Your Wednesday Market Blip 8/28/19

Your Wednesday Market Blip 8/28/19

Today was the opposite of yesterday. Markets began the day off triple digits, reversed and closed up 258 at 26,036 on heavier trading volume. IBD still has markets in “rally under pressure” and BTS is on the sidelines. Action is in bonds however which is a good signal of support for stocks.

Brexit is influencing German exports. Oxford Economics guru Oliver Rakau said the recent 1.3% decline in German exports for Q2 was due Brexit and Brexit alone because exports to the US and China were up while exports to the U.K. plunged. The reason for the drop was that British firms front loaded imports from Germany in Q1 to avoid any potential Brexit tariffs. The thinking is that German exporters, which are mostly car companies, will see a rebound possibly ahead of the Oct 31st hard Brexit date. Rakau noted that German exporters are struggling with both a slowing global economy and negative effects on the auto sector which is having trouble with stricter emission regs and managing a broader shift away from internal combustion engines to EV’s.

WTI crude oil prices moved up after stockpile reports showed a surprise drop sending supplies to the lowest level since October of last year. WTI crude finished the day up 1.8% at $55.90. Gold meanwhile held steady at $1,542 an ounce. Gold has made a strong run as of late and some content it is investors hedging bets and trying to offset negative interest rate bonds issued by Germany, Japan and a host of other European nations.