The Moskowitz Report (TSLA, XRT, NFLX, GLD, BAC, FB, GOOGL, IYT, IBM, JPM, BA, AAPL, JPM, AMZN, GS) - Stock Market Commentary For Wednesday, March 22, 2017
Today was ugly right from the start. The market seemed to be tied to the oil again with a healthy dose of woes in the financial sector. The other un-coupling was the oil and gold vs. the US$. The 10year (traded 2.61 on Fed day last week) continued lower again overnight and this morning trading in the 2.44 range. This is an extreme move over a 4 day period, and it goes hand in hand with a weaker US$. Gold rallied hard after its successful test of $1,200 and its break above $1,220. Resistance is now between $1,250-60.
The oil’s close below $48.35 sets us on the way to a test of $44. As mentioned last week, support by any group or individual inevitably fails. This clearly de-coupled from the lower US$ and the GLD. There is also a glut of “winter blend” gas in storage and when the season changes shortly it will have to continue to be stored or exported to make way for “summer blend.”
Internals were also lousy. The numbers closed at their worst levels of the day on both the NYSE and NASDAQ. NASDAQ was slightly worse at almost 8:1 volume and 5:1 A/D vs 5:1 volume and 4:1 on NYSE.
Retail made new lows with XRT -2%, transports, IYT -1.91%, vs DJIA -1.14%, S&P -1.24%, NASDAQ -1.82%, and the Russell -2.71. From my prospective it seems like there was a lot of profit-taking in the areas that had good gains before they evaporated. It will take another day or two before the “buy on dips” folks feel comfortable enough to step back in. This is typical of profit-taking, not a top, but time will tell.
The big names were clearly not exempt; GOOGL -17.70, AAPL -1.91, AMZN -14.73, BA -3.39, TSLA -11.17, IBM -1.89, NFLX -3.44, and the financials were stung with GS -9.59, JPM -3.03 and BAC -1.55 (a whopping 6.34%.)
With the exception of GLD and the leveraged Inverse ETFs there was nowhere to hide. As always we’ll take some solace in the fact:
Tomorrow’s another day…CAM
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