In Today’s Video, I review gold’s recent surge, which appears to be losing momentum as technical indicators suggest a possible short-term top, coinciding with declining volatility and a strengthening U.S. dollar. Beneath the surface, weakness in high-yield bonds, private equity, and homebuilders points to growing market fragility despite headline indices remaining stable.
Daily Write-Up
Stocks are trading lower today, with the S&P 500 down around 45 basis points. The equal-weighted RSP index is performing worse, down roughly 75 basis points. The decline would likely be steeper if not for NVIDIA, which is up about 2.5% on the day.
What’s more interesting is that we’re seeing some weakness in HYG today, which is down about 25 basis points. It appears to have broken below an uptrend that had been forming, which could signal a potential shift in the market’s tone towards high-yield credit.
