Investors had the weekend to examine Friday’s Employment Report more thoroughly and came to the conclusion that perhaps they were good enough for the Fed to raise interest rates in December.
At least that was the thinking of SF Fed Governor John Williams over the weekend in a speech Sunday saying a rate hike now “makes sense”.
Well, nothing going on with the Fed and financial markets “makes sense” lately.
Given those comments, along with others investors’ decided the best route now was to sell keeping conditions on hold until after the December Fed Meeting.
Market sectors moving higher included: This is easy; Gold Stocks (GDX) and Volatility (VIX).
Market sectors moving lower included: Everything else.
The top ETF daily market movers by percentage change in volume whether rising or falling is available daily.
Volume increased on selling and breadth per the WSJ was negative.
There isn’t much in the way of economic data this week until Retail Sales show up on Friday.
For now investors are of two minds. On the one hand they’re trying to reconcile good news being bad given Friday’s Employment Report means a possible interest rate increase sooner than expected; and, with the reality that Friday’s good news was actually not as good as advertised.
This may hold investors on pause until after the December Fed Meeting.
Let’s see what happens.
