Logical? That would be too much to expect or ask. For example, take this announcement late in the day from Bloomberg stating “Treasuries Fall With Fed Forecast to Trim Debt-Buying at Meeting”. Well, who the hell didn’t know QE was ending in October?
Markets were weak throughout most of the day on really crappy economic data. The included a sharp drop in Pending Home Sales of -1.1% vs 0,3/% expected & prior 6%. (Did it snow somewhere?) That was preceded by a flat PMI Services Index Flash to 61 vs 69 expected & prior 61.2.
Equities were weak early but picked-up some steam as Long Aussie Dollar/Short Japanese Yen kicked-in which has routinely followed or led SPY buy programs as dip buyers were given a reason to launch some buy programs as ZH chart below shows:
We’d like to welcome Scott Murray as a guest commentator. Today he writes about United States Oil (USO) and Oil Futures Spot Price.
Anyway despite all the weak data lately we still find people who can spin things in their own unique way. Take this nugget from a MarketWatch interview: “We are not shocked with the home sales numbers because demographic trends are underpinning those numbers. A much higher proportion of young people is living with their parents, as they are weighed down by student debt and stagnant wages,” said Patty Edwards, managing director and portfolio manager at US Bank Wealth Management. “Still, the economy is slowly improving and we expect companies to continue to grow their earnings. This market is more and more earnings driven and we are watching softer revenue growth, though no alarm bells are going off yet,” she added. Reposted without comment.
Leading market sectors higher included: REITs (IYC), Utilities (XLU), Gold Miners (GDX), Silver (SLV), China (FXI), Market Vectors China (PEK), China Small Caps (HAO), South Korea (EWY), Indonesia (IDX), Hong Kong (EWH), Asia ex-Japan (AAXJ), Base Metals (DBB) and Emerging Markets (EEM).
Leading market sectors lower included: Banks (KBE), Regional Banks (KRE), Transports (IYT), Industrials (XLI), Oil & Gas Services (OIH), Homebuilders (ITB), Biotech (IBB), Consumer Staples (XLP), Small Caps (IWM), Austria (EWO), Germany (EWG), Russia (RSX), Sweden (EWD), Crude Oil (USO) and Silver.
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Tuesday yields more earnings and economic data with the latter including S&P Case-Shiller HPI and Consumer Confidence.
Wednesday through Friday is when the fireworks should really begin.
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||101.40||-0.27||-0.27 %||01:58|
|US Dollar||81.10||-0.01||-0.02 %||17:00|
|Brazil||2551.940||-0.45 %||6.76 %||15.05 %|
|Russia||659.720||-2.81 %||-10.77 %||-16.16 %|
|India||500.739||-0.31 %||1.65 %||22.94 %|
|China||65.779||0.90 %||6.97 %||4.24 %|