{"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":"2016-07-18T16:38:13","modified_gmt":"2016-07-18T16:38:13","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’s Daily Recap Report: Mr. Market Is Still Flirting With Record Highs"},"content":{"rendered":"

1) Bears Get Grinded Out… Again!<\/strong><\/u><\/p>\n

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

The 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

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 “selective risk-on” posture.<\/p>\n

We saw notable outperformance in biotechnology<\/strong> (XBI) and large-cap technology stocks, with\u00a0Apple <\/strong>(AAPL) managing to crack the $100 mark for the first time since June 6.<\/p>\n

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

Semiconductor stocks were also very strong after Softbank announced it would acquire chip designer Arm Holdings<\/strong> (ARMH) for $32 billion.<\/p>\n

However, with Netflix<\/strong> (NFLX) down huge this afternoon on its disappointing ugidance, we may see a turnaround in tech tomorrow.<\/p>\n

2) A Step Back<\/strong><\/u><\/p>\n

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

So far in 2016, we've seen a major flip-flop.<\/p>\n

In 2015, the big winners were biotechnology<\/strong> (IBB) and select large-cap tech stocks, most notably the F.A.N.G.<\/strong> (FB, AMZN, NFLX, GOOGL) names, which rose an average of 77.5% last year.<\/p>\n

This year, the leaders have been what I call the G.U.T.S<\/strong>. complex — Gold<\/strong> (GLD), Utilities <\/strong>(XLU),Treasuries<\/strong> (TLT), and Silver<\/strong> (SLV). The G.U.T.S. trade is up 26.2% this year after falling -8.9% last year.<\/p>\n

Why the change?<\/p>\n

Simple — 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

Taking a look at the broader indices, the S&P<\/strong> is up 6.1%, while the Nasdaq<\/strong> is lagging, primarily due to a huge drop in biotechnology.<\/p>\n

However, all US indices are significantly outperforming Europe.<\/p>\n

The Euro Stoxx 50 Index<\/strong> is down -9.7%, though to be fair, it's nearly recovered its post-Brexit losses!<\/p>\n

3) A Warning in the Russell 2000?<\/strong><\/u><\/p>\n

This morning, Jeff Cooper of the Daily Market Report<\/a><\/strong> discussed the lagging action in the Russell 2000<\/strong>, which may be a hint of trouble to come:<\/p>\n

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\u00a0SPX\u00a0<\/strong>and\u00a0DJIA<\/strong>.<\/p>\n

However secondary, indices such as the\u00a0RUT\u00a0<\/strong>suggests risk is hiding out in the larger cap SPX.<\/p>\n

\"\"<\/p>\n

The same picture that has played out before past significant downdrafts.<\/p>\n

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

Click here to learn more about Jeff's Daily Market Report.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

1) Bears Get Grinded Out… 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&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’d call “selective risk-on” 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’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’s take a step back and look at how far we’ve come. So far in 2016, we’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 — 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 — 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. Taking a look at the broader indices, the S&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’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’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’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"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/4266","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=4266"}],"version-history":[{"count":0,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/4266\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/4098"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=4266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=4266"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=4266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}