Observations & Charts
What a turnaround from the most hyped stock which blew away numbers gave back all its gains. The stock keeps on surprising us every day. You couldn’t find a chink in the numbers but maybe it was just an opportunity to take some profits. The Nasdaq performance yesterday saw a massive turnaround as well as other indices which produced lots of bearish engulfing candle patterns. Basically, wiped out all the gains and closed at the lows. Not a great day for the market but it was on low volumes which I suppose is the only good thing. The VIX rallied to 17 as just 18% of stocks closed in the green; this was the third 1% sell-off we’ve experienced this month. All four major U.S. equity indices are trading below their falling 30 day moving averages. Powell talking today(10am) after a slight hawkish stance form the 2 Fed speakers yesterday. Concerns still rattle around the market with the 30yr mortgage rate hitting the highest level since 2001. Credit deterioration from 2 store credit cards now(Nordstrom yday & Macys the other day). Overall retail earnings have been bad and the well over owned names are getting killed. Theft becoming a bigger problem which are signs of social unrest or people really struggling out there. I’m not a political person but with crime on the rise will this play into the Republican hands.
HOUSING: Zillow home loans offers a 1% down payment option, opening homeownership to more borrowers.. Have we seen this story before??
Charts and other interesting observations below.