The NASDAQ put up a better fight, but still could not find adequate footing to stage any meaningful rally. Stocks are unrealistically valued as the business cycle - despite commentary and central bank intervention suggesting that it has been abolished - heads into the latter stages and nears overcapacity.
It is, after all, September, and there's plenty on the minds of individuals and investors, not the least of which being odious debt levels in corporate, government and individual accounts. With interest rates on the rise and winter approaching, concern may be more toward preservation of capital than appreciation of such. Risk is rising for obvious reasons and the global economy is groaning from severe stresses placed upon it by a rising dollar, which has become the go-to currency and the US the trading capitol of the world.
More than a few economists and analysts had predicted a second half slowdown, so, after gains in July and August, September may be the market's Waterloo, forcing the hands of even the most ardent bulls. This week also marks the ten-year anniversary of the fall of Lehman Brothers, as well as another reminder of the 9-11 tragedy of 2001, tomorrow.
Somber as the mood may be, American hearts and minds are forever looking ahead, so a slow week or even a down month is unlikely to unhinge the usual giddiness of the bulls. It's been nearly 10 years since the market retreated in a serious manner, but current conditions don't augur well for a sudden collapse. Rather, a bumpy road lower may be the preferred path as the signs of decay over the past week are beginning to make more of an impact.
The Dow can't seem to handle prosperity over 26,000. It has closed above that level a handful of times (three, to be exact) in the last week of August, but beat a hasty retreat once it was revealed to be overbought.
Monday's losers were an odd assortment of UnitedHealth Group (UNH) 259.73, -8.55 (-3.19%); Boeing 341.86, -7.42 (-2.12%); Traveler's 127.60, -2.49 (-1.91%); and, Apple (AAPL) 218.33, -2.97 (-1.34%). These are diverse businesses, the only possible connection being finance, though that's dubious, at best. Adding in Goldman Sachs (GS) 231.91, -2.00 (-0.86%), the other common thread is that Boeing is the most expensive stock on the index, UNH second, GS third, and Apple, fourth. The Travelers (TRV) is a distant 13th-most expensive, the selling in those shares possibly tied to potential losses from Hurricane Florence, which is taking dead aim at the coastal communities of the Carolinas and due to make landfall later this week (likely Thursday morning).
On a positive and somewhat perplexing note, the Dow Jones Transportation Index closed at a new record high, picking up 206 points to finish at 11,554.08. This is not ordinary trading, with the Dow down, the NASDAQ up, along with a record on the transports. Either traders are playing momentum-chasing games or something unseen is occurring out of sight from regular investors. The odd trading patterns that have persisted since the sudden February fallout are bizarre and without explanation. Adding in the commodity shakedown, markets are sending mixed signals which only those with fingers firmly on triggers can apparently comprehend.
On world indices, the Far East continued lower, Europe didn't decline, but gains were marginal, and South American markets returned to their downward trend with gusto.
With a slow start to the week, it's difficult to image a good result as the grind toward the September 25-26 FOMC commences.
Dow Jones Industrial Average September Scorecard:
| Date | Close | Gain/Loss | Cum. G/L |
| 9/4/18 | 25,952.48 | -12.34 | -12.34 |
| 9/5/18 | 25,974.99 | +22.51 | +10.17 |
| 9/6/18 | 25,995.87 | +20.88 | +31.05 |
| 9/7/18 | 25,916.54 | -79.33 | -48.28 |
| 9/10/18 | 25,857.07 | -59.47 | -107.75 |
At The Close, Monday, September 10, 2018:
Dow Jones Industrial Average: 25,857.07, -59.47 (-0.23%)
NASDAQ: 7,924.16, +21.62 (+0.27%)
S&P 500: 2,877.13, +5.45 (+0.19%)
NYSE Composite: 12,929.01, +17.89 (+0.14%)
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