Gold Reaches New Record High as Bitcoin Struggles; NVDA Earnings Awaited

Consumer Sentiment and Market Conditions

Today saw a slight increase in consumer sentiment according to the Conf Board headline. However, a closer look reveals a worrying situation with labor market weakness on the rise and purchasing plans taking a hit. Regional Federal surveys also painted a grim picture as home prices reached new record highs. This unfavorable news led to a dovish shift in rate-cut expectations, with the focus now shifting to 2024 from 2025.

Impact on Gold and Treasury Yields

The slight easing resulted in gold reaching a new record high. Meanwhile, treasury yields had a mixed day with the short-end outperforming, which led to a lower 2Y yield for the week. It's worth noting that bonds were in demand from early in the US session following a challenging EU session.

Nasdaq and NVDA

Nasdaq outperformed on the day, despite all the major indices starting weak. Small Caps were the biggest losers, while The Dow remained unchanged. NVDA stood out among the Mag7 today as a notable outperformer. Interestingly, 0-DTE traders aggressively moved into calls today, although they were more conservative with buying straddles later on.

Performance of Dem-Policy-Driven Stocks

Over the past couple of weeks, stocks driven by Democratic policies have outperformed. However, a look at the lower pane shows that we are currently at a key relative strength level for Democrats/Republicans.

The Dollar and Alternative Currencies

The dollar remained unchanged for the day, unable to recover any further from the post-Jackson Hole losses. As gold rallied, Bitcoin, the other alternative currency, fell back to pre-Jackson Hole levels.

Oil Prices and NVDA Earnings

Oil prices dropped today, seemingly hitting a wall at recent resistance levels. Looking ahead, all eyes are on NVDA's earnings tomorrow. The S&P 500 vol market appears to be ready.

Bottom Line

It's clear that the market is in a state of flux, with gold reaching new highs, Bitcoin struggling, and NVDA's earnings on the horizon. But as always, it's different this time. What are your thoughts on these developments? Share your opinions with your friends and join the conversation. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.