Market breadth – % of stocks above 200d moving average – continues to deteriorate.
Consumer discretionary has recently diverged from price, with 52% above the 200d.
Consumer staples coming in at 45%.
Materials stronger at 73%, but moving lower.
Info tech slowly turning.
Industrials weakening.
Health care also weakening, but potentially bottoming.
Fins still strong.
Energy ugly.
And defensive, utilities, beasting.
On the economic data front:
The KC Fed manufacturing survey came in at 16.
Richmond Fed at 14 on estimates of 11.
Chicago Fed national activity at -.1 on est. of .22.
Markit flash PMI with strong services and declining manufacturing.
New Home sales making a sharp move lower at -8.9% y/y.
Building permits and car sales from Variant Perception also making similar moves.
Occupancy rates may have peaked.
Household formation as well?
Potentially due to a weakening labor market.
Especially among the bottom 90%.
Which may be why the dollar can’t catch a bid.
Which is interesting because that would typically support commodity breadth.
However there is some strength.
But that is likely to fade.
With resi construction following suit.
And construction vehicles not too far behind?
USD/CNY looks to be bottoming.
After a period of strong capital controls.
Probably not the best time to buy Spoos. Ha!
But where are you gonna put your money? Amiright?
Maybe throw it in AMZN hoping the channel holds.
Or AAPL on a upside 13.
Your call.
Crude could be attractive short term.
Or Google?
Probably not though, as the world’s largest advertiser – WPP – get’s some. Get some!
You could always buy BABA.
You only live once!
H/T Deep Throat
Enjoy your week.
H/t George
