Markets Muddled Monday

Markets couldn’t establish any synchronized trends overall. U.S. markets were mixed while emerging markets and China stocks fell. Commodity markets weakened led by sharp declines in energy (crude oil) and metals while bonds didn’t gain any traction either.

Economic data was focused on HMI (Homebuilders confidence) which was much higher at 64 vs prior 61. (I guess builders believe great days are ahead.)

China reported better GDP data than expected but much of it was due to understating the inflation indicator back to 1999. This means “real” GDP is much weaker. Further announced was a note Industrial Production fell to only 5.7% vs 6% expected.

Market sectors moving higher included: Tech (QQQ), REITs (IYR), Biotech (IBB), Retail (XRT), Homebuilders (ITB), Dollar (UUP) and few others.

Market sectors moving lower included: Energy (XLE), Materials (XLT), Emerging Markets (EEM), Brazil (EWZ), Japan (EWJ), Russia (RSX), India (EPI), Malaysia (EWM), China (FXI) Hong Kong (EWH), Shanghai (ASHR), Asia ex-Japan (AAXJ), Spain (EWP), Australia (EWA), Canada (EWC), Canadian Dollar (FXC), Gold (GLD), Gold Miners (GDX), Silver (SLV), Commodity Tracker (DBC), Base Metals (DBB) and many others.

The top ETF daily market movers by percentage change in volume whether rising or falling is available daily.

Volume was Holiday-light while breadth per the WSJ was mostly negative.

Most market sectors weren’t trending the same on Monday. Weaker markets are so due to perceived weak economic demand from China despite some reports being better than expected.

More earnings data on the way throughout the week which should be telling since most reports have been marked much lower. How much these are beaten remains the issue for bulls.

It seems a little early to wait on the Fed already. Nevertheless that’s what it seems like.

Let’s see what happens.