anyone know what causes wax/sealant to do this

Try removing your wax and sealants with a MF that is lightly misted with detail spray. This will greatly reduce the powder residue that most products have.

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Some sealers are problematic. They cause streaks and spots if the weather is hot or if the car is still dirty. Try spraying a little QD on the pad.
 
i wash the towels like regular laundry, in the past i have used dryer sheets, but stopped using them recently thanks to tips here at DC. the most recent time the spotting happened was after i stopped using dryer sheets. i do wash the rags, towels, applicators, etc. all together in the same load. when i polish, i think its shaken. the cars looks clean and shiny after i finish polishing. the spots dont occur until after i wax. thanks for all of the suggestions, i will give them a try and see if the problem stops
 
all i can say is maybe your products arent compatible. when i put a glaze under a sealant it looks horrible , cloudy, streaky,dull .. try some new products and towels and report back with results .:dunno
 
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