US Stock Market Stages Key Reversal, Treasury Yields Stabilize

US Stock Market Stages Key Reversal, Treasury Yields Stabilize

$DIA, $SPY, $QQQ, $RUTX, $VXX

President Trump said Wednesday the Fed must cut rates “bigger and faster” for the United States to be competitive against other countries.

Our problem is a Federal Reserve that is too proud to admit their mistake of acting too fast and tightening too much (and that I was right!). They must Cut Rates bigger and faster, and stop their ridiculous quantitative tightening NOW,”

US stocks reversed and turned higher Wednesday afternoon as investors shook off early jitters that had driven the DJIA down 589 pts.

Technology and consumer staples stocks powered much of the gains, offsetting losses in banks, energy and others.

Fresh fears that the escalating trade war between the US and China may derail global economic growth gripped the market early Wednesday.

Investors reacted as they have in recent days: selling stocks and shifting money into bonds, gold and other safe-haven holdings.

Bond yields sank around the world, something that happens when investors see a weaker economy and low inflation on the way.

Gold prices jumped to the highest price in more than six years.

Hedge-fund billionaire Ray Dalio advised savvy investors to bet on “both horses in the race” amid rising trade tensions between the US and China.

He argued that investors still have a historic opportunity to buy into China as it opens up its markets to foreign investments.

Would you have not wanted to invest with the Dutch in the Dutch empire? Would you have not wanted to invest in the industrial revolution and the British empire? Would you not want to invest in the United States and the United States empire? I think it’s comparable,” said the founder of the world’s largest hedge fund, Bridgewater Associates.

Wednesday, the major US stock market indexes finished at: DJIA -22.45 at 26007.07, NAS Comp +29.56 at 7862.84, S&P 500 +2.21 at 2883.98

US Dec gold futures closed at: Gold: +2.2% to $1516.10 oz

Spot gold finished at: $1,489.76 oz

Volume: Trade on the NYSE came in at 1-B/shares exchanged

  • NAS Comp +18.5% YTD
  • S&P 500 +15.0% YTD
  • DJIA +11.5% YTD
  • Russell 2000 +11.3% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral with a Very Bullish bias.

Stay tuned

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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