Dow: -32.29…
Nasdaq: +18.52… S&P: -1.19…
Major U.S. indexes pulled back in afternoon trading, but the moves were small compared with the past few days.
The Federal Reserve and the Bank of Japan hold meetings next week, and investors are looking for clarity on how long ultra-easy monetary policy will continue and what it will mean for a rally that has sent the S&P 500 to highs and global government debt to record-low yields earlier this summer.
I’d be shocked if Abe and Kuroda don’t get all sorts of silly and do more QE, maybe even announce helicopter money. What a beautiful slow motion train wreck this is.
I’m just not so sure what Yellen will do, but gun to my head, she’ll do nothing. Utilities, staples, treasuries and REIT’s say there will be a raise, but who knows??????
Energy, the year’s top performing S&P 500 sector heading into this week, led declines for a second straight day as oil prices fell. Energy shares fell 1.1% and U.S. crude oil declined 2.9% to $43.58 a barrel after weekly data showed rising U.S. stockpiles of refined products.
The IEA slashed forecasts for demand this year and stated that current glut should go well into 2017.
I shorted oil today via the SCO. It feels to me that oil may want to go down and test that 40-41 level again.
Good movement continued today In BREW, ERII, CLVS, TSRO, EMES and ACAD
I think we may continue to see a violent chop going into next week. The Fed and Japan will have a big effect on how things go starting next week.
I mentioned GIMO as one to watch recently and today it finally pooped 7% and broke out. Also, recent sale TBPH is acting up and looks higher so that could be a revisit soon.
I added JAZZ today as new long as well as GOGO
JAZZ is a biotech that has been left for dead, but the technicals are improving and moving up. My stop is back at the March lows. Hopefully we can catch some lightening in a bottle on this one.
GOGO is basing after its move in early August and I like the pattern for now. Also there was some vague chatter today that AT &T may want to make a bid. I bought it for the chart, not that, but you never know.
See you in the morning.