Hello traders everywhere. Stocks are falling sharply Tuesday experiencing their biggest losses since October after President Trump suggested he may want to delay a trade deal with China until after the 2020 presidential election.
The DOW sank more than 400 points, triggering a new red weekly Trade Triangle indicating a move to the sidelines is in order. The S&P 500 slid 1.2% losing over 37 points, also triggering a new red weekly Trade Triangle. The Nasdaq fell 1.3% but has yet to issue a sell signal, which will come at 8,425.49.
Some stocks of companies with higher-than-average overseas sales exposure underperformed the broader market: Caterpillar slid -2.5%, Intel dropped -2%, and Apple lost -2.7%.
"In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now, and we will see whether or not the deal is going to be right," Trump told reporters earlier on Tuesday. When asked if he had a deal deadline, he added: "I have no deadline, no ... In some ways, I think it is better to wait until after the election if you want to know the truth."
On the flip side of this volatility in stocks, gold has woken up again, issuing a new green weekly Trade Triangle after posting a morning gain over +1% signaling a flight to safety by some traders.
Tuesday's losses would add to a steep decline from Monday's trading session marking two days of losses for the market. The S&P 500 dropped -.9%, its worst one-day performance since Oct. 8, while the Dow lost nearly 270 points. The Nasdaq closed down -1% on Monday. Monday's pullback was sparked by disappointing manufacturing data as well as renewed trade uncertainty between the U.S. and two South American partners.
Key Levels To Watch This Week:
- S&P 500 (CME:SP500): 3,065.89
- Dow (INDEX:DJI): 27,402.06
- NASDAQ (NASDAQ:COMP): 8,379.33
- U.S. Dollar (ICE:DX): 98.39
- Gold (NYMEX:GC.G20): 1,482.70
- Crude Oil (NYMEX:CL.F20): 56.75
- Bitcoin (BITCOIN:BITSTAMPUSD): 9,586.50
Every Success,
Jeremy Lutz
INO.com and MarketClub.com
I have grave doubts about this "news move the markets" theory. My observation is that one or two major financial news providers will ascribe a market move to a certain news item, and this is then parroted across the media landscape - but that doesn't make it any more true. In reality, markets will go up on any "news" in a bull market and go down in a bear market no matter what the news are.
Consider that the financial media at times use the very same news item to "explain" both up and down moves in stocks. A few years ago a Bloomberg headline read "Dow rallies on higher oil prices" - the very next day, the Bloomberg headline read "Dow falls due to rising oil prices". So which is it? I would suggest that the stock market is not moved by news at all - they are merely coincident. The urge to "explain" day-to-day market moves is rooted in the need to rationalize them - the belief that what is happening is largely rational, the result of calm deliberation on the part of investors. In reality, most buy/sell decisions are not rational at all - they are driven by emotions.
Trump has little to do with the day to day swings of the stock market.
Trump is in only for himself,he wants to be the wealthiest man in the world,I buy when he makes stock go down and sell when it goes up,i'm doing ok, at least I can pay for the food
This where his family and friends buy back in after cashing shorts, then wait a few days for tr*mp to reverse himself and spike things. This is a fairly constant game of market manipulation.
200 point bounce today for the Dow. Like a yo-yo.