Nasdaq Leadership Fading
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September 15, 2014

9-15-2014 4-47-09 PM regret

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.

9-15-2014 7-04-21 PM Diary

Charts of the Day
  • SPY 5 MINUTE

    SPY 5 MINUTE

  • SPX WEEKLY

    SPX WEEKLY

  • INDU DAILY

    INDU DAILY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • SOCL WEEKLY

    SOCL WEEKLY

  • FDN WEEKLY

    FDN WEEKLY

  • SMH WEEKLY

    SMH WEEKLY

  • KBE WEEKLY

    KBE WEEKLY

  • KRE WEEKLY

    KRE WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • XLB WEEKLY

    XLB WEEKLY

  • ITB WEEKLY

    ITB WEEKLY

  • IYR WEEKLY

    IYR WEEKLY

  • IYT WEEKLY

    IYT WEEKLY

  • HYG WEEKLY

    HYG WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXE WEEKLY

    FXE WEEKLY

  • FXY WEEKLY

    FXY WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • GDXJ WEEKLY

    GDXJ WEEKLY

  • SLV WEEKLY

    SLV WEEKLY

  • DBB WEEKLY

    DBB WEEKLY

  • DBA WEEKLY

    DBA WEEKLY

  • USO WEEKLY

    USO WEEKLY

  • DBC WEEKLY

    DBC WEEKLY

  • EFA WEEKLY

    EFA WEEKLY

  • VGK WEEKLY

    VGK WEEKLY

  • EEM WEEKLY

    EEM WEEKLY

  • EWA WEEKLY

    EWA WEEKLY

  • EWZ WEEKLY

    EWZ WEEKLY

  • RSX WEEKLY

    RSX 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

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.

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...

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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
Gold1,237.203.500.28 % 13:25
WTI Crude Futr94.681.761.89 % 12:48
Index Quotes Change Change % Local
CRB284.062.220.79 % 13:08
US Dollar84.17-0.19-0.22 %13:03
Index Quotes Change Change % Local
VIX13.38-0.74-5.24 %12:48
MSCI Value Daily MTD YTD
Brazil2428.4131.10 %-9.81 %9.48 %
Russia648.328-1.59 %-0.08 %-17.61 %
India508.072-1.53 %-0.03 %24.74 %
China65.445-1.15 %-1.04 %3.71 %