We enter the last week of March with the market having it’s worst week since before the Presidential election. The DOW, and S&P are in danger of their fist down month since October, There are sill areas of the market bucking this selloff, Nasdaq 100, Semiconductors, and Tech are among 8 of 22 ETF’s still positive for the month.
Note how with most of the market down on Friday, 7 or my top 8 ETF’s had winning days, showing a widening gap between the strong and weak sectors
Strong Yen action in early trading could mean a down opening for US stocks if these numbers hold overnight
Last years #2 ETF Semiconductors remains hot and could post it’s 5 straight up month and 12 of the last 14 months have been up as well. SMH was up 34% last year and is on course to top that. Such a two year run is not unheard off, as this sector did just that in 2013 & 2014
As expected we had a gap open lower but then recovered and by days end it was a 50/50 market lead higher buy YTD leader Biotech, down issues were lead lower by Reit’s
YTD leader Biotech had a nice bullish engulfing candle respecting the 50 day moving average. If this broader market pull back is nothing more then that then Biotech looks ready to lead market to new highs
Nice gap higher open for Silver and it held its gains into the close. Silver is up over 13.5% for the year vs. 9% for gold, Seeing all the industrial uses for silver I would expect silver to out perform gold over the long term
nearly all green today, DOW and S&P are now just one average up day from being positive for the month, Energy got a bid today on volume, nice to see continuation following yesterdays reversals
Nice two day move for XOP with today’s move on volume, I would say the selloff in energy is over for the moment, not a bad place to jump in for a swing move higher
Here I am looking at ERX , last two days this is up over 8% and now testing the top of 3 month long down trend channel, if this is more then just a dead cat bounce for the oversold energy sector then I will watch for ERX to break out of this channel to the up side
Another mostly up day lead by Financials which is never a bad thing. S&P 500 turned positive for the month, only hold out is the DOW, Tomorrow is last trading day of the month and we need the DOW to gain 87 points to finish the month in the green and give this post election rally it’s 5th month
Strong reversal candle last week for XOP, with oil up the whole energy sector got a needed bid. We need to see continuation this week but for now the decline in energy seems to be over
A lot of red today put it could had been much worse, stocks were down early then rallied all the way back in afternoon trading only to selloff again in last 30 min. With NFP this week I would not expect a whole lot to happen until Friday
of the 22 sector ETF’s I follow, XOP ( Oil and Gas Exploration) has been the weakest, down 9% YTD, but we saw price reverse last Monday and has staged a strong rally over the last 7 trading days. what I want to see next is price to get back above it’s 50 dma, then I will be watching for a low volume pullback, that would be my place to buy, you could buy it here just know your risk is higher as we have no price action proof buyers will support current prices if we get a couple of down days.
What happen to my market, about 1pm DOW is up 200+ , I take a few hours away from my computer only to come back to a DOW down 40. I am reading this is all because of the Fed minutes being released, this is just wrong the Fed should have this much effect on the markets
Stocks erased earlier gains to close lower Wednesday after the Federal Reserve released the minutes from its March meeting.*
The Dow dropped 41 points, with Goldman Sachs contributing the most losses. The 30-stock index had traded nearly 200 points higher earlier in the session. The S&P 500 gave up 0.31 percent, with financials lagging. The Nasdaq slipped 0.58 percent after hitting an all-time high earlier in the session.
For the Dow and the S&P 500, it was the biggest single-day reversal in 14 months.
The minutes showed Fed officials want to start unwinding the central bank’s massive $4.5 trillion balance sheet later this year.
Unwinding the balance sheet is significant both because of its sheer size and the impact it could have on markets, as Fed members including Chair Janet Yellen have indicated that the move itself would amount to a rate hike.
So in short the $4.5 trillion the Fed created out of thin air to prop up the market under Obama, they now want to pull that money out of the market,
Below is the 1hour chart of S&P 500, you can see how the market reacted in last two hour of trading, this is troublesome. the next couple days will be important and we have NFP on Friday. 2 one hour candles does not make a trend, and this could be just an emotional reaction. But we do have a Market that has made a big gain over last 4 month and needs to pull back, that pullback could be painfull if you bought late into this rally
