Today, Monday March 12, the Industrial Select Sector SPDR ETF (XLI) fell 1.24%, declining more than either the Standard & Poor’s 500 (down 0.13%) or the Dow Jones Industrial Average (down 0.62%.) I think this is an indication that fears that the Trump administration will still manage to set off a round of trade retaliation to its higher tariffs on steel and aluminum are still with us. Â
Lots of folks out this morning trying to explain why U.S. stocks are up so strongly today after Thursday’s thrashing and two lackluster trading session on Friday and Monday. One explanation I’m hearing a lot is that President Donald Trump sounded “more” presidential in last night’s speech laying out his secret plan for continuing the war in Afghanistan. Another explanation that I’m hearing is that there are rumors of progress in Washington on the Republican tax plan. To which I say, Please… It’s August when lighter trading volumes magnify every wrinkle into the Rockies. The most likely reason that the market is up today is that it was down on Thursday and today the buy the dip trades that didn’t work on Friday and Monday are back on.
