The financial sector dropped 3% in value on Monday and hampered Wall street efforts to maintain a winning streak that went back five days. The great depression is not it seems a point in history from the early part of the 1900’s, it is a term to describe the moves in equity trade that give back small slices of recent gains. Earnings season in underway and the stock markets are proving once again that they are in a cycle of trade where they are dominating oil, gold, and the dollar. The links are undeniable at the moment, and it is hard to see the major forex pair and oil moving too far from here unless big volume increases are seen soon to enable the upside moves to hold.
At Monday’s close of floor trading on the NYSE stocks had closed with their first loss in five sessions, dropping on average 0.8%. The DOW was on 7975 after a loss of 41 points (0.5%) while the S&P finished on 835, lower by 0.8%. The technology-heavy NASDAQ closed on 1606 after falling 15 points (0.9%).
On Thursday, the XLF financial sector ETF dropped 0.26 points (2.80%) to 9.43 (it stood at 26.00 last year). The volume was light; 180,000,000 ETF's changed hands against a rising daily average of 241,000,000.
Treasuries fell as traders weighed the move from riskier assets to bonds, but followed the path of least resistance on the day and moved note values lower as the absorption of massive flows of new debt come to market on April 8th.
Crude for April delivery was recently trading down $1.36 (2.60%) at $51.15 per barrel.
Gold for April delivery was recently trading down $27.00 (-3.01%) to $870.30 per ounce.