{"id":4266,"date":"2016-07-18T16:38:13","date_gmt":"2016-07-18T16:38:13","guid":{"rendered":"http:\/\/173.255.117.96\/?p=4266"},"modified":"2026-09-02T10:01:36","modified_gmt":"2026-09-02T14:01:36","slug":"t3s-daily-recap-report-mr-market-is-still-flirting-with-record-highs","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2016\/07\/18\/t3s-daily-recap-report-mr-market-is-still-flirting-with-record-highs\/","title":{"rendered":"T3&#8217;s Daily Recap Report: Mr. Market Is Still Flirting With Record Highs"},"content":{"rendered":"<p><u><strong>1) Bears Get Grinded Out&#8230; Again!<\/strong><\/u><\/p>\n<p>US markets managed to score a small victory today in the face of shaky European markets and geopolitical troubles in Turkey and other areas.<\/p>\n<p>The <strong>S&P 500 <\/strong>hit an intraday high of 2168.35, putting it less than one point away from making its sixth record high in as many days.<\/p>\n<p>The index rose just 0.2% on the day, though there were several signs of positivity below the surface, with traders taking what I'd call &#8220;selective risk-on&#8221; posture.<\/p>\n<p>We saw notable outperformance in <strong>biotechnology<\/strong> (XBI) and large-cap technology stocks, with\u00a0<strong>Apple <\/strong>(AAPL) managing to crack the $100 mark for the first time since June 6.<\/p>\n<p><strong>High-yield <\/strong>(HYG) was also strong despite a drop in oil prices. In recent months, high-yield and oil have been tightly correlated because of oil's affect on high-yield energy bonds.<\/p>\n<p>Semiconductor stocks were also very strong after Softbank announced it would acquire chip designer <strong>Arm Holdings<\/strong> (ARMH) for $32 billion.<\/p>\n<p>However, with <strong>Netflix<\/strong> (NFLX) down huge this afternoon on its disappointing ugidance, we may see a turnaround in tech tomorrow.<\/p>\n<p><u><strong>2) A Step Back<\/strong><\/u><\/p>\n<p>With the market well past the Brexit and flirting with all-time highs, let's take a step back and look at how far we've come.<\/p>\n<p>So far in 2016, we've seen a major flip-flop.<\/p>\n<p>In 2015, the big winners were <strong>biotechnology<\/strong> (IBB) and select large-cap tech stocks, most notably the <strong>F.A.N.G.<\/strong> (FB, AMZN, NFLX, GOOGL) names, which rose an average of 77.5% last year.<\/p>\n<p>This year, the leaders have been what I call the <strong>G.U.T.S<\/strong>. complex &#8212; <strong>Gold<\/strong> (GLD), <strong>Utilities <\/strong>(XLU),<strong>Treasuries<\/strong> (TLT), and <strong>Silver<\/strong> (SLV). The G.U.T.S. trade is up 26.2% this year after falling -8.9% last year.<\/p>\n<p>Why the change?<\/p>\n<p>Simple &#8212; the Fed got dovish, other central banks are stimulus crazy, and fears of a global slowdown are everywhere. That's given instruments that benefit from low rates a big boost.<\/p>\n<p>Taking a look at the broader indices, the <strong>S&P<\/strong> is up 6.1%, while the <strong>Nasdaq<\/strong> is lagging, primarily due to a huge drop in biotechnology.<\/p>\n<p>However, all US indices are significantly outperforming Europe.<\/p>\n<p>The <strong>Euro Stoxx 50 Index<\/strong> is down -9.7%, though to be fair, it's nearly recovered its post-Brexit losses!<\/p>\n<p><u><strong>3) A Warning in the Russell 2000?<\/strong><\/u><\/p>\n<p>This morning, Jeff Cooper of the <strong><a href=\"http:\/\/www.t3live.com\/newsletters\/daily-market-report\/\" data-cke-saved-href=\"http:\/\/www.t3live.com\/newsletters\/daily-market-report\/\">Daily Market Report<\/a><\/strong> discussed the lagging action in the <strong>Russell 2000<\/strong>, which may be a hint of trouble to come:<\/p>\n<p>This morning's report walks through another V Bottom by virtue of a Central Bank Slingshot following the Brexit Break, propelling a blow-off in the\u00a0<strong>SPX\u00a0<\/strong>and\u00a0<strong>DJIA<\/strong>.<\/p>\n<p>However secondary, indices such as the\u00a0<strong>RUT\u00a0<\/strong>suggests risk is hiding out in the larger cap SPX.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/image.t3live.com\/assets\/buzzbanter\/charts\/original\/071816\/INDEX_$RUT_D_--_1468851455.gif\" alt=\"\" data-cke-saved-src=\"http:\/\/image.t3live.com\/assets\/buzzbanter\/charts\/original\/071816\/INDEX_$RUT_D_--_1468851455.gif\" \/><\/p>\n<p>The same picture that has played out before past significant downdrafts.<\/p>\n<p>Moreover, a big SPX time\/price square-out is on the table going into a potentially important low to high to high cycle with this week also being an important anniversary.<\/p>\n<p><strong><a href=\"http:\/\/www.t3live.com\/newsletters\/daily-market-report\/\" data-cke-saved-href=\"http:\/\/www.t3live.com\/newsletters\/daily-market-report\/\">Click here to learn more about Jeff's Daily Market Report.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>1) Bears Get Grinded Out&#8230; Again! US markets managed to score a small victory today in the face of shaky European markets and geopolitical troubles in Turkey and other areas. The S&#038;P 500 hit an intraday high of 2168.35, putting it less than one point away from making its sixth record high in as many days. The index rose just 0.2% on the day, though there were several signs of positivity below the surface, with traders taking what I&#8217;d call &#8220;selective risk-on&#8221; posture. We saw notable outperformance in biotechnology (XBI) and large-cap technology stocks, with\u00a0Apple (AAPL) managing to crack the $100 mark for the first time since June 6. High-yield (HYG) was also strong despite a drop in oil prices. In recent months, high-yield and oil have been tightly correlated because of oil&#8217;s affect on high-yield energy bonds. Semiconductor stocks were also very strong after Softbank announced it would acquire chip designer Arm Holdings (ARMH) for $32 billion. However, with Netflix (NFLX) down huge this afternoon on its disappointing ugidance, we may see a turnaround in tech tomorrow. 2) A Step Back With the market well past the Brexit and flirting with all-time highs, let&#8217;s take a step back and look at how far we&#8217;ve come. So far in 2016, we&#8217;ve seen a major flip-flop. In 2015, the big winners were biotechnology (IBB) and select large-cap tech stocks, most notably the F.A.N.G. (FB, AMZN, NFLX, GOOGL) names, which rose an average of 77.5% last year. This year, the leaders have been what I call the G.U.T.S. complex &#8212; Gold (GLD), Utilities (XLU),Treasuries (TLT), and Silver (SLV). The G.U.T.S. trade is up 26.2% this year after falling -8.9% last year. Why the change? Simple &#8212; the Fed got dovish, other central banks are stimulus crazy, and fears of a global slowdown are everywhere. That&#8217;s given instruments that benefit from low rates a big boost. Taking a look at the broader indices, the S&#038;P is up 6.1%, while the Nasdaq is lagging, primarily due to a huge drop in biotechnology. However, all US indices are significantly outperforming Europe. The Euro Stoxx 50 Index is down -9.7%, though to be fair, it&#8217;s nearly recovered its post-Brexit losses! 3) A Warning in the Russell 2000? This morning, Jeff Cooper of the Daily Market Report discussed the lagging action in the Russell 2000, which may be a hint of trouble to come: This morning&#8217;s report walks through another V Bottom by virtue of a Central Bank Slingshot following the Brexit Break, propelling a blow-off in the\u00a0SPX\u00a0and\u00a0DJIA. However secondary, indices such as the\u00a0RUT\u00a0suggests risk is hiding out in the larger cap SPX. The same picture that has played out before past significant downdrafts. Moreover, a big SPX time\/price square-out is on the table going into a potentially important low to high to high cycle with this week also being an important anniversary. Click here to learn more about Jeff&#8217;s Daily Market Report.<\/p>\n","protected":false},"author":6,"featured_media":4098,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4266","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>T3&#039;s Daily Recap: Mr. Market Flirts With Record Highs<\/title>\n<meta name=\"description\" content=\"Read T3&#039;s Daily Recap for expert analysis of the S&amp;P 500&#039;s push toward record highs, sector leadership, earnings season, and key market trends shaping trading decisions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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