Starting To Shape Up Like An ABC Correction

Aug 13 13:08 2019 Print This Article

Market Recap for Monday, August 12, 2019

The flight to safety was clear on Monday. The 10 year treasury yield ($TNX) tumbled once again, falling 9 basis points to 1.63%, inching closer and closer to the historic TNX lows that were set in 2012 and 2016. The all-time low came at that 2016 bottom as the TNX touched just below 1.34%. Yields fall when treasury prices rise. So large drops in the TNX can be construed as a major flight to safety.

This flight to safety was also apparent in our equity markets. All of our major indices fell on Monday, led by the Dow Jones' 1.49% drop. The other key indices fell approximately 1.20%. All 11 sectors suffered losses, but the defensive groups easily led on a relative basis. Real estate (XLRE, -0.08%) and utilities (XLU, -0.20%) mostly held their ground, but the same could not be said for financials (XLF, -1.91%). Financials are interest-rate sensitive, typically rising when treasury yields rise. Unfortunately, the XLF, not too surprisingly, is down 5.90% during this month-long drop in yields:

Read More

About Article Author

Stockcharts.com

StockCharts.com was founded in 1999 by Chip Anderson, a 10-year veteran of Microsoft. StockCharts.com is a website that provides online investors with high-quality financial charts for making better investing decisions. StockCharts.com is focused on Technical Analysis - the study of price history via charts. They provide award-winning analysis tools, market commentary from respected analysts like John Murphy and Martin Pring, and a huge collection of educational resources that can help anyone become a better, more informed investor.

Related Items

Copper Pipe Is Failing - Don't Get Flooded!

Copper continues to be an indicator of global macro trends. Like a bad movie, the plot keeps getting worse. Below is a chart of the big miners going back to November 2018. There's no magic reason for selecting that date other than it was 200 days ago. Notice how the Australian companies (BHP and ...

Week ahead – Politics continues to dominate

Trade war dominates as China retaliates The next week was likely to be rather quiet and then China announced new retaliatory tariffs against the US. There isn’t too much on the economic calendar, central banks are enjoying the final days of summer and nothing is expected from some of the major po ...

Barrick to invest $34 million to extend Veladero’s mine life

Barrick Gold’s (TSX:ABX)(NYSE:GOLD) CEO, Mark Bristow, announced this weekend that the company is planning to invest $34 million in its Veladero operation in western Argentina with the idea of extending the mine’s life until 2028.  googletag.cmd.push(function() {googletag.display('div-gpt-ad-1 ...

From Trade War to Currency War?

Fred Imbert of CNBC reports the Dow plummets more than 600 points after Trump orders US manufacturers to leave China:Stocks plunged on Friday after President Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China. Apple led the way lower. The Dow Jones Industri ...

Prices: A Week in a Day

The pattern has been repeated.  The Federal Reserve, to which he appointed the Chair, and several Governors does not move as quickly as the President wants on monetary policy. He responds by escalating the trade tension, delivering the independent central bank a fait accompli.  Increasing the t ...

The moment

Elke “Wieselblitz” Vogelsang photo . By coincidence, not design (honest), the last two posts told you not to set your pants on fire, remain calm, go for a tummy rub and be a long-term thinker instead of a timorous chicken. How’s that for mixed images? But you know what I mean. Just chill. Es ...