2021-04-11

Markets Rotating or Topping Out

The major indexes were higher last week, but mostly driven by the large tech companies. Momentum leaders were down and down big in the case of energy. Small cap biotech (XBI) fell more than 6 percent. Biotech (IBB) declined more than 2 percent. Strength in gold and silver miners, along with long-term bonds, adds to my suspicion that volatility is going up. Earnings season kicks into high-gear on Wednesday with the big banks reporting.
The spike in the S&P 500 in recent days reminds me of January 2018. Doesn't necessarily mean anything, but with volatility cheap...

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