Sloppy day
Tech stocks are dragging down broader indexes. The S&P 500 is up 7 points on the day at 3367 after rising as high as 3381. It's the time of day when you can see the wheels come off, especially since the S&P 500 has risen in 7 straight days.
The bigger picture is that prices gave back gains and metals are imploding. The push higher in Treasury yields is also negative for corporate borrowing and a reversal in sentiment. Yesterday, we saw a record low in a junk bond new issue at 2.875% for 10-years. If any semblance of sanity returns to that market then it will weigh on corporate profitability.
Overall, this market has mangled shorts but Congress is deadlocked and it seems like the energy to fix it isn't there, at least without a hefty nudge from financial markets.
Aside from the fundamentals and te
On the sentiment side, the guys over at the Market Ear have a few good reasons to be worried:
Here's a look at the VIX. What's the risk-reward on buying it here? Sure, maybe we get another few days higher and you lose a bit, but if the market turns, it's going to look like gold and silver today.
