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  • ETF Tracker Newsletter For March 24, 2017

     

    ETF Tracker StatSheet

    http://www.theetfbully.com/2017/03/weekly-statsheet-etf-tracker-newsletter-updated-03232017/

    HEALTH CARE BILL FAILS; MARKETS SINK

    [Chart courtesy of MarketWatch.com]

    1. Moving the Markets

    In a repeat performance of yesterday, an early rally stalled and reversed leaving the major indexes about unchanged for the day but down for the week with the S&P 500 surrendering some -1.4%.

    As I mentioned throughout the week, the most widely watched news event was the path of the health care bill and whether Trump could muster enough votes in his own party to get the legislation through congress. The answer was finally revealed, before the markets closed, as Republicans pulled the bill prior to the voting procedure admitting that it could not get passed in its present form.

    That leaves the question as to what market reaction might be come next week. On view is that this is an ominous sign for Trump’s ability to push through his economic agenda while, on the other hand, you could argue that, with this monkey off his back for the time being, other things that are not as complicated like lowering taxes and reducing regulations, might be more doable.

    Market internals looked like this: This is the Dow’s longest losing streak (7 days) since election. Small Caps had their worst week since February 2016. The S&P 500 had its worst five trading days since November while the Financials suffered their worst week since January 2016.

    The greenback continued its slide for the 8th losing day in a row, which is the longest losing streak for the Bloomberg Dollar Index since April 2011. Treasury yields dropped on the week, despite the Fed’s rate hike on 3/15, which gave bond investors a reason to cheer as bonds finally rallied. Gold was the winner again, and the precious metal is now up for 2 weeks in a row, its best 2-week period since Brexit in 2016.

    (more…)