Keith Schneider | Sep 19, 2021 04:36AM ET
Stocks were mostly weaker, led by the S&P 500 and the NASDAQ 100 which were both down about -0.8 % on the week.
Several things are looming over the market… like the debt ceiling needing to be raised, which is no sure thing considering the bickering on Capitol Hill.
Another longer-term issue that was revealed last week was that members of the Federal Reserve have potentially been trading their stock portfolios ahead of major policy decisions.
Although not illegal currently, it could dent the Fed's sacred credibility which is crucial to the stability of the markets, the economy, the dollar, and the United States in general. Does this make decentralized digital currencies look like a serious replacement for fiat currencies and even gold?
Possibly, as a result of all the political chaos, markets behaved in some unusual ways, diverging from classical patterns we’d expect to see during a selloff.
First, Utilities underperformed stocks on weakness. Next on the list of weirdness was that High Yield Debt (AKA…Junk Bonds) outperformed US Long Bonds, with Junk debt flirting with multi-year highs.
We were watching the 210 level in iShares Russell 2000 ETF (NYSE:IWM) (Grandpa Russell /Small Caps) as a line in the sand to hold and keep the long-term bull trend in equities intact.
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