Please enable javascript in your browser to view this site!

Financials starting to drop off, joining Industrials as yields pullback hard

Into Europe's close, we've seen losses pared back a bit, with SXXP closing down 0.80% and SX5E down -.96%, but Germany's DAX still lower by 1.3%-    German Bund yields have dropped off hard down to .18 bps, or a full 5 bps today alone, while TNX is at 2.315.  IMPORTANT TO NOTE that Financials are beginning to rollover too now and JOIN the weakness seen yesterday in Industrials. and will CONFIRM DAILY SELL SIGNALS today for XLF under 24.47, which would invite weakness down to 24 or 23.70-   Breadth is only lower by about 3/2 negative but nearly 2/1 volume DOWN vs UP.. Utilties have been the big winner today and this week, outperforming every other sector, up 3.6%, followed by Telecom and Real estate and Staples, so the defensive positioning has grown substantially, while Financials industrials and energy have underperformed.  and (Financials looks to worsen now based on today).  BUT Financials and energy are the only 2 sectors for now that are down more than 0.50%, while utilities and telecom UP 0.50% or more.. so we'll need to see some additional deterioration in TECH before expecting too large of a selloff-  The Bond move in particular has been a bit severe this week, as Treasuries are moving in exactly the OPPOSITE direction which would be expected as the market moves into an important fed meeting next month where most think a HIKE SHOULD happen.  but chances still stand near 38%, so the market is NOT prepared at this time , for a hike..   Gainers today include FL, INTU, JWN, KSS, LB, FSLR, NWL, STZ, GPS all higher by more than 2%, while on the downside- RRC, SWN, RIG, HOG, HPE-  Let me know if I can answer any questions