[Chart courtesy of MarketWatch.com]
- Moving the Markets
It had to happen eventually. The winning streak came to an end today, as uncertainty reigned in regards to tax cuts and corporate earnings, of which some 200 S&P companies are scheduled to report this week. Of course, given current market levels, we are way overdue for a pause.
Interestingly, the markets did not find any footing during the session, as we have become accustomed to, and ended up closing at the lows for the day. As ZH reports, it has now been 242 days since the US equity market has dipped by 3% or more… a new dubious all-time record, and to me another confirmation that markets are manipulated. As far as today is concerned, stocks had their worst outing in 6 weeks.
Despite the major indexes slipping, we saw some green numbers in ETF space. Gaining the most was our winner YTD, namely Semiconductors (SMH), which managed to buck the Nasdaq’s downtrend by gaining +0.38%. Divided ETFs (SCHD) also closed on the positive side with +0.08%. However, red numbers were dominant with Emerging Markets (SCHE) giving back -0.80%, while Aerospace & Defense (ITA) and SmallCaps retreated -0.70% and -0.67% respectively.
The yield on the 10-year bond ended up dropping 1 basis point to 2.38% after having tested higher ground all day, namely the 2.40% level. Gold was lower for most of the session, then suddenly spiked and managed to reclaim its 100 day M/A level. The US dollar (UUP) rallied but faded into the close with a tiny gain of +0.12%.