A fun day for trading nerds

Monday’s action in global capital markets was one of those fascinating trading days which occur a handful of times in a given year.

Silver fell 7.6%,
Gold declined 4.5%,
Oil rose 6%,
The S&P 500 climbed 3.9% and then gave up gains to close up 1.2%,
The Nasdaq was up 1.5% at its highest point and then reversed (not good) to close DOWN 2.1%,
Pfizer had good news about a vaccine so it soared 15.4% but ending the day up 7.7%,
its peer, Merck advanced 6% (in sympathy) to only retreat and close unchanged,
the KBW Bank Index rose 13.5% (an amazing move for an index),
and a couple U.S. bank stocks held in client portfolios surged 18% (and I’m not happy ’cause it shouldn’t be doing this),
U.S. 10 year bond yields screamed 14% higher moving from 0.81% to 0.93%,
in the previous day trade (Friday), they had already increased 7% (from 0.76% to 0.81%)

while Spain’s unloved IBEX and the FTSE 100 respectively added 8.5% and 4.5% in a single day.

These indices have risen 15.6% and 11% since being mentioned in my recent newsletter.

So, it was a day of “reversals”, “gap-ups” and momentum chasing while it has been a few days where some unnatural owners and participants have set themselves up to be hurt and some became spooked.

November 10, 2020
by Rob Zdravevski
rob@karriasset.com.au