Another Bloodbath: Sector by Sector Carnage - No Hiding Places

The Dow dropped over 1,000 points again today. Carnage is everywhere. Every S&P 500 sector is in a correction.





Health Care

Real Estate


S&P 500 All Sectors

No Hiding Places

A correction, defined as a 10% decline from the top, is underway in every sector of the S&P 500. The Industrial sector went into correction three days ago and is just under the 10% threshold today.

Sector by Sector Analysis

  • S&P 500: Down 3.75% today, 10.2% from January high
  • XLB Materials: Down 3.51% today, 10.5% from January high
  • XLU Utilities: Down 1.12% today, 16.1% from November
  • XLK Technology: Down 4.14% today, 10.4% from January high
  • XLI Industrials: Down 3.86% today, 9.8% from January high
  • XLV Health Care: Down 3.47% today, 11.8% from January high
  • XLRE Real Estate: Down 3.13% today, 12.6% from November high
  • XLE Energy: Down 3.02% today, 14.9% from January high
  • XLF Financials: Down 4.40% today, 10.5% from January high

Everything is correlated. There are no sector hiding spots.

This is just a down payment on what's likely ahead.

Mike "Mish" Shedlock

had an argument with a co-worker that we can't have a significant correction of more than 30-40% unless we get double digit interest rates

Well it's not like you WERE'NT trying to tell anyone . It's too late

The world is run by investors buying "Lands and Brands" (Read: Property & Stock). If I should buy Apple, or all the land in New York, on a credit card, then the book value of these assets are guaranteed to rise by the corresponding amount and I can sleep safe and sound knowing that even if these assets where worth infinity-billion dollars, the market can NEVER supply more of them.

The market value, correspondingly, is premised on the existence of an entire world of rent-seeking investors lining up to buy these assets with even greater figures on their credit cards. By this principle, we are all made ever richer, who own a house, a 401k or a pension.

-But now what the APR on the investors credit card should go up?
-What if the Lands and Brands that we own should go out of fashion for any reason, coming either from the real or the financial economy?
-How much apparent wealth would be lost?
-What untold figures would have be wiped of the ledgers of banks who provided the credit to buy these assets?

If either the stock market or the property market crashes, then world goes into bankruptcy. History proves this.

And Trump took credit for the strong stock market :)

was surprised that bitcoin closed up

Bitcoin is most likely in a severe bear-market. That is when assets have huge rallies. If that happens to the SPY as well, then that is more likely to have entered a bear too. The rallies during bear-markets esp at the start can rival or even exceed the rallies that happen at blow-off tops.


It’s beautiful. The HFT algorithms have dialed in a ten percent correction on the S&P and delivered it in with precision in the last hour of today!s trading session. We now stand at 2581 approx .90 of the 2872 blowoff top put in on Jan 26. I was buying in today will buy more tomorrow. I will be LMAO if this thing pivots directly back up at the opening as it makes it a clear, clean ten percent. Aren’t these bots somethings no else?
As for the sellers in all of this, I presume they were mostly taking profits, exactly as they should do after the bull run we’ve been witness to. I don’t see anything wrong with the last few sessions, it’s good to see an actual marketplace again.

I mean, it’s as though a bunch of algorithm programmers were sitting around at Davos last month and came to the conclusion that it was time for the next correction to take place, so they tweaked their programs and VOIJA! We get equities to correct! First the US, then the rest of global bourses follow in order.

"Everything is correlated. There are no sector hiding spots. This is just a down payment on what's likely ahead."

You conveniently ignored cryptos, which are an asset class, and a very uncorrellated asset class, which is why they are being added by hedge funds. Most cryptos were up today, and some big, like Bitcoin Cash, up over 30%.

You are also misleading readers with your US-centric bias about what's "likely ahead". Where is the big money that's invested around the world going to go when the govt bond bubble pops, and the euro and yen implode? BTW, global investment swamps trade and anything the Fed will do.

The stock market is the only market big enough to absorb the flows, but you continue to stick to your guns, which have been shooting blanks for at least five years. Today, the market backfired and you think your gun went off. In a month stocks and cryptos will be off to the races again, as the rest of the world (periphery), which has a bigger debt problem, implodes ahead of the core (USA).