Oil. Yikes. 🥴

Tale of the Tape

Good evening and happy weekend everyone. If you’ve been involved with these markets, grab yourself a cocktail because you’ve earned it.

The S&P 500 fell 1.71% on the day but managed to gain .5% for the week. It is now down 8% on the year.

What a rollercoaster the last two weeks have been. Not just for stocks but for oil and commodities in general while bonds have been a rocket ship.

Oil got crushed today (see below) and is definitely a part of this apparent global asset unraveling. Treasury yields made all time lows yet again. All sectors closed lower.

Equity, debt, and commodity markets sure do act like the global economy is faltering, though at least occasionally things are not as they appear.

The Dow is down 9/10 Friday’s in 2020. Seems like Thursdays are a bad day to get long.

S&P 500	2,972	-1.71%
Nasdaq	8,575	-1.87%
Russell 2000	1,449	-2.00%
Dow Jones	25,864	-0.98%

Oil. Yikes. 🥴

Oil futures dropped 9% today which was the commodity’s worst day since November 2014. Oil is now down 34% from its peak prior to the Iran Missile Attack on January 8th, 2020.

Today’s unreliable news headlines read how OPEC failed to reach an agreement blah blah blah, but attribution follows price and there’s a lot of heavy macro sh*t going down about now.

Here’s the daily chart:

Check out the crude oil weekly chart. 42 has acted as support in the past, we are now trading at this level.

Golden Boy

Gold continues to move higher. It had its best week in 11 years. Here is a great visual from Bloomberg highlighting the 10-Year Yield and Spot gold. Investors are flocking to “Risk-Off” assets.

Here’s Investopedia breaking down “Risk-Off” assets:

Brain Shannon coronavirus vs $SPY

Brian Shannon aka alphatrends shared this chart looking at the $SPY and the number of social media interactions on stories of the coronavirus which was provided by Axios. You can see volatility picked up as interactions reached highs. Great catch Brian.