Investors Have Second Thoughts

11-19-2015 5-38-03 PM

It seems large Obamacare provider United Health Care (UNH) is having second thoughts about participating in it. It seems even for this insurer are more costly than expected. This, even as the industry itself mostly designed the program.

But they’re not alone as individuals and large companies have seen premiums skyrocket.

11-19-2015 5-38-57 PM

11-19-2015 5-39-19 PM

In markets Wednesday investors seemed also to have some second thoughts as the early rally in the week didn’t find much follow-through.

Economic data showed a positive reading from Leading Indicators (0.06% vs 0.05% expected & prior -0.1%) but this was mostly due to higher interest rates which is counterintuitive for growth. Since then interest rates have stabilized. (I like to use “stabilized” which is kind of an official term used by the Fed and others…snicker.). Meanwhile the Philly Fed Survey was flat.

I thought the article penned by former White House advisor David Stockman (here) offered a different opinion from the mainstream regarding economic conditions and is worth a read.

Market sectors moving higher included: Utilities (XLU), Transports (IYT), Europe (VBK), UK (EWU), Germany (EWG), Emerging Markets (EEM), EAFE (EFA), South Korea (EWY), Taiwan (EWT), Australia (EWA), Canada (EWC), Euro (FXE), Gold (GLD), Silver (SLV), Gold Stocks (GDX), Brazil (EWZ) and Bonds (TLT).

Market sectors moving lower included: Energy (XLE), Healthcare (XLV), Biotech (IBB), Retail (XRT), Regional Banks (KRE), Small Caps (IWM), High Yield (HYG), Crude Oil (USO), and Natural Gas (UNG).

The top ETF daily market movers by percentage change in volume whether rising or falling is available daily.

Volume was quite light and breadth per the WSJ was mixed.

11-19-2015 5-40-10 PM

The last two weeks have featured two nearly -200 point & two +200 point trading days. This doesn’t give anyone save the HFTs reason to pause.

I was headline reading, this like others caught my eye: “Stocks Rally as Investors Brace For Possible Rate Hike” (WSJ). That’s about as contradictory a headline as you might expect given common historical experience. It seems even the WSJ now loves big brother.

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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 ...

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