Markets Near Free Fall

Markets are collapsing due to continuing uncertainties over current Fed policies, future Fed policies, currency and emerging market issues, and recent economic data disappointments.

Monday began with economic data from China, with “official” government data showing PMI declining to 50 from 50.5.

In the U.S., economic data was poor beginning with PMI Mfg Index dropping to 53.7 vs 53.9 expected, and prior 55. ISM Mfg Index came in at 51.3 vs 56 expected, and prior 57.00. Construction Spending was flat 0.0% vs 0.0% expected, and prior at 1.00%. Auto sales were also weaker with GM reporting a 12% drop in January sales; Ford -7%, and Chrysler, the lone gainer, at 8%.

Many are suggesting that all this bad economic data is due to cold weather and such claims are frankly silly. For example, Bank of America suggested today that the entire global slowdown is primarily the result of cold and snowy weather in the U.S.

Markets opened lower and stayed that way throughout the day as resting protective stops were hit. Sectors leading the way lower included just about everything with few exceptions. Sector-wide equity market performance consistently exceeded losses of over 2%. Sector gainers were few and far between but included: Gold (GLD), Bonds (TLT), Inflation-Protected Treasury Bonds (TIP), Investment-Grade Corporate Bonds (LQD) and various hedged-ETFs like AdvisorShares’ Ranger Bear ETF (HEDGE).       

Trading volume Monday was very heavy and breadth per the WSJ was negative with some sectors sporting 10/90 advance/decline ratio.

Below are chart presentations for daily top 5 ETF market movers, rising and falling, by percentage change in volume for each category. To permit better discovery inverse or leveraged issues are not included. Market movers are a tool investors can use to shorten their search for suitable ETFs, without being dominated by the usual high volume issues.

Charts are either daily or weekly . Simple Moving Averages are 5 (red) & 10 (green). Proprietary high (HI) and low (LO) indicators can, but not always, indicate a reversal in the trend is at hand.  Find out how you might profit by signing up to be a premium member now. Follow us on twitter and become a fan of ETF Digest on facebook .

Markets are collapsing due to continuing uncertainties over current Fed policies, future Fed policies, currency and emerging market issues, and recent economic data disappointments.

Monday began with economic data from China, with “official” government data showing PMI declining to 50 from 50.5.

In the U.S., economic data was poor beginning with PMI Mfg Index dropping to 53.7 vs 53.9 expected, and prior 55. ISM Mfg Index came in at 51.3 vs 56 expected, and prior 57.00. Construction Spending was flat 0.0% vs 0.0% expected, and prior at 1.00%. Auto sales were also weaker with GM reporting a 12% drop in January sales; Ford -7%, and Chrysler, the lone gainer, at 8%.

Many are suggesting that all this bad economic data is due to cold weather and such claims are frankly silly. For example, Bank of America suggested today that the entire global slowdown is primarily the result of cold and snowy weather in the U.S.

Markets opened lower and stayed that way throughout the day as resting protective stops were hit. Sectors leading the way lower included just about everything with few exceptions. Sector-wide equity market performance consistently exceeded losses of over 2%. Sector gainers were few and far between but included: Gold (GLD), Bonds (TLT), Inflation-Protected Treasury Bonds (TIP), Investment-Grade Corporate Bonds (LQD) and various hedged-ETFs like AdvisorShares’ Ranger Bear ETF (HEDGE).       

Today we featured a short video on AdvisorShares Ranger Hedge ETF (HDGE) from both weekly and daily chart perspectives.

Trading volume Monday was very heavy and breadth per the WSJ was negative with some sectors sporting 10/90 advance/decline ratio.

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