U.S. stocks spent the entire session Tuesday in the red, but really caved late in the day as tensions mounted in the Middle East and the price of crude oil continued to ramp higher on global markets. The October WTI futures contract closed out the day at $94.23, a three percent jump and the highest price in three months. November Brent Crude futures closed out at $99.36 on the NYMEX.
The Dow took the worst of it on U.S. indices, losing just over 600 points and closing right at the 50-day moving average, which is no coincidence. On August 20, the Dow 30 lost just more than 700 points, and on September 1, the Dow dropped about 420 points, both times landing right on the 50-day. Each time, the 30 industrials rallied the following day, so hitting the target is some kind of dog whistle to the assembled Wall Street sharpies. Wednesday will see whether the pattern holds or not.
A drop below the 50-day MA would send a strong signal that all is not well and further downside would be anticipated. Given current conditions, it would be probable that investors might be seeking safe shelter, but where? On Tuesday, everything was down, including gold, silver, bitcoin and long-dated treasuries, with yields on the 10-year note and 30-year bond hitting 4.81% and 5.27%, respectively. So, where to hide? Oil futures? Copper? Zinc? Cash would be the more obvious choice for most, as protecting assets becomes more important than booking profits. Making four percent in a money market, even in an inflationary environment, makes just enough sense.
Still, the degree to which Wall Street and the Trump blow hards fix the narrative cannot be understated. There's just as good a chance that markets will rally on Wednesday. After all, August PPI and CPI won't be released until Thursday and Friday, so there's still a chance to make some money before the next big data drops. All it would take is one Trump "truth" posting to move the needle.
With the opening bell dead ahead, stock futures are near the lows of the morning, gold and silver are rallying, and Brent crude topped $100 overnight. WTI crude futures are sitting at $95.70.
By all appearances, the Dow is set to break below its 50-day moving average, which would be a strong sell signal.
Why you shouldn't own bitcoin or any other crypto "assets."
Today's lesson is an excerpt from BitcoinMagazine.com:
The Liquid Network said Sunday that purported white-hat hackers withdrew about 4,000 bitcoin, worth about $320 million, from the federation wallet that backs L-BTC.Bridge nodes were disabled, and the sidechain was paused. Other issued assets, including USDT, DePix and RWAs, were unaffected, the official account said on X.
The Liquid Network is a federated sidechain of Bitcoin, founded by Adam Back’s Blockstream. The Liquid chain issues a variety of assets such as LBTC, which it backs with BTC on the Bitcoin main chain, held in a large multisig of 15 corporate and known members. 11 of the 15 members need to sign a valid multi-signature transaction to move coins from the treasury. Before the hack, the treasury held over 4200 BTC; after the hack, Blockstream’s proof of reserves page reports a little over 207 BTC left.
The hackers withdrew 4,019.4 BTC from the reserve address in a peg-out transaction using the SideSwap Peg-out Authorization Key. SideWap is a bridge exchange and a member of the Liquid Federation. While details on the mechanism of the hack are not confirmed yet, it appears an inflation bug on the LBTC side chain was exploited by the hackers to create over 4,000 LBTC that did not exist before, and cash them out for on-chain bitcoin from the federation. Because the transaction appeared as valid, given the consensus bug, the federation members’ HSM security servers signed the BTC withdrawal transaction, worth roughly 320 million at the time.
Seriously, how much of that did you understand?
The point is that crypto assets can be created, diverted, rehypothecated, counterfeited, and/or stolen in a variety of manners, none of which are well understood by the average, or even above-average, investor.
At the Close, Tuesday, September 8, 2026:
Dow: 52,786.07, -628.18 (-1.18%)
NASDAQ: 26,421.41, -85.58 (-0.32%)
S&P 500: 7,673.52, -45.08 (-0.58%)
NYSE Composite: 24,473.06, -166.19 (-0.67%)
Posts
No comments:
Post a Comment