Stocks climbed today at the end of the worst quarter for many major markets since 2011. Energy, materials and health-care companies, sectors that lost the most over the past three months, were among the best performers today.
Even with Wednesday’s boost, the S&P 500 is down 6.9% in the third quarter, and all three major U.S. indexes posted their biggest quarterly losses in four years.
Biotech (IBB) popped 4.8% today. Today it held gains, as you remember it gave back all of yesterdays gains.
I get paid to worry, so I’m not convinced by any stretch that the selling is done. I said last night that I though a tepid rally would stall around SPX 1905 and today it did manage a move up to 1920. So now its possible for a move to the 1935-1945 zone because that’s where the 10 and 20 day moving averages come in to play.
Semiconductors had a substantial dead cat bounce today as it was up over 3%, so we caught a stop out on SOXS. I have a feeling though we’ll get that trade back because I’m not convinced this selling is over.
See you in the morning. The bulls need the all important follow through day now.