Stock Market Recap
I write a weekly stock market recap going over the market movement and data that was released for the week. This week in particular I had a good time putting this together, lots of moving parts to the greater picture this week. Little snippet for you below and you can read more here!
"... The market was immune to bad news this week! It also pushed higher despite a jump in market rates, volatile foreign exchange movements, and a Wall Street Journal report that predicts a 75-basis point rate hick at the next FOMC meeting.
Still, stocks stayed strong under the weight of rising rates and press that confirms it. The market’s bullishness even seemed to become its own self-fulfilling catalyst as a sign that the market had already priced in the next rate hike.
What’s especially odd, is that the market was particularly bearish on Tuesday but quickly turned that around. The American Association of Individual Investors Survey showed unusually low bullish sentiment and unusually high bearish sentiment. Bearish sentiment among investors hit 53.3% versus a historical average of 30.5%. Bullish sentiment fell to 18.1% versus an average of 38%. Those readings and their widespread must’ve been taken as contrarian indicator to buy/swing trade beaten up stocks. The view that the market was in an oversold condition sparked some bargain buying efforts that picked up pace later in the week.
Mega-caps led this week. The Vanguard Mega-Cap 300 Growth ETF ($MGK) jumped 3.99% this week. All 11 S&P 500 sectors made gains for the week, 8 of them making at least +3.2%. With the market’s strength this week, the CBOE Volatility Index fell 10.5%..."
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