Fed gains quickly given back
The Market:
All the gains saw from yesterday’s Fed driven rally were taken back in today’s trading with the Dow (DIA) and S&P 500 (SPY) closing down nearly 2% while the Russell 2000 (IWM) lost 2.7%. The NASDAQ (QQQ) was helped by Apple (APPL) which managed to post a small gain of 0.22% on the session but the QQQ’s still finsihed 1.62% lower.
Some big numbers put up across the sectors led by Energy (XLE) which finished down 3.67% and is now over 4% lower on the year. The XLE underperforming is not new but the slope of this decline is surprising. We think that shorter term traders should watch the XLE for a trade-able bounce but only for a trade and longer term investors will likely see lower levels before the downside completes. Today’s best performer was the Consumer Staples (XLP) which managed to only lose 1% followed by the Utilities (XLU) down 1.63% and Technology (again helped by AAPL) down 1.66%.
Reporting EPS 10/10/14 Pre-Market: