Getting hard to hold things up. The pattern of early weakness followed by some “dip” buying is being tested. As I have been saying, the robots and AI (artificial intelligence) folks have been stealthily re-adjusting by selling equities and buying bonds and “holding” the market up to mask their sneakiness. But savvy people are starting to catch on and beginning to get nervous. Remember, if the Trump rally is coming to an end (it is) and we go back to where it began on election day, we are looking at 5%-10% minimum on the downside. If a selloff/correction of 5%%-10% was going to happen anyway after the election AND you throw in the Trump rally “fluff”, well now we are looking at 10%-20% downside. Robots may be sensing that, but there is not a robot made that has seen some real downside action. Don’t know about you but it gives me chills.
So, the major averages (DOW, S&P 500, NASDAQ Composite) slowly sold off all day and all three finished with “noticeable” losses. Also slowly, the 10 yr note now yields 2.23% and the VIX is holding around 16. Just saying. Damn, those robots are sneaky and good.
One of the weakest sectors has been the fintech space. The way I track it is via the 50 stock KBW NASDAQ fintech index KFTX which is a more ‘pure’ fintech view since it doesn’t include the heavily crowded Amazon, Tesla, Apple, etc types (wait till selling hits them). Anyway, the KFTX lost 9.69 points (-0.87%) today to close at 1106.62. Advance/decline was ‘nasty’ with 7 stocks up, 41 down and 2 unchanged. Let’s check which issues had a 2 point and/or 3% move today.
ADS -3.99 (234.91)
FICO -2.13 (126.03)
MKTX -2.75 (178.07)
TREE -3.75 (116.80) -3.11%
WETF -.48 (8.22) -5.52%
So, tomorrow is a holiday (Good Friday) and the bunnies (Easter, not Playboy) will be hopping around all weekend. Remember to get your chocolate eggs hidden. Have a very nice evening and weekend.