[Chart courtesy of MarketWatch.com]
- Moving the Markets
It was another session during which the major indexes danced around their respective unchanged lines. Early losses were wiped out for the most part, and we managed to eke out a tiny gain with the exception of the Nasdaq, which closed slightly in the red.
In the ETF spectrum that we are invested in, Transportations (IYT) took the lead with +0.40%, followed by the Dividend ETF (SCHD), which added +0.33%. Lagging behind, but ending the day in the green, were the International SmallCaps (SCHC) with +0.15% and International Equities (SCHF) with +0.06%. With the Nasdaq showing weakness, it’s no surprise that Semiconductors (SMH) ended down -0.37%.
Low volume marked the session and added to the aimless meandering, which also found support from continued geopolitical tensions and political turmoil in Washington. The bulls remained cautious and defensive sectors benefited. Gold was one of those areas, and the shiny metal is again knocking against its $1,300 glass ceiling for the third time this year.
The 10-year bond yield dropped again and has now reached a level last seen in June. It’s a clear sign that economically speaking things may not be what they appear as presented in MSM. The US Dollar (UUP) had recently bounced off the August 1 lows, but seems to have resumed the downtrend and is now approaching that low from above. On the weekly chart, it has now also broken his 200-day M/A, which has not happened since August 2014. It looks to be a bear market in the making.