D&D Note (8.11.2020) ~ Stocks Sell-Off Late Day With Stimulus Impasse And Gold Falls Most in 7 Years ~ #StockMarket

D&D Note (8.11.2020) ~ Stocks Sell-Off Late Day With Stimulus Impasse And Gold Falls Most in 7 Years ~

Markets continued to see mixed trading as the rotation into cyclical stocks out of tech stocks continued for a second day.

The NASDAQ sees its 3rd straight day of losses which hasn’t happened since March.

The DOW and S&P 500 gapped up to open and brought the S&P 500 within 6 points of its all time high before pairing gains in the afternoon session.

In the final hour of trading the markets took an elevator leg down as Apple and tech drug the entire market down. It appears headlines on the stalemate in Congress over the relief bill is what sent stocks lower. If a deal is not struck essentially within days there might not be a deal until September.

Gold collapsed from its extremely overbought heights falling the most in 7 years down over 5% on the day. The move comes as the real rates in the U.S. ticked slightly up to less negative.

Silver fell over 14% on the day.

Financial stocks were the one sector that saw strong performance today lifting JPM up over 3%.

Joe Biden has selected Senator Kamala Harris as his VP pick.

Uber and Lyft are facing the issue of making their gig workers full-time employees. This is a very difficult task to actually undertake and could cause the ride apps to simply turn off their apps temporarily in California until the move is completed.

Tesla announces a five-for-one stock split and the stock rose as much as 8% in after-hours. This goes into effect August 31st. Keep in mind stock splits do nothing to create actual value.

DOW down -0.38%

S&P 500 down -0.80% (3333.69)

NASDAQ down -1.69%

VIX up 8.59% to 24.03

Oil down -1.00% to $41.52 a barrel.

Gold down -5.49% to $1915.99 an ounce.

Florida sees record single-day deaths from Covid-19 with 276 new deaths in one day bringing the total to 8,553.

Big Ten officially postpones the fall football season.

Pac-12 postpones all sport competitions through 2020.

Russia approves vaccine despite not even going through phase 3 trials which makes most concerned about the actual effectiveness and safety of the vaccine.

Global Virus cases: 20.17 million+

Global Virus deaths: 738,655+

U.S. Virus cases: 5.13 million+

U.S. Virus deaths: 164,593+

~ Dave James / Principal Trader and Market Strategist