Stocks Still On Pace For Weekly Losses

Hello traders everywhere. Despite the fact that all three major indexes are up over +1% in Friday trading they will still all lose close to or more than -1% on the week, unable to shake the heavy losses suffered mid-week. The NASDAQ is down -.8%, meanwhile the S&P 500 will lose -1% and the DOW will post we weekly loss of -1.6%.

Falling bond yields are to blame for the volatile markets this week with The U.S. 30-year Treasury yield dropping to a record low Thursday, while the yield on the benchmark 10-year notes dipped to a three-year low as investors sought out safe-haven assets.

Amid all of the volatility, the U.S. Dollar shook off a weekly loss of -1% last week to post a weekly gain of +1.1% gaining strength against global currencies. However, it's still stuck in a tight trading range between $96-$98.

Gold has been the big benefactor of the recent volatility gaining +1% on the week marking three straight weeks of gains against the major indexes posting three straight weeks of losses. That paints a pretty clear picture of a flight to safety by investors. Check out INO Contributor Aibek Burabayev's recent article on gold and where it's headed.

Crude oil is set to post a weekly gain of +.8% after posting four straight weeks of losses, but overall the long-term trend is down for oil and we should expect to see the price oil head lower as we close out the year.

After two weeks of gains, Bitcoin has given back some of this gains losing -7.5% on the week. It's currently stuck in a tight trading range between $9k and $12K, essentially in a sidelines mode.

Key Levels To Watch Next Week:

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Stocks Tumble On Recession Warning

Hello traders everywhere. Stocks fell sharply on Wednesday giving back all of Tuesday's gains after the U.S. bond market flashed a troubling signal about the U.S. economy. This move ignited fears that a recession may be on the horizon for the U.S. economy.

The DOW was down more than 600 points and is down over -2.3%, meanwhile the S&P 500 slumped -2.3% and the Nasdaq sank -2.5% on the day.

The yield on the benchmark 10-year Treasury note Wednesday broke below the 2-year rate, an odd bond market phenomenon that has been a reliable indicator for economic recessions. Investors, worried about the state of the economy, rushed to long-term safe-haven assets, pushing the yield on the benchmark 30-year Treasury bond to a new record low on Wednesday.

There have been five inversions of the 2-year and 10-year yields since 1978, and all were precursors to a recession, but there is a significant lag, according to data from Credit Suisse. A recession occurred, on average, 22 months after the inversion, Credit Suisse shows. And the S&P 500 enjoyed average returns of 15% 18 months after an inversion before it eventually turns.

The last time this key part of the yield curve inverted was in December 2005, two years before the recession hit.

Key Levels To Watch This Week:

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Stocks Fall On Amplified Trade Fears

Hello traders everywhere. Stocks fell Friday after President Trump suggested that a meeting with China on trade might be canceled, capping a tumultuous week driven by the trade war and emerging currency fight between the U.S. and China.

"We're not ready to make a deal, but we'll see what happens," President Trump told reporters Friday morning. "We will see whether or not China keeps our meeting in September."

The DOW slid -0.9% in midday trading on Friday losing over 200 pts. The S&P 500 dropped -1.1%, while the tech-heavy NASDAQ was down -1.4%. The indexes had been down to open the day and fell further as the president commented on trade progress.

For a weekly view the S&P 500 is down roughly -.9 for the week unable to erase the losses of the week, in fact, the DOW will lose -1.2% and the NASDAQ will lose -1% making for a tough week.

Gold and Bitcoin had great weeks posting weekly gains of +4% and +8% while crude oils struggle continued losing -1.4% on the week.

Key Levels To Watch Next Week:

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Trade Tensions Sink Stocks

Hello traders everywhere. China's answer to the latest round of tariffs that President Trump announced last week was to let the Yuan, China's currency, slide below the key 7-per-dollar level for the first time in more than a decade fanning fears that it could further aggravate an ongoing trade war.

The Dow plunged more than 600 points a few different times today losing over -2%, while the S&P 500 sank over -2% and the Nasdaq dropped -3%. The three indexes are on pace to post their biggest-one day loss since May 13. The Nasdaq is on track to fall for a sixth straight session, which would be its longest losing streak since late 2016. The S&P 500 headed for a six-day losing streak as well. The major indexes have also fallen more than 5% from their record highs set last month.

Bitcoin has mounted a comeback that started last week and culminated with a new green weekly Trade Triangle being issued at $11,370.78 signaling a move back to a long position. Bitcoin is currently up +5% backing up its +14% move last week. Is Bitcoin the new haven for China?

Key Levels To Watch Next Week:

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Stocks Fall After Tariffs and Fed Cut

Hello traders everywhere. All three major indexes will end the week in negative territory after suffering a one-two punch from the Fed and President Trump. The move lower started on Wednesday when the Fed announced that they were cutting the key interest rate a quarter-point in effort to keep economy on track. That news caused all three major indexed to finish -1% lower on the day with the S&P 500 triggering a new red weekly Trade Triangle at the end of trading that day indicating a move to a sidelines position.

Thursday morning saw a bit of optimism with stocks climbing higher in early trading only to be chopped down when President Trump tweeted "Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%". That news sent the DOW lower losing -1% or 280pts on the day triggering a new red weekly Trade Triangle as it joined the S&P 500 on the sidelines.

The stock market continues to move lower as we end the trading week lower culminating with the NASDAQ joining the S&P 500 and DOW triggering new red weekly Trade Triangle after losing -1.39% as we head into afternoon trading. As we stand stocks are on pace to have their worst week of the year with the S&P 500 and DOW losing over -3% and the NASDAQ losing over -4%.

Key Levels To Watch Next Week:

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