It was a wild ride today!
Stocks opened lower and immediately dropped.
But after a sharp slide, the major indices reversed course about 20 minutes into trading. This was right around the same time that the Chinese yuan found support.
The yuan has been closely watched this week, ever since it dropped to near historic lows and President Trump labeled China a “currency manipulator.”
Traders are concerned when the yuan drops significantly against the U.S. dollar. The move makes Chinese exports more attractive to countries, which is a battle in Trump’s trade war that the President can’t win without the Fed since the Federal Reserve is in charge of monetary policy, not the government.
A sharp drop in the 10-year yield was another reason stocks opened lower.
New Zealand, India and Thailand all cut rates, which prompted a move to “safe haven” assets like U.S. treasuries and gold.
After the reveral stocks rallied and the S&P and NASDAQ made an impressive rebound to end the day positive.
The DOW ended with a loss. But considering the index was down almost 600 points this morning, a 22 point loss looks pretty good.
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Here’s where the major indices ended the day:
- The S&P finished with a 0.1% gain. Up 2 points, the S&P ended at 2,884.
- The DOW ended lower by 0.1%. Down 22 points, the DOW closed at 26,007.
- The NASDAQ was up 0.4%. With a 30 point gain, the NASDAQ finished at 7,863.
Crude Oil (CL) finished lower for the 3rd day in a row. With a 4.6% loss, CL ended at $51.14 a barrel.
Gold (GC) jumped today, in a move that could be considered a “flight to safety” by investors. The shiny metal was higher by higher by 2.4%, trading above $1,500 for the first time since 2013.
However, the flight to safety and lower 10-year yield sent bank stocks lower today.
JP Morgan Chase (JPM) lost 2.2% and Bank of America (BAC) was down 1.9%.
On a positive note, CVS (CVS) finished higher by 5.2% after reporting better than expected earnings.
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Source: RockwellTrading by Markus Heitkoetter | Original Link