Everyone seems to be on board with a December rate hike. US, Canadian and European financial stocks are all shooting higher. Arthur Hill pointed out some interesting action in the financial sector. Defence stocks, Insurance, financials, healthcare, private prisons, biotechs are running while the Nasdaq tech stocks are getting crushed. Is this just political posturing or is it something more?
The market is aggressively changing positions. Today shows a massive push down in AMZN, FB, NFLX, GOOGL, AAPL.
Facebook.
Apple.
Alphabet.
Netflix.
This is significant. Be careful picking your winners here. When the Dow outperforms this much and the Nasdaq and the $SPX weaken, this suggests safety not bullishness.
The US Dollar is soaring, which is what we talked about the last few weeks. Commodities are a real difficult hold in a rising US Dollar, especially a sharply rising US Dollar. I'll be hosting the Commodities Countdown webinar 2016-11-10. With so many changes in the market following the election, we have lots to talk about.
Good trading,
Greg Schnell, CMT ,MFTA.
