Reply To: Traders Market Weekly: Another Year, Another Reset


Things started to deteriorate noticeably around 10:30 a.m. ET with no specific news catalyst. Instead, it was induced by a general lack of buyer conviction and presumably some ongoing tax-loss selling efforts.

Stocks turn lower in the equity market coincided with an increase in selling pressure for the bond market.

The 10-yr note yield, which hit 3.80% overnight, settled at 3.89%. The 2-yr note yield, which hit 4.33% earlier, settled at 4.35%.

Tesla (TSLA 112.71, +3.61, +3.3%) was able to go against the grain today after ARK Innovation ETF (ARKK) purchased 25K shares, but like the broader market, the stock declined from an earlier 6.6% gain.

All 11 S&P 500 sectors closed in the red with energy (-2.2%) suffering the steepest loss by a wide margin.

Falling oil and natural gas prices provided a catalyst for some profit-taking efforts. WTI crude oil futures fell 0.8% to $78.94/bbl and natural gas futures declined 9.8% to $4.78/mmbtu, which coincided with the arrival of warmer winter temperatures.

Meanwhile, the financial (-0.4%) and health care (-0.6%) sectors sat atop the leaderboard with the slimmest losses.