D&D Note (8.31.2020) ~ DOW And S&P 500 Close Out Best August Since 1984 & 1986 Despite Mixed Finish Today ~
Markets record the best August since 1984 for the DOW and since 1986 for the S&P 500. Historically a strong August is followed by a weak September. One of the main reasons being light volume in August from traders being away on holiday.
It was a mixed Monday with only the tech heavy NASDAQ gaining on the day (since the March lows Mondays have been the best day for stocks to rally). It is a bit worrisome we have broken that trend and the VIX continues to jump, gaining over 15% today.
The NYFANG index gains 20% in the month of August for best month ever.
The Dollar continues its fall for 5th month in a row.
Gold has its first monthly decline in the last 5 months.
Apple (up 3.39%) and Tesla (up 12.57%) had their stocks split today. Both stocks rally despite no actual value being created from the splits.
History of Apple stock splits shows that on average two weeks after the split the stock falls 5.6% and trades negatively after all four previous splits.
TikTok is said to have chosen a bidder and the deal to sell U.S. business to be announced possibly Tuesday. Microsoft + Walmart partnership and Oracle are the leaders to buy the company.
Amazon wins FAA approval for its Prime Air drone delivery fleet.
10 States plus Washington D.C. still haven’t yet received federal approval to offer an additional $300 weekly unemployment benefits.
The New York Times reports that the Department of Justice blocked investigation into Trump’s ties to Russia.
Both the DOW and S&P 500 drop in final minute from highs of the day to near the lows of the day in a drastic reversal.
DOW down -0.78%
S&P 500 down -0.22% (3500.31)
NASDAQ up 0.68%
VIX up 15.03% to 26.41
Oil down -0.40% to $42.80 a barrel.
Gold up 0.19% to $1968.59 an ounce.
A Covid-19 vaccine is not likely before election according to former FDA commissioner Dr. Scott Gottlieb.
The World Health Organization issues a warning that ‘no country can just pretend the pandemic is over.’
Global Virus cases: 25.32 million+
Global Virus deaths: 847,847+
U.S. Virus cases: 6.02 million+
U.S. Virus deaths: 183,355+
~ Dave James / Principal Trader and Market Strategist