By Bill Taylor-CEO, Fintegration/FintekNews & CIO, TLC Capital Group
10/7/16 Daily Closing Analysis & Week End Review – NASDAQ Fintech Index (KFTX)
Trouble! Yup, looks like a little trouble brewing in fintech land. The NASDAQ KFTX fintech index slipped 9.61 points closing at 1027.57, lower by almost 1% (-0.93% to be precise). That close is only a couple points above a mid September low and that low goes way back to early August. Remember, this new fintech index was only launched on July 18th. It’s been looking soft and now it’s REALLY soft.
As our readers are aware, we track the index’s issues that move +/- 3% intraday and today there were 4. There was one that had a first for the KFTX; a reversal. HAWK, down over 3% early, reversed to close up .68 at 31.83 (+2.18%). Cool! The others; GPN down 2.97 to 76.01 (-3.76%); LC off .10 at 5.95 (-1.65%); and RATE closed at 8.10 off .20 (-2.41%). Both the last two were off over 3% in the morning.
Only 4 of the index’s 49 stocks finished with a better than a +/- 2 point move. ADS (208.93) -5.12; EFX (130.14) -2.07; FLT (172.44) -2.11; and GPN (76.01) -2.97.
Considering Friday’s action in all the markets, it seems the fintech sector may be under a bit more pressure.
So, for the week just ended the KFTX declined 10.71 points (-1%) to close at 1027.57. Not a great week but hey, it’s the weekend and it beat the British Pound…..if you care. Let’s see where the “action” was and ‘what did what’:
ADS -3.27% (208.93)
AXP –3.56% (61.76)…………”I mailed the check, keep looking.”
BKFS -4.60% (39.02)
CATM +9.33% (48.76)………financial results on Oct. 27. Hmmmm??
CBOE +4.88% (67.85)………buying BATS Exchange, Sept. volume up.
DNB -4.72% (130.46)
EVTC -3.60% (16.08)
HAWK +5.49% (31.83)………bullish comments from Wells Fargo.
INFO -3.05% (36.41)
LC -3.72 (5.95)
MKTX -3.86% (159.19)
RATE -2.99% (8.10)…….too close percentage wise to ignore.
WEX -3.19% (104.00)
The above stocks within the index all had moves that breached our +/- 3% threshold last week.
What to look forward to this coming week? Well (glad you asked), earnings season begins in earnest and valuations will be a hot topic. The overall markets will probably be nervous with the coming election poll numbers being discussed (but not a big influence) and be prone to “sudden adjustments”. Most concerning, the KFTX (fintech) index is looking weak……..caution. Have a great week.