Monday, July 12, 2010

June 2010 Rewind - June Swoon

June's economic data provided little respite for those doubting the global slowing theory.  The S&P 500, Dow Jones Industrials and NASDAQ 100 cash indices again finished lower for the month by -5.39%, -3.58%, and -6.11%, respectively.

The holiday-shortened first week of July provided a solid reversal, however, and traders will be undoubtedly be keenly watching each earnings report for signs of where markets go from here.  Any early mixed results are almost certain to keep volatility high unless a series of strong cross-sector beats emerges.

Sentiment: Negative
Volatility: Moderate (VIX 23-37)
Direction: Highly Negative




The Style-Box was calculated using the following PowerShares™ ETFs: Small-Growth (PWT), Small-Value (PWY), Mid-Growth (PWJ), Mid-Value (PWP), Large-Growth (PWB), and Large-Value (PWV). The Sector-Ribbon was calculated using the following Select Sector SPDR™ ETFs: Materials (XLB), Industrials (XLI), Energy (XLE), Staples (XLP), Discretionary (XLY), Financials (XLF), Technology (XLK), and Healthcare (XLV). The Standard & Poors 500, Dow Jones Industrial Average and NASDAQ 100 may be traded through ETF proxies, including the SPY or IVV, DIA and QQQQ, respectively.

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