Today’s market
The Dow Jones fell 180.73 points. The S&P dropped 19.45 points. The Nasdaq lost 59.73 points.
Well today was interesting. We gave back all of yesterdays gains. I had an odd feeling that this could happen, but I didn’t want to be so bold as to make a prediction. Yesterday’s rally was thin and was moved by a few stocks, so not usually a good recipe for it to stick.
The big question is where do we go tomorrow. We have the stupid Fed minutes tomorrow, so we get to see how all the jokers at the fed were thinking about the economy n April.
Why was the market down today? A handful of upbeat economic data releases and comments from Federal Reserve officials increased investors’ expectations that rates will rise this year. It seems this banter will never end, but we are constant victims of this parlor game.
Will dovish comments turn the market back up tomorrow? Will hawkish comments extend the selloff? Hopefully the day will come when we can trade on fundamentals and not the fed. This market has tripled though because of the fed so…
Consumer staples shares fell 1.9% and the utilities sector dropped 1.7%, making them the worst performers of the day. These are bond proxies, and will usually get sold if folks think that rates are going up. We have seen head fakes before though.
No conviction. Stocks have struggled for direction recently. The Dow has changed direction from the prior session for seven consecutive trading days on a closing basis.
Europe looked shaky today, the euro etf’s were heavy and the big European banks look to be rolling over a bit. I think Brexit worries are starting to weigh.
Oil closed over 49 today and 50 could be hit as early as tomorrow morning.
I added two new trades today. AMBA short and NUGT long.
See you folks in the morning,
Joe