Friday, August 10, 2018

IBD Points Out an Interesting Anomaly On A Generally Down Day

This was a couple hours before the close.

From Investor's Business Daily, 1:35 PM ET:

Why Today's Drop In Stock Indexes Has A Bullish Aspect 
The stock indexes gapped down Friday in a decline that broke with the pattern of mild price moves over the past couple of weeks.
The Nasdaq composite was down 0.5% and on pace to end an eight-day win streak. The S&P 500 gave up 0.6% and the Dow Jones industrial average 0.8%.
The three main indexes saw the largest declines since the technology sell-off in late July. Friday's slide marked a change in character from earlier this month, when indexes made gains or declines that were mild.
The Russell 2000, however, was up 0.2%. Small caps tend to have less exposure to foreign markets, which helps explain their outperformance.

Volume was higher on the NYSE and flat on the Nasdaq compared with the same time Thursday. Declining stocks led advancers by a 7-to-4 ratio on the NYSE and by 6-5 on the Nasdaq.

A stock sell-off in Europe spread to Wall Street, after tensions heated up between the U.S. and Turkey over Turkey's detention of an American pastor. President Trump ordered some tariffs on Turkish steel and aluminum to be doubled. The move worsened Turkey's financial troubles.

Turkey's currency plunged to a record low Friday. European central banks warned of trouble for some banks with heavy exposure to Turkey. Worries of contagion hit the major European markets. The London FTSE 100 tumbled 1%, the German DAX 2%, and France's CAC 40, 1.6%.

The iShares MSCI Turkey Investable ETF (TUR) plummeted 15% to the lowest level since March 2009. The ETF already had been in decline since March of this year.

Impressively, leading stocks performed way better than the broad market. The Innovator IBD 50 Fund (FFTY) was up 1.8% and rising back above its 50-day line.

Thirty-three of the IBD 50 stocks were higher, a broad show of force for the leaders. But the main reason for the IBD 50's success rested on a single stock: Trade Desk (TTD).
The online advertising platform soared 36% to a record high, gapping well above its 50-day moving average....MORE
Two-thirds of their 50 leading stocks were up at the time?

At 3:45 PM ET they posted "Apple, Indexes Fall On Turkey Fear; These 6 Stocks Hit Sell Signals" but it's that earlier story that caught my attention.

Their last market post was at 4:16 EDT with an overview of the closing action:
Small Cap Stocks Resilient As Intel, Caterpillar, Goldman Weigh On Dow

Seriously, at 1:35 EDT the DJIA was down 205 at 25,304 and 33 of the IBD 50 were up?