Friends
Well, that was ugly. Stocks cascaded downward throughout the day as traders continue to fret about inverted yield curves, trade deals (or lack thereof), and a slowing economy. You know the drill, as big moves happen, technical levels are violated and algorithms kick in. More and more, 2018 is trading a lot like 2011, where we had more than 20 days of bigger than 2% moves. We are double digits now for moves of 2% or more for 2018, with today’s 3% move being the third of its type.
By the close, the Dow Jones Industrial Average was down 799 points to finish the day at 25,027. The S&P 500 was down 90 points to close at 2700. Gold was up $4 to trade at $1,244 per ounce, while oil was down $.14 to trade at $52.81 per barrel WTI.
After the mess that we experienced in October, November was a pleasant reprise. But after the “confusing” trade “deal” over the weekend, euphoria has quickly been replaced by doubt. Maybe part of today’s downturn is due to the markets being closed tomorrow for President Bush’s funeral. Whatever the case, much of the good work the bulls did over the last several weeks was erased in one ugly trading session today. We’ll be in the office tomorrow despite that fact that the markets are closed. We’ll send the next email on Thursday.
Have a nice evening everyone.
