Indices vs. CBOE TNX Percentage Change thru 5/18/2016

Normally I do not want to sound like a broken record … repeating myself, however, this from earlier today,  bears repeating:

The US Federal Reserve message is signaling interest rates may be heading higher as soon as the June FOMC meeting.  That sent stocks yo-yoing between gains and losses Wednesday.  The major indexes, see below, ended up closing pretty much near where they started.  Traders and investors dumped utilities and other high dividend payers, which makes no sense, because the Fed indicated rate increases would be data dependent and at a slow pace.  Bank stocks rose.  Bond prices fell, sending long-term interest rates sharply higher … again, an irrational reaction to expectations of a 0.25 basis points  increase move by the FED in either June, or July.

 Reality check:   Mr. & Ms. Fickle Markets are crying “Oh woe is me!”
 … when in reality retirees and savers, banks and insurance companies, and more NEED higher rates.  The whole global economic system is out of balance and in stagnation.  The Central Banks are working against one another in support of their own economies.  The global markets are working against the Central Banks Quantitative Easing (QE) efforts to stimulate growth and jobs through lower rates.  Look at the foreign exchange rates of the countries using QE … are their currencies weakening vs the USA dollar  … which would be expected … or strengthening?   If the currency of a Country’s Central Bank employing QE is strengthening, there are two primary suspects:   First, The Central Banks QE was/is flawed.  Second, Mr. & Ms. Fickle Markets are working against the Central Bank’s QE efforts to stuff their pockets with cash to the detriment of us all.
Higher rates will help more industries and sectors to grow earnings which will support higher indices.  Higher rates should also lead to stabilization of currencies and a  stable US dollar.  I’ve done my homework, but, there is more homework to do  …  see  Indices vs. VIX,  Indices vs. CBOE TNX, … and more … if a picture is worth a 1000 words then you’ll want to check the charts below.   First …
  • ::Yesterday, the Dow Jones Industrial Average (DJIA  .DJI) pulled back 3.36 points, less than 0.1 percent, to 17,526.62.  For the week, the DJIA is down 8.70 points, or less than 0.1 percent.  Year to date, the DJIA is up 101.59 points, or 0.6 percent.
  • ::Yesterday, the Standard and Poor’s 500 Index (SPX: .INX) rose 0.42 points, less than 0.1 percent, to 2,047.63.  For the week, the S&P 500 is up 1.02 points, or less than 0.1 percent.  Year to date, the S&P 500 is up 3.69 points, or 0.2 percent.
  • ::Yesterday, the Nasdaq composite climbed 23.39 points, or 0.5 percent, to 4,739.12.  For the week, the Nasdaq is up 21.44 points, or less than 0.5 percent.  Year to date, the Nasdaq is down 268.29 points, or 5.4 percent.

 

s&p500 vsTNX20160518

Chart 1, above, is the S&P500 (INDEX SP: .INX) (ETF: SPY) (chart green) versus the CBOE Interest Rate 10 Year T Note (INDEX CBOE: TNX) (chart purple) on a daily percentage change basis since the first correction in August 2015. 

 

s&p500 vsVix 20160518

Chart 2, above, is the S&P500 (INDEX SPX: .INX) (chart green) versus the Volatility S&P500 (INDEX CBOE: VIX) (chart lt. blue) on a daily percentage change basis since the first correction in August 2015.  

 

TNX vsVix 20160518

Chart 3, above, is the CBOE Interest Rate 10 Year T Note (INDEX CBOE: TNX) (chart purple) versus the Volatility S&P500 (INDEX CBOE: VIX) the Russell 3000 (INDEX RUSSELL: RUA) (chart red/green) on a daily percentage change basis since the first correction in August 2015.

 

Russ 1k2k3k 20160518

Chart 4, above, is the Russell 1000 (INDEX RUSSELL: RUI) (chart red),  the Russell 2000 (INDEX RUSSELL: RUT) (chart green), and the Russell 3000 (INDEX RUSSELL: RUA) (chart blue)   on a daily percentage change basis since the first correction in August 2015.

 

All of the above related to :  Index Support and Resistance for Thursday, 5/19/2016

 

  —–  Monday, 5/16/2016 thru Friday 5/20/2016  ——-

 

( x)   All Links can be opened in a new tab or new window …

  •  ( xi )  I will be returning and adding more related chart info including links to charts with  daily, weekly, and monthly chart analysis

 

 

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 (1)  Research and Investing Disclaimer

 

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Hope the above Charts and Indices vs. CBOE TNX Percentage Change thru 5/18/2016 percent calculations for Thursday, 5/19/2016  help your investing and trading planning today …
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