I don’t call them ‘wicked’ for no reason

As markets came to a close on November 9th, 2020 (U.S. time), I wrote a post which highlighted a trading day not seen too often. The final paragraph summarises it well.

3 weeks later, let’s compare;

On that ‘wicked’ November 9th day,
The major U.S. indices rallied hard during the day, then gave up most or all of those gains. This is what I call a reversal and a potential bull trap.

The S&P 500 saw a high of 3,646. Today, it’s 3,638.
The Nasdaq 100 intra-day high was 12,268, the current price is 12,258.

No change in 3 weeks.
The trap is still in progress.

Silver & Gold tanked on Nov 9th.
Such large ‘down days’ tell us to stay on the sidelines for a little longer.
Silver’s low was $24.08, todays its 8% lower at $22.13.
Gold traded to a low of $1,850, now its 4.3% lower at $1,770.

Oil boomed 6% higher to an intra-day peak of $43.46 and has advanced a further 10% up to $48.00.

The U.S. KBW Bank Index which soared an incredible 13.5% eeked out an additional 3% in the next couple days.

10 year bond yields surged from 0.81% to 0.93%. They rose to 0.98% yet failed a weekly close above that. Now, they are 0.83%. My comments in the link were spot-on.

In summary, whoever reversed remained steady, those who tanked carried on falling and whoever soared, advanced a little more.

November 30, 2020
by Rob Zdravevski

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