Hello traders everywhere. Stocks are falling sharply Tuesday experiencing their biggest losses since October after President Trump suggested he may want to delay a trade deal with China until after the 2020 presidential election.
The DOW sank more than 400 points, triggering a new red weekly Trade Triangle indicating a move to the sidelines is in order. The S&P 500 slid 1.2% losing over 37 points, also triggering a new red weekly Trade Triangle. The Nasdaq fell 1.3% but has yet to issue a sell signal, which will come at 8,425.49.
Some stocks of companies with higher-than-average overseas sales exposure underperformed the broader market: Caterpillar slid -2.5%, Intel dropped -2%, and Apple lost -2.7%.
“In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now, and we will see whether or not the deal is going to be right,” Trump told reporters earlier on Tuesday. When asked if he had a deal deadline, he added: “I have no deadline, no … In some ways, I think it is better to wait until after the election if you want to know the truth.”
On the flip side of this volatility in stocks, gold has woken up again, issuing a new green weekly Trade Triangle after posting a morning gain over +1% signaling a flight to safety by some traders.
Tuesday’s losses would add to a steep decline from Monday’s trading session marking two days of losses for the market. The S&P 500 dropped -.9%, its worst one-day performance since Oct. 8, while the Dow lost nearly 270 points. The Nasdaq closed down -1% on Monday. Monday’s pullback was sparked by disappointing manufacturing data as well as renewed trade uncertainty between the U.S. and two South American partners.
Key Levels To Watch This Week:
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