Market Volatility Increases
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February 09, 2016

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Stocks were sharply lower to start what we like to call Turnaround Tuesday.

Then what passes for the the best choice 2:15 Buy Program Express kicked in and levitra generic canada stocks launched a powerful turnaround based on literally nothing at all.

Does somebody know something we commoners don’t know? Possibly. But the HFTs may just be messing with us for fun and short-term profits.

Or, is Yellen & Co going to offer some drama in testimony to the legislatures Wednesday and Thursday? There were rumors from traders the Fed will launch Operation Twist part 2, which given the intent of such an action, would seem counter to their overall plans. The rumblings from the globe indicate negative interest rates (NIRP) may be offered to stem the bleeding.

Speaking of supplements cialis online pharmacy NIRP and where these policies are now in place, that market declined nearly 5% just Tuesday. So, how’s that working for them? Clearly not! So should the non prescription viagra Fed do this and save the stock market. That wouldn’t seem logical would it?

Again, words fail me.

Still confounding investors in Europe is the ongoing pressure on Deutsche Bank with we highlighted in yesterday’s commentary. Another cause for the afternoon rally was centered on a desperate proposal by the bank to buyback debt using existing liquidity as FT notes below.

“The plan doesn’t involve Deutsche’s Co, which have come under heavy pressure over the last several days with yields soaring as the market increasingly doubts the bank’s ability to make good on its subordinate debt. Deutsche will need to make coupon payments in April.

 “Deutsche Bank has plenty of scope for a bond buyback, with €220bn of liquidity reserves,” FT notes. Of course the buy viagra online paypal cures bank’s liquidity position will be diminished thanks to the buyback and the buyback is only necessary because the market is concerned about the bank’s liquidity. So there’s a bit of a chicken-egg scenario going on with this truly absurd attempt to calm markets by reducing debt.”

Another weird move Tuesday included a nearly 6% decline in crude oil prices due to an increase in OPEC production. Obama then followed to propose a $10 increase per barrel in oil taxes. Not to worry, that dog will not hunt, and displays the president’s detachment from economic fundamentals. The dollar fell but so oddly did gold prices if only slightly. Conservative stock sectors (healthcare, industrials, consumer staples and even materials) rose on the day while higher beta sectors fell.

If all the above wasn’t enough the levitra tablets sale Trade Deficit with China grew to a record high of $365.7 billion last month. This is more fodder for The Donald.

Market sectors moving higher included: Volatility (VXX), Healthcare (XLV), Industrials (XLI), Consumer Staples (XLP), Materials (XLB) but not much else.

Market sectors moving lower included: Small Cap Stocks (IWM), REITs (IYR), Europe (IEV), UK (EWU), Japan (EWJ), China (FXI) Brazil (EWZ) Emerging Markets (EEM), Canada (EWC), Russia (RSX), India (EPI), Australia (EWA), South Korea (EWY), Taiwan (EWT), Mexico (EWW), Crude Oil (USO), Silver (SLV), Gold Stocks (GDX), Dollar (UUP), and need I continue?

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).

2-9-2016 3-21-42 PM

 

12-17-2015 9-04-44 PM Chart of the Day

 

 

 

2-9-2016 3-22-26 PM

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

  • XLB WEEKLY

    XLB WEEKLY

  • XLE WEEKLY

    XLE WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • XLV WEEKLY

    XLV WEEKLY

  • XLI WEEKLY

    XLI WEEKLY

  • HYG WEEKLY

    HYG WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • HYG WEEKLY

    HYG WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • HYG WEEKLY

    HYG WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXE MONTHLY

    FXE MONTHLY

  • GLD MONTHLY

    GLD MONTHLY

  • GDX MONTHLY

    GDX MONTHLY

  • SLV MONTHLY

    SLV MONTHLY

  • DBA MONTHLY

    DBA MONTHLY

  • USO MONTHLY

    USO MONTHLY

  • 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 http://www.slz.sk/index.php/cheap-viagra-no-prescription-overnight/ 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 online prednisone 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. 

 

Let’s see what happens

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Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001. 

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Disclaimer

ETF Digest™
 

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 sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com

 

ETF Digest

Market Summary
NYSE Composite Index S&P 500 Index Nasdaq Composite Index Russell 2000 Small Cap Index NYSE Composite Index S&P 500 Index Nasdaq Composite Index Russell 2000 Small Cap Index 10 Year Treasury Note Yield Gold Bugs Index Morgan Stanley High Tech 35 Index Market Chart
Commodity Quote Change Change % NY
Gold1,196.706.700.56 % 08:15
WTI Crude Futr27.96-1.73-5.83 %14:29:15.000
Index Quotes Change Change % Local
CRB156.58-4.00-2.49 %
US Dollar96.03-0.73-0.76 %16:43
Index Quotes Change Change % Local
VIX26.500.501.92 %
MSCI Value Daily MTD YTD
Brazil986.9930.45 %2.92 % -4.75 %
Russia375.177-3.31 %-6.42 %-7.30 %
India418.566-1.54 %-2.14 %-8.92 %
China50.449-0.20 %-2.70 %-15.08 %