You probably don’t need a bunch of charts to tell you just how sketchy the stock market’s behavior has been of late, but we’ll give them to you anyway.
We won’t even include the obvious one: The Dow Jones Industrial Average
took it on the chin during that nasty October stretch and hasn’t been getting much love from November, either. Stocks are staging a comeback Thursday, with the blue chip index up nearly 200 points, and the S&P 500
and Nasdaq Composite
also solidly in the green at this point. But there is still plenty of ugly out there to keep things in perspective.
Let’s dive into some specific alarm bells.
Apple on the precipice
Take the granddaddy of all tech stocks. Shares of Apple
have plunged over 10% in the past three months. Though the stock is rebounding today, the selloff has knocked Apple’s market capitalization below $900 billion for the first time in about six months, and, as you can see from the chart below from Wednesday, shares have been dancing around bear market levels — a decline of 20% or more from bull-market highs — for the first time since August 2016.
Still, Apple shares are up about 11% year-to-date, and if the stock manages to pull out a close in the green today, it could signal that plenty of traders are taking the advice to buy the dip.
Deathcrosses, big and small
Apple isn’t the only FAANG stock whose chart was blaring out warning signs this week.
saw its short-term 50-day moving average fall beneath its long-term 200-day moving average on Thursday for the first time in two years. This formation is known as the dreaded “DEATH CROSS!”
As MarketWatch’s Tomi Kilgore explains, some chart watchers believe the cross marks the spot a shorter-term slump morphs into a longer-term downtrend.
Google isn’t the first of the Big Techs to produce a deathcross (Facebook
stock did so on Sept. 20), and it won’t be the last. Netflix
is on its way there, perhaps as soon as Monday, and it’s looking like Amazon
could follow at some point in December.
Moving from the massive to the small, the small-cap Russell 2000
produced a deathcross in its chart on Wednesday.
PG&E loses over half its value
Elsewhere, the financial impact of the California fires can clearly be seen in what’s happening in this PG&E Corp.
chart. The utility has said its insurance may not cover the possible losses from what’s called the Camp Fire, now the worst wildfire in California history.
Shares have lost 48% this week, and nearly 60% since Nov. 8, the date that PG&E reported to the California Public Utilities Commission of the failure of some of its equipment in the area of Butte County near the city of Paradise where the fire is understood to have started.
has been in a downward trend for much of the year, but yesterday it went into a seeming freefall. The price of the No. 1 digital currency is now well below $6,000, its lowest level in over a year.
Over the past 24 hours the total value of all cryptocurrencies has lost more than $30 billion to a one-year low of $181 billion, according to data from CoinMarketCap.
— Barry Silbert (@barrysilbert) November 14, 2018
Pound gets pummeled
The British pound
tanked Thursday amid a new flurry of Brexit-related officials resigning their posts.
— jeroen blokland (@jsblokland) November 15, 2018
And this action might just be the tip of the iceberg in the event that British parliament can’t pass a plan to manage the transition period around exiting the EU, an outcome labeled a “no-deal Brexit.”
Then there’s oil
has also endured some violent selling, having broken into bear-market territory in less than six weeks. Bloomberg’s Tracy Alloway captured the action in the crude pits with this tweet of the CBOE oil volatility index
The spike in the oil VIX is also really something right now. pic.twitter.com/M2Cf5SLMSi
— Tracy Alloway (@tracyalloway) November 14, 2018
Providing critical information for the U.S. trading day. Subscribe to MarketWatch’s free Need to Know newsletter. Sign up here.