Existing Home Sales dropped 4.8% vs prior gain of 1.8%. This is disappointing and had been one of the better data point’s bulls and the Fed pointed to justify the economic growth as “solid”.
Some of the highlights from trading Monday was a sharp decline in the biotech sector as would-be president Hillary Clinton slammed the sector’s high prices. Of course she’d have to become president first to do anything about, but nevertheless nervous bulls sold the sector sharply Monday.
Another catalyst moving markets higher was a sharp rise in crude oil prices as bulls in the sector believe future supply would be much lower. We won’t get any data on that until Wednesday and Thursday.
It seems bulls also bought more Apple shares Monday on news the company “may” get in the electric car business. The projection for the launch is fuzzy but generally around 2019. It’s a little early to get excited about this.
Market sectors moving higher included: Dow (DIA), S&P 500 (SPY), Energy (XLE), Financials (XLF), Banks (KBE), Tech (XLK), REITs (IYR), Consumer Discretionary (XLY), Retail (XRT), Consumer Staples (XLP), Japan (EWJ), Hedged Japan (DXJ), India (EPI), China (FXI), Crude Oil (USO), and the Dollar (UUP).
Market sectors moving lower included: Healthcare (XLV), Biotech (IBB), Small Caps (IWM), Europe (EZU), Brazil (EWZ), Brazil Small Caps (BRF), Germany (EWG), Euro (FXE, Yen (FXY), Gold (GLD), Gold Stocks (GDX), Bonds (TLT) and Investment Grade Bonds (LQD).
On a humorous note Fed Governor Bullard called out CNBC’s Jim Cramer’s market cheerleading by calling it “unsavory”. And more specifically saying, “The Fed cannot permanently raise stock prices”.
The top ETF daily market movers by percentage change in volume whether rising or falling is available daily.
Volume was once again light on selling while breadth per the WSJ was mixed. Money Flow (below) was negative whichis a divergence from bullish headlines.
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We have to remember that we’re approaching the end of quarter soon. There’s plenty of incentive for bulls to jam markets higher to protect performance and fees for the quarter. The week will wear on for Fed speakers to chatter all they want to manipulate market opinions Bullard’s comments this day were more than just a little curious. Lockhart spoke Monday and will try again Tuesday to create some buzz. Yellen is due up again Friday evening where she hopes to clarify the negative take on her press conference and FOMC decision. Bullard and Ether George speak again Friday. I wonder how much these Fed governors get paid for these speeches if anything? I wish they’d just shut-up. Let’s see what happens.
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