Posts by Michael Santoli

  • This September sag in stocks looks a lot like the midsummer swoon

    Michael Santoli at Yahoo Finance6 days ago

    Go get checked out for a recurring ailment and the doctor is likely to ask if it feels similar to the last flare-up and how much it hurts in comparison. The symptoms the stock market is suffering from this week strongly resemble those from the July-to-August decline, though the pain inflicted is not quite as bad (yet).

    The current pullback is still a couple of percent shy of the ultimate midsummer decline, which itself was a harrowing but relatively mild setback for a market that hasn’t been hit by as much as a 10% drop in three years.

    As in July, the headline equity indexes – Standard & Poor’s 500 and Dow Jones Industrial Average – are undergoing a “catch-down” move toward small-cap and high-yield credit markets that have been under pressure for weeks.

    Even as the S&P 500 made a new intraday high of 2014 on Friday (prompting some reflection on the bull market’s progress here), the number of stocks propelling the advance was rather thin. And the small-cap Russell 2000 – a pronounced laggard all year – was not invited to the new-high celebration.  

    Read More