Selloff Looks To Have Some Teeth
Today's selloff looks like it might last a bit longer than recent pullbacks. Volume picked up noticeably today, and many financial stocks look to be breaking down from their uptrends.
Healthcare stocks took it on the chin today, in what looks like a delayed reaction of the Dems winning Congress. They want Medicare to negotiate lower prices, so any stocks with reimbursement exposure were sold off fairly aggressively.
The DRG fell -2.6%, biotechs were off -2.3%, brokers were down -2.2%, and semis fell -1.9%. The only stocks that closed higher today were energy and materials. Gold and commodity stocks got a boost from the falling dollar.
Bond yields finished flat, with the 10-year at 4.63%. Oil closed $1.33 higher at around $61.05. Natural gas was also higher, closing just below $8. I took a new position in a coal stock today (more on that tomorrow).