For most of 2014 tech via the (QQQ’s) or a host of other tech names, has been the undisputed market leader. Other primary indexes, (Dow, S&P 500, Small Caps and so forth) have either lagged slightly or badly. Monday other indexes attempted to get even moving higher or just remaining unchanged as tech fell over 1% the biggest decline in six weeks. (You might remember the big drop in early August right?) Big tech names like Facebook (FB) and LinkedIn (LNKD) in social media were hammered helping to drag down the index. Further, high fliers like Netflix (NFLX), Seagate (STX0, Rackspace (RAX) and Symantec (SYMC) were also hit further dragging tech lower.
We’re entering a week loaded with a lot of market moving data and events which create uncertainty causing investors to step back playing defense.
Monday soft Chinese economic data slowed gains in Europe. Factory Production rose only 6.9% vs 8.8% expected and prior 9%. U.S economic data included a better Empire State Mfg Survey perhaps due to tax-free promotion by NYS: 27.54 vs 15.30 exp & prior 13.69 but worse Industrial Production -0.1% vs 0.3% exp & prior 0.2%.
The week will of course feature the Fed on Wednesday making investors nervous about interest rate increases. Then Thursday is the Scottish independence referendum which rattles those wishing to keep the European Union intact. Friday we revisit Quadwitching once again.
Leading market sectors higher included: Junior Gold Miners (GDXJ), Energy (XLE), Brazil (EWZ), Latin America (ILF), Crude Oil (USO), Natural Gas (UNG) and not much else.
Leading market sectors lower included: Tech (QQQ), Social Media (SOCL), Regional Banks (KRE), REITs (IYR), Small Caps (IWM), Retail (XRT), Semiconductors (SMH), Biotech (IBB), Metals & Mining (XME), Emerging Markets (EEM), Russia (RSX), China (FXI), Hong Kong (EWH), Australia (EWA), Solar (TAN), Coal (KOL), Agriculture (DBA) and Base Metals (DBB).
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Volume was elevated again on early selling. Breadth per the WSJ was negative.
Depending on conditions, there won’t be much need to post another commentary until the Fed weighs in. Frankly, it’s just that simple.
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.
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".
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||94.68||1.76||1.89 %||12:48|
|US Dollar||84.17||-0.19||-0.22 %||13:03|
|Brazil||2428.413||1.10 %||-9.81 %||9.48 %|
|Russia||648.328||-1.59 %||-0.08 %||-17.61 %|
|India||508.072||-1.53 %||-0.03 %||24.74 %|
|China||65.445||-1.15 %||-1.04 %||3.71 %|