By Investor’s Yak
Homebuilders now represent the only sector holding above the 50 and 200 day moving average (DMA). Healthcare, Pharmaceuticals, and Biotechnologies have finally joined all other sectors by breaking down below those moving averages. And they have been penalized with the bearish “Death Cross”.
With so much devastation in the market, it’s hard to expect much for an end of month rally. Politics surrounding the retirement of Speaker of the House John Boehner and end of fiscal year budget could influence the market in either direction. If the market does rally this week it will probably be short lived. Use caution going forward and keep stop losses in place. Polish up your stock list by looking for strong stocks during down markets, and consider developing a list of stocks to short.
Event calendar affecting markets in September
7 September – Labor Day
16-17 September – Fed meeting
28-30 September – End of month and quarter window dressing; could extend into October.
30 September – end of Fiscal year 2015 (2016 budget must be passed)
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