Yes, we’re on a working vacation this week. Little volume creates illiquidity so investors should remain cautious.
As a result, markets can be pushed around more easily by those with perhaps different agendas.
Let’s remember this is the season when portfolio managers are keen to keep markets at least flat if nothing else.
Performance bonuses are at stake for them.
Economic data this week will be light but what data is announced could move markets. Monday the Dallas Fed Manufacturing plummeted to only -20.1 vs -6 expected & prior -4.9. Of course most of this is due to declines in the energy sector; but, this negativity impacts the rest of the economy.
Stocks were lower Monday as oil prices fell once again effecting negatively last week’s gains in the twin rally of energy stocks with financials.
Market sectors moving higher included: REITs (IYR), Brazil (EWZ), Natural Gas (UNG) and Treasury Bonds (TLT).
Market sectors moving lower included: Mostly everything else.
The top ETF daily market movers by percentage change in volume whether rising or falling is available daily.
Volume was quite light befitting the holiday season. Breadth per the WSJ was negative.
It’s natural and proper in our opinion to be cautious this time of year.
Let’s see what happens.
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