4:20 pm ET: Given yesterday's Obama victory, I was sure that gold would be the big winner today. It did go up, but I was expecting a monster move given that QE infinity seems all but assured. Instead, we got movement in the greenback and treasuries probably due to the riots breaking out in Greece. (Both are considered safe-haven investments.) Muni bond funds were up across the board as investors look for non-taxable dividend vehicles. One of the biggest movers in this space today is Blackrock's MFL muni bond fund. This issue gained a whopping 2.6% today (a big move for a bond fund). The fund's yield is 5.5%, a value typical of this group.
With Obamacare back on the table, it's no surprise that healthcare stocks surged today. The biggest movers include Centene (CNC, +10%), Tenet Health (THC, +9.7%), and HCA (HCA, +9.5%). All of these sport bullish charts.
Although individual healthcare issues rallied, the pharma etf (NYSEARCA:PJP) had a bad day along with every other sector etf. Commodities were also down as the sugar etf (NYSEARCA:SGG) broke $70 support, hitting a new yearly low. With downward momentum gaining, this issue will be testing its next support level at $65 in no time.
The major averages closed the day unable to hang onto critical support levels. This is the bad news. The good news is that today's sell-off should have been accompanied by a bigger jump in the VIX and the fact that it's still under 20 is a sign that the market could rebound. I'm not holding my breath for several reasons: 1. The unrest in Greece and the fact that the entire European economy is slowing down; 2. The looming problem of the fiscal cliff; and 3. The fact that businesses will face the Obama administration's plans for increased corporate taxation and regulation which will cause them to hoard money instead of expanding their businesses (and thus hiring more people). For all of you who with unprotected long positions, now is the time to buy it while volatility is still relatively low.
Note to Subscribers: There are three new Channeling Stocks. The latest Stock of the Day short is shaping up pretty well, but remember that this stock has a habit of moving rapidly so I'd suggest taking partial profits as they arise.