Goodbye August, Hello September
0
September 02, 2014

9-2-2014 6-23-11 PM goodbye

U.S. economic data Tuesday was strong as PMI Mfg Index beat at 57.9 vs 57.8 expected & prior 55.8; ISM Mfg Index beat 59.0 vs 56.8 expected & prior 57.1; and, Construction Spending rose to 1.8% vs 0.9% expected & prior -0.9%. Meanwhile in Europe the most anticipated stimulus package since the invention of the printing press is Draghi’s and the ECB’s stimulus roll-out. The delay has made the event old news perhaps leading to a “sell the news” type of event.

Meanwhile U.S. stocks spent the first trading day of September meandering between gains and losses ending the day mixed with tech (QQQ) rising while other major indexes close with slight losses. Significant losses were noted in gold, energy and other commodities as the dollar rose with better economic data.

Leading market sectors higher included: Small Caps (IWM), Banks (KBE), Regional Banks (KRE), Transports (IYT), Retail (XRT), China (FXI), Brazil (EWZ), India (EPI), Japan (EWJ), Japan Hedged (DXJ), Latin America (ILF), Dollar (UUP), Base Metals (DBB) Agriculture (DBA) and Brazil Small Caps (BRF).

Leading market sectors lower included: Gold Miners (GDX), Gold (SLV), Metals & Miners (XME), Energy (XLE), Utilities (XLU), Russia (RSX), Natural Gas (UNG), Crude Oil (USO), South Korea (EWY), Taiwan (EWT), UK (EWU) and Bonds (TLT).

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

Volume remains light while breadth per the WSJ was mixed.

9-2-2014 6-27-44 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

  • IGN WEEKLY

    IGN WEEKLY

  • IGV WEEKLY

    IGV WEEKLY

  • FDN WEEKLY

    FDN WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • XLP WEEKLY

    XLP WEEKLY

  • KBE WEEKLY

    KBE WEEKLY

  • XRT WEEKLY

    XRT WEEKLY

  • XLU WEEKLY

    XLU WEEKLY

  • IYT WEEKLY

    IYT WEEKLY

  • IYR WEEKLY

    IYR WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXE WEEKLY

    FXE WEEKLY

  • FXY WEEKLY

    FXY WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • GDX WEEKLY

    GDX WEEKLY

  • SLV WEEKLY

    SLV WEEKLY

  • DBB WEEKLY

    DBB WEEKLY

  • USO WEEKLY

    USO WEEKLY

  • UNG WEEKLY

    UNG WEEKLY

  • DBA WEEKLY

    DBA WEEKLY

  • DBC WEEKLY

    DBC WEEKLY

  • VEA WEEKLY

    VEA WEEKLY

  • VWO WEEKLY

    VWO WEEKLY

  • EWU WEEKLY

    EWU WEEKLY

  • THD WEEKLY

    THD WEEKLY

  • VNM WEEKLY

    VNM WEEKLY

  • EWZ WEEKLY

    EWZ WEEKLY

  • ILF WEEKLY

    ILF WEEKLY

  • EPI WEEKLY

    EPI WEEKLY

  • RSX WEEKLY

    RSX 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 WEEKLY

    VIX WEEKLY

    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

Is good economic data what the bulls really want? It’s quite the conundrum.

On the one hand good economic data is lifting indexes but tentatively.

At the same time, bulls don’t want interest rate increases sooner. Currently the stronger dollar is helping to keep a lid on prices which holds back the Fed from raising rates.

Wednesday features the first of the important employment reports with the ADM Employment Report. This is starting to become more reliable since they changed their methodology. Factory Orders are also on tap and those are another important gauge of the economy’s strength. Also the Fed’s Beige Book will reveal some aspects of economic strength/weakness by various Fed districts.

You can follow our pithy comments on twitter and become a fan of ETF Digest on facebook.

...

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".



Archives
Disclaimer

ETF Digest™
 

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
Gold1,267.801.000.08 % 22:35
WTI Crude Futr93.250.370.40 % 21:59
Index Quotes Change Change % Local
CRB289.28-3.47-1.19 %17:27
US Dollar82.990.000.00 % 17:00
Index Quotes Change Change % Local
VIX12.250.272.25 % 09/02
MSCI Value Daily MTD YTD
Brazil2698.7720.43 %0.24 % 21.67 %
Russia641.044-0.14 %-1.20 %-18.53 %
India515.2820.31 %1.39 % 26.51 %
China66.2480.20 %0.18 % 4.98 %