Stocks Pounded Again; Transports Drop 206 Points

Following a brutal February and March, equity investors could hardly be pleased with the first day of trading in April and the start of the second quarter.

A weak opening was followed shortly by indecision and then a descent back into the abyss, with all the major averages into the red for the year. Of particular interest was the Dow Jones Transportation Index, which spent much of the afternoon testing new lows below the February 9 bottom of 10,136.61. Only a late-day push kept the transports from finishing under the level that would signal a primary trend change.

The Dow Industrial Average was likewise saved from further embarrassment as it gained into the close after being down more than 750 points earlier. The push higher nearing the end of the session should be largely attributed to nothing other than day-trading short-covering by quants and large hands taking massive profits at the expense of the bulls still looking for some upside.

With stocks under serious pressure for nearly two months, some relief is almost guaranteed, though the duration of any improvement is a question for market-timers, chartists and wide-eyed speculators. Recent activity appears to be more reminiscent of the end of a bull market and the beginning of something worse than what should accompany a surging economy. The narrative of US strength is failing on many fronts and likely will not last more than a few more months, or possibly, even a few days.

This is a market made for traders using other people's money, not their own.

Dow Jones Industrial Average April Scorecard:

Date	Close	Gain/Loss	Cum. G/L
4/2/18	23,644.19	-458.92	-458.92

At the Close, April 2, 2018:
Dow Jones Industrial Average: 23,644.19, -458.92 (-1.90%)
NASDAQ: 6,870.12, -193.33 (-2.74%)
S&P 500: 2,581.88, -58.99 (-2.23%)
NYSE Composite: 12,216.71, -235.35 (-1.89%)