Bears In Control
September certainly started with the bears in control as stocks lost roughly 1% overall. That’s three straight weak days which creates a bounce set up.
What has become everyone’s favorite index, the small caps, has sold off the most. More downside is ahead and I would view any bounce as a selling opp until proven otherwise.
While my thesis remains the same for more downside, further research on September is more positive, showing an average gain of 1% when the month begins with stocks in an uptrend or after a positive August or both.
Now that stock pundits are bond experts, here is the 10-Year yield which has been rising rather than spiking. I need to do some work on this to look for possible reversals.
On Monday we bought more QLD, more XBI, more IGV, more IYR, more BUG, more PINK and more XOP. We sold PCY.
