A Good Time For Homework

dog laptop

Dow: -37.39…
Nasdaq: -20.90… S&P: -6.25…

The market has been going sideways now for about a month and the SPX over that time frame has been in about a 35 point trading range.  Its a good time not to press things, review your portfolio, and try to stay prepared for what could be next…a move to new highs or a  pullback.

U.S. stocks fell Wednesday, dragged down by energy shares as oil prices slumped. U.S. crude oil fell 2.5% to $41.71 a barrel after the Energy Information Administration said inventories of the commodity rose by 1.06 million barrels in the latest week.

Some are skeptical that an informal meeting of OPEC in September will yield an agreement to address low prices, as recent talks about potential production freezes fell apart.  Keep in in mind that Saudi Arabia produced record oil last month.  They don’t like to play nicely in the sandbox with others.  They have proven this before.

The energy sector fell the most in the S&P 500, declining 1.4%.

The economically-sensitive financial sector (-0.8%) demonstrated broad-based weakness as the group saw pressure from declining long-term interest rates.  I’m still pretty sure I don’t trust the financials.  Rates need to go up and sty up before I do, right now rates are just in a trading range.

Biotech (IBB) was weak today  In the ETF, Mylan Labs (MYL 48.79, -1.13) underperformed after reporting a mixed quarter. The group also traded lower in sympathy with specialty pharmaceutical name Perrigo (PRGO 86.00, -9.09).  So basically two stocks helped dragged things down a bit for biotech.

Judging by the email flow it appears most of you are holding ACAD, I am too even though it moved below the stop. I feel the pressure was due to the secondary, so I will leave it on the P&L and will keep you posted. ACAD priced their secondary at 33, so I don’t believe the price will stay below that level for long.

See you tomorrow.



Previous Post
Market Video for 8/8/16
Next Post
Make Your Move Now

Recent Articles