Stock Bulls Snatch Defeat From The Jaws Of Victory
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December 16, 2014

With markets short-term oversold bulls were looking to rally stocks.

Oil prices turned modestly green allowing many to say the worst is over.

But almost to the minute of Europe’s close investors hit the sell button sending the Dow, which was up over 200 points, down over 110 points lower. So wasted buying power is all I can conclude.

Remember the Fed is meeting today and tomorrow will release their decision followed by a much watched news conference. That event should be even more telling. Recent economic data and other global events will give Fed governors much to digest. For example, economic data Tuesday included weaker manufacturing in China and more weakness in the U.S. as Housing Starts fell to 1.028M vs 1.038M expected & prior 1.045M. Further U.S. PMI Manufacturing Index FLASH also fell to 53.7 vs 55.5 expected & prior 54.7.

Leading market sectors higher included: Energy (XLE), Natural Gas Producers (FCG), Russia (RSX), Canada (EWC), Australia (EWA), Gold (GLD), Bonds (TLT) and Crude Oil (USO).

Leading market sectors lower included: Everything else.                                                                    

The top 20 market movers by percentage change in volume whether rising or falling is available daily.

Volume was heavy and breadth per the WSJ was negative.

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12-16-2014 6-10-07 PM Diary

Charts of the Day
  • SPY 5 MINUTE

    SPY  5  MINUTE

  • SPY DAILY

    SPY DAILY

  • SPX WEEKLY

    SPX WEEKLY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • XLB WEEKLY

    XLB WEEKLY

  • XLE WEEKLY

    XLE WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXY WEEKLY

    FXY WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • USO WEEKLY

    USO WEEKLY

  • EFA WEEKLY

    EFA WEEKLY

  • VGK WEEKLY

    VGK WEEKLY

  • EEM WEEKLY

    EEM 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 is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.

 

 

 

 

Closing Summary

This short commentary is provided courtesy of Janet Yellen and the Fed. The big news tomorrow is the Fed, so I kept this commentary shorter than usual.

I don’t have a clue as to what Yellen and her colleagues have to say. They don’t make policy on oil or the falling Ruble. The current message that is most disturbing is the ultra-low yield on Treasury bonds. This symbolizes fear that another shoe is about to drop. Perhaps it means a Russian default is about to take place. Putin will blame Western sanctions but it’s really more about oil prices and the ruble.

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.

He is the author of "Create Your own ETF Hedge Fund: A Do-It-Yourself Strategy for Private Wealth Management" published by Wiley Finance and "The Best ETFs: U.S. Equities, A Companion Guide to Building Your ETF Portfolio"



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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
Gold1,189.70-6.30-0.53 %16:54
WTI Crude Futr55.90-0.03-0.05 %16:20
Index Quotes Change Change % Local
CRB239.891.140.48 % 16:27
US Dollar89.23-0.04-0.04 %16:43
Index Quotes Change Change % Local
VIX19.44-4.13-17.52 %16:14
MSCI Value Daily MTD YTD
Brazil1662.409-2.37 %-19.59 %-25.05 %
Russia341.999-12.20 %-35.77 %-56.54 %
India478.024-2.66 %-9.46 %17.36 %
China62.711-1.19 %-3.95 %-0.62 %