Bitcoin surges over $16k

GURU WISDOM

“The trend is your friend” – Martin Zwieg
 

MARKETS

US stocks moved lower on Thursday as traders appeared to take profits in many of the ‘value’ stocks that have done well this week. The Dow Industrials underperformed while the Nasdaq outperformed in a down tape. All sectors in the S&P 500 index were lower, led by Energy, Healthcare was the best performing sector. The VIX volatility index popped rising back up to the 26-handle. Oil prices moved lower, following a larger than expected build in oil inventories. 

President Trump’s campaign is in the process of pursuing legal attacks on different states in an effort to block officials from certifying the results. It also appears that President Trump is beginning to discuss trying to develop his own media network using all of his contacts from Make America Great Again (MAGA). 

Covid cases continue to rise across the US and the globe and this is beginning to put downward pressure on stock prices. However, it did little to dampen appetite for Bitcoin, which is acting as investors preferred asset during risk-on and risk-off days, with the latest catalyst being an endorsement from billionaire hedge fund manager Stan Drukenmiller. 
 

CPI is Unchanged 

The US Consumer Price Index was unchanged in October, reflecting one of the tamest periods in 2020 for inflation. This follows a 0.2% advance in September. On a year-over-year basis, CPI rose 1.2%. Expectations had been for headline CPI to rise by 0.1% month over. Declining gasoline and medicare costs weighed on inflation. 
 

Jobless Claims Continue to Fall

US Jobless claims continued to decline slipping to 709,000 for the week ended November 7, down from 757,000 the week before according to the US Labor Department. Expectations had been for new claims to come in at 740,000. This marked the fourth consecutive week of declining jobless claims.