D&D Note (9.21.2020) ~ Markets Continue To Selloff Nearing Correction In S&P 500 While U.S. Covid-19 Deaths Approach 200,000 ~
Global markets sold off overnight putting pressure on U.S. markets today as both Fiscal Stimulus + Covid-19 worries rattles investors.
Cyclicals led the selloff today while Tech was the cleanest dirty shirt on the day.
Banks were under pressure on transaction schemes that show over a Trillion Dollars of questionable transactions that could be money laundering.
Healthcare sold off over SCOTUS uncertainty after RBG passed away leaving the Affordable Healthcare Act at risk. Coney Barrel looks to be the leading pick and might be nominated for a vote this Friday or Saturday.
The key level to watch on the S&P 500 is 3188 which would represent a 10% correction, if that doesn’t hold then we are looking at the 100 day moving average then 200 day moving average for support.
The worse S&P 500 sectors today were Energy, Materials, Industrials and only sector in the green being Tech.
DOW laggards were American Express, 3M, Dow Inc, Caterpillar, Honeywell and DOW leaders were Apple, Walmart, Microsoft, Salesforce.
NASDAQ 100 laggards were Illumina, United Airlines, American Airlines, Wynn Resorts, Marriot, Hasbro, Trip.com while the leaders today were Take-Two Interactive, PayPal, Netflix, AMD, eBay, Electronic Arts.
D&D took advantage of todays weakness in price action and bought:
JPM (added to our Holding Portfolio position)
BA (started position in our Holding Portfolio)
JNJ (started position in our Holding Portfolio)
UNH (started position in our Trading Portfolio)
Joe Biden’s capital gains hike is leading many to believe we could have a post election selloff if Biden wins as investors lock in profits at current lower capital gains rate.
Markets did come off their lows of the day into the close with some dip buyers entering into the market.
DOW down -1.84%
S&P 500 down -1.16% (3281.06)
NASDAQ down -0.13%
VIX up 7.55% to 27.78
Oil down -3.55% to $39.65 a barrel.
Gold down -1.95% to $1912.87 an ounce (the rise in the dollar today put pressure on commodities).
Coronavirus cases in Texas, California, and Florida continue to climb.
More restrictions are likely to come in Europe as countries like the UK continue seeing a rise in new cases.
Global Virus cases: 31.17 million+
Global Virus deaths: 962,076+
U.S. Virus cases: 6.82 million+
U.S. Virus deaths: 199,690+
~ Dave James / Principal Trader and Market Strategist