Market Report for Aug 20 2020
Once you start breaking your rules, you can end up on a downward spiral, especially if you were lucky enough to have made a profit with the rule break.
Nasdaq Composite +24.2% YTD
S&P 500 +4.5% YTD
Dow Jones Industrial Average -3.0% YTD
Russell 2000 -5.8% YTD
NYSE Vol: 766 mln
Nasdaq Vol: 3.4 bln
The Fed put a dampener on the market yesterday with its monthly minutes meeting and giving traders a good excuse for profit-taking. The selling initiated 5 minutes after the FOMC minutes were released. The major averages and sectors all ended the session in the red.
On the bright side, AAPL crossed another milestone by being the first company to have a market cap of $2 trillion. This will raise the levels for other big tech companies to follow in the same footsteps. It’s like when the 4-minute mile was broken by Roger Bannister, it raised the bar and others then had a new target to push for. It was beaten 2 months later at the British Empire and Commonwealth Games in Vancouver and since then the new benchmark has lowered by another 14 seconds.
Running on to metals, Gold and Silver had a down day too. This was likely going to happen as referenced in the weekly webinars but needed a catalyst for the final portions of profit-taking. As mentioned in yesterdays post, it would be nice to see Gold move down to that 50ma zone for new entries. Our Gold position exited just above our entry point.
It is another stand aside day. As before, enjoy the days watching from the sidelines.
Lets go trade!