Some Things Bothering Bully
0
September 12, 2014

9-12-2014 4-25-40 PM bulls

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Perhaps not in the order of importance Bully frets about higher interest rates, the end of QE, economic troubles lingering in China which in turn negatively affects emerging markets, Russian sanctions, the referendum in Scotland, war and peace, the higher dollar and its negative impact on overseas markets and alternative investments, over extended stock prices and hey, did I mention interest rates?

So markets are gradually rolling over and technically that double top in the Dow is a problem since the set-up is almost perfect for a correction. This week markets are complying with the worries noted above.

U.S. economic data included Retail Sales 0.6% vs 0.6% expected & prior 0.3%. Less Autos & Gas Retail Sales readings were 0.5% vs 0.4% & prior 0.3%. Consumer Sentiment rose to 84.6 vs 83.4 expected & prior 82.5. Business Inventories were in line at 0.4% vs 0.4% expected & prior 0.4%.

Meanwhile in China investors struggled with new that credit growth was weaker than expected causing more selling there and in emerging markets.

Leading market sectors higher included: Banks (KRE), Russia (RSX) and not much else.

Leading market sectors lower included: Gold Miners (GDX), Small Caps (IWM), Energy (XLE), Healthcare (XLV), Utilities (XLU), Biotech (IBB), Homebuilders (ITB), Semiconductors (SMH), Materials (XLB), Emerging Markets (EEM), China (FXI), Taiwan (EWT), Australia (EWA), Germany (EWG), Turkey (TUR), Brazil (EWZ), Hong Kong (EWH), Multi-Asset Dividend ETF (CVY), Gold (GLD), Silver (SLV), Crude Oil (USO), Bonds (TLT), Corporate Bonds (LQD), Commodity Tracker (DBC) and Agriculture (DBA).

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

Volume was heavy as is typical on sell days when stops are hit. Breadth per the WSJ was quite negative—note Financials in Money Flow below.

9-12-2014 6-35-51 PM Diary 

Charts of the Day
  • SPY DAILY

    SPY DAILY

  • SPX WEEKLY

    SPX WEEKLY

  • INDU DAILY

    INDU DAILY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • KRE WEEKLY

    KRE WEEKLY

  • FDN WEEKLY

    FDN WEEKLY

  • SMH WEEKLY

    SMH WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • XLB WEEKLY

    XLB WEEKLY

  • XLE WEEKLY

    XLE WEEKLY

  • XLI WEEKLY

    XLI WEEKLY

  • ITB WEEKLY

    ITB WEEKLY

  • IYR WEEKLY

    IYR WEEKLY

  • LQD WEEKLY

    LQD 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

  • DBC WEEKLY

    DBC WEEKLY

  • EFA WEEKLY

    EFA WEEKLY

  • EEM WEEKLY

    EEM WEEKLY

  • EWZ WEEKLY

    EWZ WEEKLY

  • RSX WEEKLY

    RSX WEEKLY

  • EPI WEEKLY

    EPI WEEKLY

  • FXE WEEKLY

    FXE 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

All things considered the proverbial “wall of worry” just got a little too steep for even da boyz to deal with. Clearly absent any other geopolitical events (including the vote in Scotland) investors will key on the Fed next week Wednesday.

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
Gold1,233.904.600.37 % 23:55
WTI Crude Futr91.18-1.09-1.18 %23:14
Index Quotes Change Change % Local
CRB281.90-0.87-0.31 %09/12
US Dollar84.32-0.15-0.18 %09/12
Index Quotes Change Change % Local
VIX13.310.513.98 % 09/12
MSCI Value Daily MTD YTD
Brazil2402.017-4.14 %-10.79 %8.29 %
Russia658.821-0.61 %1.54 % -16.28 %
India515.9690.33 %1.52 % 26.68 %
China66.207-0.24 %0.11 % 4.92 %