Hello traders everywhere. The stock market gave back early Friday morning gains after the second U.S. case of the deadly coronavirus was confirmed. The Centers for Disease Control and Prevention (CDC) said a Chicago resident who traveled to Wuhan, the Chinese city where the coronavirus originated, in December was diagnosed with the sickness. So far, the outbreak in China killed 26 people and infected more than 900 in the past week, raising concerns about its fallout on the global economy.
That report pushed the DOW was down over -175 points, the S&P 500 slid -08% and the NASDAQ fell -.75% on the day. Overall for the week, the DOW is on pace to lose -.8%, it's the first weekly loss in two weeks. The S&P 500 will also post its first loss in two weeks, with a loss of -.5%. However, the bigger shock to the system is that the NASDAQ will post a weekly loss of -.1% its first weekly loss in over six weeks.
Crude oil continues to under heavy pressure from rising inventories and weakening demand. Crude will post it's third straight week of losses with a loss of -7.9% trading below $54 a barrel. The EIA itself earlier this week said it expected crude oil production in the shale patch to continue increasing, adding 22,000 bpd next month to reach a total of 9.2 million bpd. The increase will come from the Permian and the Bakken, which will together add 50,000 bpd to their daily average, more than offsetting declines across the rest of the shale patch.
You would think that news of a coronavirus outbreak would be just the event that gold bugs love, but gold will end the week up +.9% a somewhat muted move. However, sentiment in the marketplace is still significantly bullish among both Main Street investors and Wall Street analysts. Look for gold to make a move higher is the coronavirus outbreak continues to strengthen.
The U.S. Dollar finally broke above $97.65, triggering a new green weekly Trade Triangle, indicating that it is now in a sidelines mode. The dollar will post a modest gain of .+3%, but that marks it's third straight week of gains.
Bitcoin will suffer a weekly loss of -7.5% marking it's first weekly loss in over five weeks as the bullish momentum stalled-out right at the 200-day moving average. That is now the level of resistance, which stands at $9,046.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 3,214.64
- Dow (INDEX:DJI): 29,009.07
- NASDAQ (NASDAQ:COMP): 8,943.50
- U.S. Dollar (ICE:DX): 96.54
- Gold (NYMEX:GC.G20): 1,554.40
- Crude Oil (NYMEX:CL.G20): 56.27
- Bitcoin (BITCOIN:BITSTAMPUSD): 7,310.00