That is the key issue in my mind. It is not the selling per se though but the not buying. The swing is bigger. That is issue with mkt divorced from fundies - takes QE forcing buyers to overcome. If so 60-80% of world kinda in QE - all but US/UK. I would also argue mkt on downside was divorced from fundies. Healthcare and techs really only great earnings sectors and getting pummelled. Good time to post this from last quarter:
It is one of my fave guys: Northman on twitter.
As a note, over last 1-2 weeks (from feel, not data),strongest sectors: energy, materials, industrials, bios. Weakest: healthcare (not bios), consumer discretionary (touched on earlier in weekend), banks, techs. Utes mixed. Verizon was one of best stocks with AT&T out there - have not looked recently - now know why!!! Healthcare, at this point clearly most divorced from reality.
This also begs question: is this a simple deadest of the dead bounce? My answer: yes, but isn't that how they all start?
Last note before my reading catch up: a guy whose smugness and extreme bearishness I hate, but who is good - suggested GDX before the move (I exited way way way too early in a crash week as one of few winners). He is almost bullish oil price - above 2009 low. He likes EEM. EEM has quietly been moving higher too. May be like energy, materials, bios....but there for now. I found this from different source initially so lots of folks tracking.
Jon |
