US markets declined for the third straight day, although the selling remained relatively muted. The market surged off the opening bell, but it was all downhill from there as stocks accelerated lower in the afternoon. The downside momentum was at least in part due to a surging dollar. The Euro dropped sharply when European policy makers were quoted as saying they could consider a negative deposit rate if zero interest rates weren’t able to spur economic activity. A small bounce in the last half hour helped the S&P closed right at its 8-day EMA. The Dow, S&P and Nasdaq closed down 0.41%, 0.36% and 0.26%, respectively.
3-D printing stocks tanked for the second straight day. Recent IPO Voxeljet (VJET) fell an astonishing 32.41% after a bearish report on the company was published by Citron Research. Sector leaders 3-D Systems (DDD) and Stratasys (SSYS) dropped 7.87% and 4.00%, respectively, while smaller players Ex-one (XONE) and Organovo (ONVO) fell 8.89% and 17.19%, respectively.
There do appear to be some issues under the hood of the market, but so far the pull-back has been very contained thanks to sector rotation.
Disclosure: Scott Redler is long BAC, ZNGA. Short SPY.
Leave a Reply