There is a saying in politics: "As goes Guam, so goes
[probably popularized in Guam -ed]
In equity speculation it's "As go the financials, so goes the market.
We noted last night that heavy and large average trade size was going through after the cash market close in S&P futures and it seemed overnight we needed one more push to flush out some more chasers before today's less than euphoric macro prints (aside from CFNAI's market-centric index) stalled the Fed-induced excitement. Financials had their worst day of the year (worst performing sector 2 days in a row), down just under 1% as did the Tech and Energy sectors as Utilities were best once again. Volumes were up with ES at its 50-day average and NYSE volume second highest of the year as ES (the e-mini S&P 500 futures contract) slid 20 points or so from opening highs up near 1330...MOREAnd MarketBeat:
Brace for the Market’s QE Tantrum, Says Analyst
Taking note of Thursday’s exhausted risk-asset rally, David Gilmore at FX Analytics draws a line between the Lunar New Year banquet and Wednesday’s Fed meeting.
“It is hard not to notice that stocks have turned over some, bonds have put in at least a temporary top, and the dollar is firmer,” Gilmore wrote in a research note.
The reason why can be summed up in two words: quantitative easing...MORE