“Tantrum” – Vista Partners Daily Recap 12/20/2018
Individual components of the Dow were mostly down today. Walgreens (WBA) took an especially hard hit with losses of 5.02%, and Walmart (WMT) also saw significant declines of 3.61%. United Technologies (UTX) was another one of the many companies that saw stock slip as they dropped 3.67%.
Outside the Dow, two biotechs Atossa Genetics (ATOS) & Fate Therapeutics (FATE) fared very poorly too as they dropped 9.40% & 4.52% to end the session.
Several factors played a role in the market’s performance today including the announcement by the Justice Department that it would bring charges against two Chinese nationals and Rep. Paul Ryan saying that the president would not sign a Senate funding resolution which would avert the looming government shutdown.
Today’s losses come after yesterday’s decision by the Fed to hike the interest rate and Chairman Jerome Powell’s speech which was unable to calm investor’s jitters. Brad McMillan with Commonwealth Financial Network said, “Yesterday, there is no doubt that markets were expecting a bailout from the Fed – and threw a tantrum when they didn’t get it.”
The significantly leveraged & bearish electronically traded funds, TVIX & TZA, & DGAZ (bets respectively against the broad market & the Russell 2000 were up significantly again today at the close, +10.50% & 5.14% and continue to provide an opportunity with the increased volatility of the markets and its momentum that continues to drive its buggy downhill.
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
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