[Chart courtesy of MarketWatch.com]
- Moving the Markets
It was another roller coaster session with the major indexes ramping higher right out of the gate, only to see early gains evaporate, as Dow ended a string of daily losses at four, but only by the tiniest of margins. So did the S&P 500, but the Nasdaq stumbled and closed the day in the red. Emerging markets reigned superior with SCHE adding a solid +1.13% in an otherwise momentum-less trading session.
However, some momentum was present in the precious metals markets but, unfortunately, it was the downside. Gold flash-crashed this morning plunging $18, or 1.6%, to $1,236 on massive volume, as someone dumped $2 billion (over 18,000 contracts) in a matter of seconds. Naturally, silver was dragged down with it in what was an obvious attempt to manipulate prices. After all, if you wanted to sell at the highest price you would do it carefully and deliberately and not all at once.
Economic data points continued their nose dive with Durable Goods and the Chicago Fed’s National Activity Index both tumbling and missing expectations by a huge margin. As a result, the Citi Macro Surprise Index slumped to its lowest level since the middle of 2011.
Treasury yields fell with the 10-year bond now yielding 2.14%, which is its lowest since November 2016. The US dollar had its own roller-coaster ride, first sharply dropping on the weak economic data points and then rallying to manage a gain of +0.06%, as measured by UUP.