Marktrotatie, dollarstijgingen, bitcoin -valpartijen: marktafhakingen

00:00 Josh

US stocks closing lower in today's trade, retreating from a powerful rally fueled by rate cut hopes. Here with the training takeaways is Yahoo Finance's Jared Blikre. Jared?

00:11 Jared

Thank you, Josh. I think we're seeing more rotation in the market. We have low liquidity. It's the end of August, end of summer. And, uh, money's just kind of sloshing around sideways to sideways. Some days you see some winners, some days you see those same sectors and stocks as losers. And we can see this here today. These are the 11 S&P 500 sectors along with the S&P 500 itself. And you'll see a couple winners today, energy and communication services. By the way, communication services XLC record closing high today. Haven't seen many of those recently. But look at who was the biggest losers today. Staples, healthcare, and utilities. Now, these three sectors in particular were the winners last Monday and I believe Tuesday. And so I was talking about rotation last week, and I think that's more of what we're seeing today. Uh, it's just going up and then it's going down, and we're seeing a lot of that here. If we take a look at my leaders, we're also seeing that. Mag 7, one week ago, those, you couldn't touch those. Nobody wanted Mag 7. Then on Friday, things changed with Powell, and we'll get into more of Powell in a second, uh, because I do believe that's instrumental. But you take a look at what's happened with some of the other stuff that was leading last week, XHB, that's home builders. That was a leader to the downside today. And, uh, the list goes on. So I think it's just more rotation and that explains a lot of what we're seeing, which really just appears to be random a lot of the times.

02:25 Josh

Stocks down. What was up?

02:29 Jared

Dollar Dynamos. I'm looking at the US dollar index, the Dixie in particular, and let me get a chart of that on the screen. So, on Friday, Powell really shocked people. This is what happened in the dollar today. Let me give you a three-day look, so we can see last Friday. There's that big drop right there. What happened? Powell surprised everybody with a much more dovish statement about interest rates. Everybody now expects, uh, more cuts this year. September fully priced in. And so I think that caught people off guard. And so, arguably, this is just a little bit of a walk back today, even though that this is the greatest jump in the dollar we've seen in six weeks. It's coming off the biggest decline we've seen in the dollar since late April, so several months. And so maybe just a little bit of a snap back here.

03:36 Josh

Finance of crypto. We should do a check. Last night, I saw Bitcoin were around one ten, I think, Jared.

03:44 Jared

Yeah, so Bitcoin breaking lower here, and we'll get a chart of, uh, crypto, Bitcoin on the screen, and Ethereum, by the way. I've been tracking Ethereum closely, very close to record highs recently. It just barely backed off, but Bitcoin has seen a lot lower prices. So here we see Ethereum off 9%, Bitcoin off 2.72%, and these are over the last 24 hours. Let me put a five-day chart in there, and we can see it's just kind of steadily leaking lower over the weekend. And actually, I'm gonna put a year to date. This will give us a better view. And here we had that, what I was calling a false breakout to the upside. Why false? Because it lured traders in, then it just slammed the door shut. And all those new longs, especially the speculative ones, not the strong holders, the weak holders, they had to liquidate. And now we're seeing the lowest prices in what, six, seven weeks, something like that. So it's not the end of the rally that I'm calling here, but I did flag a week or two ago micro strategy, that huge premium that we saw, which was leading Bitcoin to the upside, that had reversed. And so that was a warning flag. I'm not too excited about, uh, I'm not too excited about things right now, given the recent price action. I would like to have seen more continuation off of the excitement we had Friday. But you put it all together, the US dollar index, uh, was up today, and when you have the dollar up, you tend to see crypto and also commodities, they go down.

05:47 Josh

Let's end on commodities. What are we seeing there?

05:50 Jared

Let's do that. Uh, futures. So when you see the dollar's strong, it's no, it's, you would think, okay, metals are gonna be weak. That's exactly what happened. Palladium down 3%, platinum down two, silver down one, and gold's in there somewhere. Gold down about a quarter of a percent. What's interesting is crude oil. Now, crude oil, it's not a perfect inverse relationship, uh, but it did kind of perk up here. We've seen crude play, uh, excuse me, trading sideways for the last few months. And I think it is notable that we just had the highest price in a few weeks, but I'm not gonna get excited about crude oil here. It's another market, uh, futures, you know, low liquidity into the, uh, September trading arena. I think that's what we're seeing here. Just low liquidity, low volumes overall.

06:46 Josh

There you go. Thank you, Jared. Appreciate.

06:49 Jared

Thank you.