Intraday Selloff Hits Financials, Materials Hardest

September isn't getting off to a good start. Since its intraday peak at 10:07 AM ET, the S&P 500 is down 2.70%. We calculated sector performance over the same time to see which areas of the market are leading it lower. As shown below, Financials are down the most with a decline of 4.03%, followed by Materials (-3.54%), Consumer Discretionary (-2.95%), and Industrials (-2.81%). Utilities have held up the best intraday, but the sector is still down more than 1.01% since 10:07. The S&P 500 is now just a point above the 1,000 level, and if the downtrend continues intraday, we'll be in the 900s again very soon.

click to enlarge

Comments

[Mad Hedge Fund Trader]

hjj. US stocks are now the most expensive they have been in seven years, and never really got cheap during the March low, just fairly valued. At least I have some good company in my views, which are also shared by David Rosenberg of Gluskin Sheff, the former chief equity strategist at the late Merrill Lynch. The “faith based” rally is now discounting a GDP growth rate of 4.0%, which has a snowball’s chance in Hell of actually occurring. This is up dramatically from the 2.5% growth rate the S&P 500 was discounting when the index was at 667. The best stock market rally since 1933 added an unprecedented eight PE multiple points to stocks, and there is now more risk in the market than the 2007 peak. Underweight portfolio managers and momentum driven day traders are to blame. It’s what happened after the 1933 rally that scares me. Needless to say, stocks offer no value here. You can sign up for David’s well thought out research for free by going to his website at www.gluskinsheff.com/.

2009 Sep 01 02:13 PM

[Greyowl]

With all due respect...

Sure, the market hit a snag, correction, whatever.

But you have been consistently advising to stay away from stocks from April (or even March according to this comment? I remember only April's and later comments) causing your clients and people who listened to lose money when others (including me) were making good profits.

A broken clock is right twice a day... Or a year?

If I in my profession was making such bad advices, I would stay low and tried to learn from my mistakes.

I guess it is not true for finance professionals.

That's why they got us into this mess in the first place. And they do not admit that.

On Sep 01 02:13 PM Mad Hedge Fund Trader wrote:

> hjj. US stocks are now the most expensive they have been in seven
> years, and never really got cheap during the March low, just fairly
> valued. At least I have some good company in my views, which are
> also shared by David Rosenberg of Gluskin Sheff, the former chief
> equity strategist at the late Merrill Lynch. The “faith based” rally
> is now discounting a GDP growth rate of 4.0%, which has a snowball’s
> chance in Hell of actually occurring. This is up dramatically from
> the 2.5% growth rate the S&P 500 was discounting when the index
> was at 667. The best stock market rally since 1933 added an unprecedented
> eight PE multiple points to stocks, and there is now more risk in
> the market than the 2007 peak. Underweight portfolio managers and
> momentum driven day traders are to blame. It’s what happened after
> the 1933 rally that scares me. Needless to say, stocks offer no value
> here. You can sign up for David’s well thought out research for free
> by going to his website at www.gluskinsheff.com/.

2009 Sep 01 02:49 PM

[whidbey]

Thanks for the picture, it looks normal for a correction or something more lasting. Nothing to spend too much time with until a trend emerges. It looks like we will be down 200+ today, bounce tomorrow and get serious on trend building the 3th.

2009 Sep 01 03:51 PM

[Danny Furman]

Actually he, and many others who think stocks are now overpriced, advocated buying growing emerging markets in March. After gains of 100% across the board, those markets became expensive. They have tanked progressively, starting with the worst economies (Russia then India then Brazil then China). It's our turn now, and we never had anything to justify the 50% run in the first place.


On Sep 01 02:49 PM Greyowl wrote:

> With all due respect...
>
> Sure, the market hit a snag, correction, whatever.
>
> But you have been consistently advising to stay away from stocks
> from April (or even March according to this comment? I remember only
> April's and later comments) causing your clients and people who listened
> to lose money when others (including me) were making good profits.
>
>
> A broken clock is right twice a day... Or a year?
>
> If I in my profession was making such bad advices, I would stay low
> and tried to learn from my mistakes.
>
> I guess it is not true for finance professionals.
>
> That's why they got us into this mess in the first place. And they
> do not admit that.
>
> On Sep 01 02:13 PM Mad Hedge Fund Trader wrote:

2009 Sep 01 04:15 PM

[Greyowl]

Well, he's been suggesting to buy emerging markets for quite a while - for example, he suggested to buy China (FXI) in his article on August 25. FXI was around $42, higher than now. Let me remind you that FXI went almost immediately down 53%.

You'd lose more money with him as SPY lost 35% at the same time.


On Sep 01 04:15 PM Danny Furman wrote:

> Actually he, and many others who think stocks are now overpriced,
> advocated buying growing emerging markets in March. After gains of
> 100% across the board, those markets became expensive. They have
> tanked progressively, starting with the worst economies (Russia then
> India then Brazil then China). It's our turn now, and we never had
> anything to justify the 50% run in the first place.

2009 Sep 01 04:52 PM

[Greyowl]

Sorry, I didn't mention he suggested to buy FXI on August 25, 2008.

He also suggested to buy Russian ETF RSX on August 21, 2008. Again, it never went up but only down, losing 75% vs 42% in SPY at the same period.

So, you see he repeats the same advice over and over again, regardless. And sometimes it works...

2009 Sep 01 05:05 PM

[john s. gordon]

greyowl -

if the man throws enough darts he might hit the bullseye once in a while. the rest of the time you lose money.
> jack

2009 Sep 01 06:11 PM