The investment theme for today was that investors don’t have the patience to wait a week for the FOMC meeting next week. It wasn’t a brutal sell-off, but enough to rattle a Santa Rally in the short term. On the other hand, the sell-off was enough to push stocks to short-term oversold levels and catch many resting stops. Selling was widespread and losses were enough to wipeout the previous Friday unemployment rally.
ETFs with the highest beta (volatility) saw the most damage and vice versa. Leading the way lower were Gold Miners (GDX), REITS (IYR), Energy (XOP), Biotech (IBB), Small Caps (IWM), China (FXI), Emerging Markets (EEM), India (EPI), South Korea (EWY), Latin America (ILF),,Coal (KOL) Solar (TAN) and so forth. There were few gaining sectors. Bonds (TLT) were modestly lower and the dollar (UUP) was basically unchanged.
Volume increased on the selling but only in comparison to what we’ve seen so far this week. Breadth per the WSJ was negative.
Our staff puts together the daily top 20 ETF market movers by percentage change in volume for gainers, decliners and emerging volume.
Bulls could get some help from data on Thursday including Jobless Claims, Retail Sales, Import & Export Prices and Business Inventories.
Since logical and traditional thinking have been turned on upside down it’s hard to know how good or bad data will be received in this environment.
Let’s see what happens.
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||97.68||0.24||0.25 %||10:04|
|US Dollar||80.07||0.20||0.25 %||10:22|
|Brazil||2187.37||-3.01 %||-6.16 %||-19.81 %|
|Russia||769.55||-0.44 %||-0.65 %||-4.70 %|
|India||407.95||-0.64 %||3.43 %||-5.13 %|
|China||64.02||-1.71 %||-2.02 %||1.87 %|