Massive Sell-Off Strikes Leading U.S. Stock Market Industry

“Daily Economic/Investment Trends for the Savvy Investor”

MARKET LEADER FAILS…

WARNING SIGN: Massive Selloff Strikes Leading U.S. Stock Market Industry

Much has recently been written about how the bull market in U.S. stocks has been heavily dependent upon just a handful of sectors. For example, Bloomberg Market data recently showed nearly all of this year’s gains in the S&P 500 index has come from just two sectors: healthcare and retail.

While market advances are always led by a handful of sectors, today’s extreme concentration of leading sectors and industry groups hasn’t been seen since the dot-com bubble era.

Now, over the last few trading sessions, there has been significant structural damage to the existing long-term uptrend in U.S. stocks.

According to Bloomberg:

“Ignited by a plunge in Walt Disney Co., shares tracked by the 15-company S&P 500 Media Index have tumbled 8.2 percent in two days, the biggest slump for the group since 2008. The drop erased all of 2015’s gains for a group that has posted annualized returns of more than 33 percent since 2009.”Bloomberg

Why is this a big deal?

Because until this recent sell-off, stocks in the media industry led the bull market. This small group of 15 stocks has gained more than 500% since their 2009 lows, making them the top performing industry of the entire bull market.

“More than technology or even biotech, media stocks have ruled the roost during the share advance that restored $17 trillion to American equity prices since the financial crisis. Companies from CBS Corp. to Tegna Inc. and Time Warner Cable Inc. are among stocks with the 60 biggest increases during the stretch…

Disappointing results from Disney after the close of trading Tuesday sparked the two-day rout. Selling spread to other television and publishing companies as quarterly reports from CBS to 21st Century Fox Inc. and Viacom Inc. were marked by shrinking U.S. ad sales and profits propped up by stock buybacks.”Bloomberg

The takeaway: The leader of the entire U.S. bull market has just collapsed.

While the long-term uptrend in U.S. stocks remains intact, it is certainly weakening. When leading sectors and industries start to fail, it is similar to failing engines on a high-flying plane. It usually ends badly.

When the leaders in any market begin to fail, it’s wise to tighten up your stops and tread with caution.

Be advised.

Until Monday,
Jerry Robinson

See Today’s Trading Idea Here

— Paid subscriber access only —
View our Plans and Pricing here

Bankruptcy of our Nation: Now in Audiobook Format

Real-Time Market Update

(Courtesy of Finviz.com)

CLAIM: RUSSIA ATTACKS PENTAGON. Investigators say they believe the same Russian hackers that carried out attacks on the White House and State Department last year and the attempted penetration of the Pentagon last month were responsible for a major cyberattack that shut down the Joint Chiefs of Staff email for the past 11 days. (DB)

SOLAR STOCKS FALL. Solar energy stocks are getting hammered. (Benzinga)

BOE RATE HIKE 2016?. The Bank of England signaled it remains on course to start gently raising interest rates in the U.K. early next year. (WSJ)

SENATE PRESSURE BUILDS OVER IRAN DEAL. During the first half of 2015, the pro-Israel lobbying giant AIPAC spent a record $1.67 million campaigning against the nuclear agreement. The group is also pumping money into a new 501(c)(4) group called Citizens for a Nuclear Free Iran. That outfit is expected to spend at least $20 million on advertising and messaging campaigns in as many as 40 states to oppose the deal. (Foreign Policy)

Featured image courtesy of eldar nurkovic / Shutterstock

Comments are closed.

GET

Jerry
Robinson's

Best

SELLING BOOK

PURCHASE TODAY

PRAISE FOR JERRY 'S BOOK
"Jerry Robinson does an excellent job of explaining the 'Petrodollar' system. His book explains exactly how this will come about, but equally important is the comprehensive section on what you can do to protect yourself."- G. Edward Griffin, Author and Film-Maker

Paperback | Audiobook

Download Free Chapter

Precious Metals Update (Sponsor)

Listen as veteran precious metals advisor, Tom Cloud, keeps you up-to-date on the gold and silver markets. Updated biweekly.

FREE DOWNLOAD: Gold and Silver Investor's Kit

Join Our Community

Join Today!

Unlock instant access to:

- Daily trading ideas
- Model portfolios
- Ongoing video education
- Daily premium newsletter
- And much more!

Profitable Trading Ideas

View our Trading Services

PODCAST: 2024 Year in Review

Dec 18, 2024

Segment 1: 2024 Year in Review SEGMENT BEGINS AT 03:25 In this segment, we’ll take a comprehensive look back at the major financial events that shaped this year. Segment one topics include: 2024 stock market highlights Top performing ETFs, Dividend Aristocrats,...

The 30-Minute Breakout Blueprint (Module 10)

Dec 17, 2024

(Recorded on 12/17/24) In Module 10, we wrap up the course with key takeaways, practical tips, and recommended resources to support your continued learning and growth as a trader. We also help you refine and personalize this strategy and leave with encouragement for...

The 30-Minute Breakout Blueprint (Module 9)

Dec 17, 2024

(Recorded on 12/17/24) In Module 9, we put the 30-Minute Breakout Blueprint into action with a live day trade, covering everything from chart setup and identifying the breakout to placing orders and taking profits. We’ll also discuss the importance of journaling...