Round and Round The Casino Market We Go
9-16-2016 4-12-19 PM


Has investing become just a casino now?

It feels that way since the Fed decided in their half-baked wisdom to take over the markets.

All this week we’ve markets move around with great volatility as various Fed governors have emerged from their focus groups to steer markets in one direction or another. In doing so, they’ve only seen their credibility challenged and compromised.

And, also throughout the week economic data was overwhelmingly weak allowing the prevailing canard, “bad news is good”, to come and go like the desperate plea that it is.

The only relief for bulls came from heavy indexed weight Apple Computer (AAPL) which allowed the tech sector to vastly outperform the rest of the market. The search for outperformance was enhanced by the S&P adding the real estate sector, mostly REITs, to the S&P 500 Index. It should be noted the quest for yield has been pushing the sector much higher and probably making the sector too expensive.

All that scary volatility did in the end allow the S&P 500 Index to close slightly higher on this quadruple options and futures expiration. Gold and crude, to name two, reflects weaker commodity prices.

Below is the heat map from Finviz reflecting those ETF market sectors moving higher (green) and falling (red). Dependent on the day (green) may mean leveraged inverse or leveraged short (red).

9-16-2016 4-27-21 PM

Volume on the day was heavy given quadwitching and breadth per the WSJ was negative. 

9-16-2016 4-29-03 PM
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12-17-2015 9-04-44 PM Chart of the Day
 
 
 
9-16-2016 4-29-46 PM RSP
 
 
 


Charts of the Day
  • SPY 5 MINUTE

    SPY 5 MINUTE

  • SPX DAILY

    SPX DAILY

  • SPX WEEKLY

    SPX WEEKLY

  • INDU DAILY

    INDU DAILY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • IYR WEEKLY

    IYR WEEKLY

  • XLB WEEKLY

    XLB WEEKLY

  • XLE WEEKLY

    XLE WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • XLI WEEKLY

    XLI WEEKLY

  • XLP WEEKLY

    XLP WEEKLY

  • XLV WEEKLY

    XLV WEEKLY

  • XLY WEEKLY

    XLY WEEKLY

  • XRT WEEKLY

    XRT WEEKLY

  • XLU WEEKLY

    XLU WEEKLY

  • CVY WEEKLY

    CVY WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXE WEEKLY

    FXE WEEKLY

  • FXY WEEKLY

    FXY WEEKLY

  • FXB WEEKLY

    FXB WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • SLV WEEKLY

    SLV WEEKLY

  • USO WEEKLY

    USO WEEKLY

  • DBC MONTHLY

    DBC MONTHLY

  • EFA WEEKLY

    EFA WEEKLY

  • EEM WEEKLY

    EEM WEEKLY

  • IEV WEEKLY

    IEV WEEKLY

  • NYMO DAILY

    NYMO DAILY
    The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

  • NYSI DAILY

    NYSI DAILY
    The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.

  • VIX WEEKLY

    VIX WEEKLY
    The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation has changed due to a variety of new factors including HFTs, new VIX linked ETPs and a multitude of new products to leverage trading and change or obscure prior VIX relevance.


9-16-2016 5-09-53 PM
HI/LO INDICATORS DAILY
9-16-2016 5-10-48 PM HILO DAILY
HI/LO INDICATORS DAILY FEATURED CHART: iPath Bloomberg Copper SubTR ETN (JJC)
 9-16-2016 5-13-30 PM JJC
 HI/LO INDICATORS WEEKLY
9-15-2016 6-03-11 PM HILO weekly
HI/LO INDICATORS WEEKLY FEATURED CHART:iShares MSCI Austria Capped (EWO)
9-16-2016 5-19-03 PM EWO
HI/LO INDICATORS MONTHLY
9-16-2016 5-21-23 PM HILO MONTHLY
HI/LO INDICATORS MONTHLY FEATURED CHART: WisdomTree Brazilian Real Strategy ETF (BZF)
9-16-2016 5-24-34 PM BZF
 
 
Volatility seems high but you’d never know it from the VIX.
 
It seems clear to me investors are getting nervous and the Fed’s inconsistencies aren’t helping them gain any confidence from or among themselves.
 
Overall, investors don’t seem to have a grasp of what authorities are doing. But it’s an election year and one must expect them to support markets.
 
Let’s see what happens

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