The patient NASDAQ resumed its tenacious 2016 fits this morning as it chewed on a stinky -5% gap down in Apple.
Buyers stepped in front of the early selling, and with Yellen still on deck, they had reason to back off and allow buyers their fun. Sometimes the price action looks like ping pong. Today it more resembled volleyball.
The game ended and sellers took home the victory. Participants expect rates to continue higher–today’s primary industry rotation suggests exactly that. A concentration of Regional Banks spattered across the top gainers list:
Market behavior suggests participant are not too thrilled about the tone of The Fed, nor do they desire to fight with Grandma Yellen.
I like the volatility The Fed’s liftoff path is putting into the futures. There are lots more nuts for a squirrel like me to collect. But I also do not intend to resist The Fed. I have no position trades (2-12 day holdings) on the books.
So everything sucks in 2016 except Utilities and now Regional Banks. My REIT is kicking ass too–something I was told would not happen in a rising rate’s environment. Meh…
Industry is dead. Long live the regional bank manager.
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