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Dear Trading God Friend, Â
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Financials lead broad equities rally on Friday; VIX falls.
The Dow and broader U.S. stock market rallied on Friday, ending a rocky week on a high note despite elevated virus risks.
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All of Wall Street's major indices finished in positive territory, with the Dow Jones Industrial Average (DIA) climbing 368.66 points, or 1.4%, to 26,074.75.
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The broad S&P 500 Index (SPY) of large-cap stocks gained 1% to close at 3,184.92. Nine of 11 primary sectors contributed to the rally, with financials stocks rising more than 3%. Energy, communication services and utilities also outperformed the market.
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Meanwhile, the technology-focused Nasdaq Composite Index (QQ) reached a new all-time high, climbing 0.7% to 10,617.44.
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The CBOE Volatility Index (VXX), commonly known as the VIX, declined sharply on Friday. The so-called "fear index" reached a bottom of 27.26 on a scale of 1-100 where 20 represents the historical average. VIX would eventually settle down 6.4% at 27.39.
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In economic data, producer prices declined 0.2% in June, which translated into an annual drop of 0.8%, the Labor Department reported Friday. The core producer price index fell 0.3% on month but was still up 0.1% annually, official data showed.
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On the commodities front, oil prices staged a rally on Friday, with U.S. crude futures back above $40 a barrel.
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U.S. West Texas Intermediate (WTI) for August settlement rose 91 cents, or 2.3%, to $40.53 a barrel on the New York Mercantile Exchange. Brent crude, the international futures benchmark, climbed 86 cents, or 2%, to $43.21 a barrel.
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The Final Word: The coronavirus pandemic continues to set new records in the United States. For the second straight day, the U.S. recorded more than 60,000 cases.Â
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We'll talk soon, Â
Dan
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Dan The Trading God
You Could Make $300 to $1100 Per Contract With This Simple Trade
Imagine getting really good at mastering just ONE simple trade. A trade that appears like clockwork between 9:30-10:45am on most trading days. This free step-by-step guide, by options expert, Dave Acquino, shows you how to spot and take these trades so you can walk away with daily profits!
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