Submitted by Eric Bush via Gavekal Capital blog,
Most of the time not a whole lot actually changes in the markets over the course of a month. For example, small cap stocks tend to outperform large cap stocks by a rather mundane 31 bps over the course of a month on average going back to 1996. There are, however, periods of time when extreme moves do occur over the course of a month. We have just experienced one of those times.
Via Dana Lyons' Tumblr,
Bank stocks spiked on rate hike speculation; however, potential chart resistance suggests their upside may be limited.
The buzz surrounding the late-afternoon bounce in stocks yesterday revolved around the news that Jamie Dimon was buying 500,000 shares of JPMorgan Chase stock. As Dana Lyons notes,
Large cap financials have had an awful time in the last month and are 11.7% lower so far in 2016.
As ConvergEx's Nick Colas details, that’s worse than pretty much anything else, including all other S&P 500 sectors, the Russell 2000 small cap index, and even the MSCI Emerging Markets Index.