The markets were hot early Monday and then waned as the day evolved. Volume was typically light for this time in August, writes David Fry, founder and publisher of The ETF Digest, and as I’ve been saying contributes to volatility. A late spike in energy hurt stock prices later in the day while bonds continue to move in the opposite direction. This is the relationship (bonds rally on higher energy prices) that traders are fixated upon. The volatility in energy markets and XLE (Energy ETF) will no doubt be an ongoing story that will play-out for some time to come. Chart below.
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