. Looking at money flow below it’s easy to spot where the action was.

8-21-2014 6-13-28 PM Diary

Charts of the Day
  • SPY 5 MINUTE

    SPY 5 MINUTE

  • SPX WEEKLY

    SPX WEEKLY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • KBE WEEKLY

    KBE WEEKLY

  • KRE WEEKLY

    KRE WEEKLY

  • ITB WEEKLY

    ITB WEEKLY

  • IYT WEEKLY

    IYT WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • USO WEEKLY

    USO WEEKLY

  • DBC WEEKLY

    DBC WEEKLY

  • VGK WEEKLY

    VGK WEEKLY

  • EEM WEEKLY

    EEM WEEKLY

  • FXI WEEKLY

    FXI WEEKLY

  • NYMO DAILY

    NYMO DAILY

    The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

  • NYSI DAILY

    NYSI DAILY

    The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.


     

  • VIX MONTHLY

    VIX MONTHLY

    The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.


     

 

 

Closing Summary

The shorter presentation today is due to fewer interesting changes from Wednesday with the exception of financials, China and China related markets.

Yellen has the big microphone in the Tetons and her voice could carry a long distance from the mountain range.

Let’s see what happens.

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...

Headshot David Fry xsmall

Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.

He is the author of "Create Your own ETF Hedge Fund: A Do-It-Yourself Strategy for Private Wealth Management" published by Wiley Finance and "The Best ETFs: U.S. Equities, A Companion Guide to Building Your ETF Portfolio".



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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

 

ETF Digest

Market Summary
NYSE Composite Index S&P 500 Index Nasdaq Composite Index Russell 2000 Small Cap Index NYSE Composite Index S&P 500 Index Nasdaq Composite Index Russell 2000 Small Cap Index 10 Year Treasury Note Yield Gold Bugs Index Morgan Stanley High Tech 35 Index Market Chart
Commodity Quote Change Change % NY
Gold1,280.803.500.27 % 15:34
WTI Crude Futr93.53-0.43-0.46 %15:00
Index Quotes Change Change % Local
CRB288.67-0.38-0.13 %15:08
US Dollar82.360.150.18 % 15:23
Index Quotes Change Change % Local
VIX11.72-0.04-0.34 %15:07
MSCI Value Daily MTD YTD
Brazil2572.0130.26 %5.82 % 15.95 %
Russia689.4701.15 %4.64 % -12.38 %
India505.438-0.11 %1.88 % 24.09 %
China66.592-0.73 %0.89 % 5.53 %