Sunday, June 21, 2015

Week in Review (6/15 - 6/19)

With Fathers Day approaching this weekend we are going to keep commentary light so we can enjoy the one day of peace we Fathers deserve.  This week featured new closing highs for the Nasdaq, Russell 2k, and Midcap 400 index.  We are waiting for confirmation on the S&P 500, Dow, and NYSE.   The S&P is testing the upper range of its current consolidation.  Considering the upside breakout in the other indices we think the lagging ones will play catch up.

The VIX continues to dry up and trade towards the lower range but if we look at China we can find plenty of volatility.  Friday alone the Shanghai composite was down 6.4%.  For the week it is down over 13%.    There were many reasons that contributed to the weakness but if we look at price alone a 13% correction is normal after the run this market has experienced. 

From a sector view we saw strength in health care and staples while financials and energy lagged for the week.

Here's what we were reading this week:

Solving the riddle of weak late-day trading

Are bulls really at their lowest level since march

Correlations aren't constant

Rising interest rates and sector performance

SP 500 facts over opinions

For all those Fathers out there have a wonderful and safe Fathers Day!

Ryan Worch is the Managing Director of Worch Capital LLC. Worch Capital LLC is the general partner of a long/short equity strategy that operates with a directional bias and while emphasizing capital preservation at all times.

Ryan on: Ryan Worch on LinkedIn, Ryan Worch on Twitter | Ryan Worch Bio