A solid start for today’s session dwindled into losses as buyers could not hold up the market into the close. Earnings season is upon us and expectations are very low for the first quarter. NYSE volume was higher on the session as NASDAQ volume from preliminary views shows volume eased on the session. Today’s session gives a feel of churning as the market can’t seem to regain its luster and push into new highs. VIX climbed over 5% today as the market struggled to hang onto its gains, but remains below the 20 mark. Crude oil rallied as the dollar index continues to slide on Yen strength. GLD broke out today as gold stocks pushed higher. Not the type of day you want to see leading off a week. Exits will be adjusted accordingly. Heading into earnings season this market is showing signs of weakness.
Small Caps continue to struggle, but weren’t leading the market to the downside. QQQs were leading us to the downside. While IWM didn’t lead us to the downside it did sport an outside reversal day. A bearish signal for the group as investors and traders alike continue to be risk adverse. Known as risk assets many simply do not want to have the exposure and as a result will continue to lag the broader market.
Banks performed well today despite the overall market weakness. There are numerous bank earnings closing out the week. Expectations are for earnings growth to fall and a small gain in revenue. What the street is looking for in earnings is so low it would not be a huge surprise to see banks beat their expectations. Given buybacks and other financial rigging any firm can do there really isn’t a reason they should miss expectations. While most will be grappling with the why and we will not miss on an opportunity simply because we are trying to figure out the why.
AA kicked off earnings season. Let’s see how the rest of the market responds going forward. Have a great week!
