D&D Note (8.4.2020) ~ Stocks Drift Sideways As Congress Negotiates Relief Bill And Gold Closes Above $2000 ~
Stocks traded roughly flat on the day as Congress continues to drag negotiations along on the next Relief Bill.
Mitch McConnell has taken the back seat and has said he is “prepared to support” whatever agreement is made between the White House and the Democrats.
House Speaker Nancy Pelosi says a deal is unlikely to be struck this week.
We did see a late afternoon rally based on nothing in the last hour to lift indices firmly into the green and the S&P 500 closed above 3300.
Overall it looks like investors are chasing stocks at these elevated levels which is not the best investment strategy. The pain trade remains to the upside but markets are ripe for a pullback.
Gold smashes through $2,000 an ounce for the first time ever.
Disney gained 5.56% after reporting earnings and passing 100 million paid streaming subscribers of which half of those are for Disney+.
DOW up 0.62%
S&P 500 up 0.36% (3306.51)
NASDAQ up 0.35%
VIX down -2.14% to 23.76
Oil up 1.39% to $41.58 a barrel.
Gold up 2.48% to $2035.60 an ounce.
California found a glitch in its electronic laboratory reporting system that has been under counting the single-day increases in positive Coronavirus cases. It is unclear yet how many days the glitch has been affecting the under reporting.
Global Virus cases: 18.38 million+
Global Virus deaths: 696,389+
U.S. Virus cases: 4.75 million+
U.S. Virus deaths: 156,301+
~ Dave James / Principal Trader and Market Strategist