MARKET NOTES

Outcome is what matters to us. Some are blaming Trump tariffs for today. Others are blaming the Italy situation. Neither explain what we are seeing in the financials. Coming into the week, one of our peeves was the lagging financials and now they are downright breaking down. Don’t take our word for it. Check out:

Biggies like JPM, C, BAC, BK, GS, WFC, MS. Look at XLF.

AXP, COF, DFS.

REGIONALS like PNC, CMA, RF, KEY, USB.

How about Europe…BCS, DB, CS, LYG

INSURERS…CB, BRKB, PRU, MET

Head on over to other markets…EEM, EFA,FXI, RSX, EWZ, VEA, EWJ

Get the hint. The good news is a slew of leading growth names acted great again today even with the DOW down 400. The good news is that small caps hardly budged. Jut know if financials and these other areas continue the ugly, the narrowing market will get more narrow. That XLF and the underlying names should be front and center. They usually, eventually matter.