Futures are trading higher on Monday morning (at new ATH's again), to kick off the second week of February. The S&P tagged a 3900 handle with the democrats $1.9 Trillion dollar stimulus proposal back in focus. We've been discussing stimulus for quite some time now, and it seems the most effective stimulus is the one that never comes, just like the best trade deal with China, was the one that never came. The buy the rumour is the trade of the decade, as traders chase perpetual narratives of hope, and optimism, over valuations, growth, and logic.
Crude is catching a bid, and is showing a 60 handle, while the 10Y yield just saw it's highest level in almost a year at 1.20%. We discussed the path that rates are on, and the 10Y yield looks poised to test the 100 MA (w) around 1.355% as early as this week. We're also seeing Bitcoin at new high's around 42k off the back of news that Elon Musk's Tesla has bought over $1 Billion worth of the asset. Gold is rebounding off it's recent low of 1785.13/oz, and as of this morning, we're trading back around 1823/oz. The dollar saw some light selling on Friday after tagging a high of 91.60. We're currently sitting at 91.20 in premarket trade, and looking strong.
The Vix is back at a 21 handle, and is seeing some support just below the ascending trendline, which was lost on Thursday last week. We saw a low of 20.90 on Friday, but we've since caught a bid, and we're trading around 21.70 as of 8:30AM. This is among the lowest post March crash lows. The daily RSI appears to be reversing around a 45 handle, but is showing room for further downside in the nearterm, as investors and traders alike, bask in their quasi-inebriated state of euphoria.
The Put/Call is showing extreme complacency among investors, as evidenced by recent price action, but we haven't been seeing as many extreme skews as we were before. We're sitting around a .50 handle, with .30 - .50 range setting a strong mold for interim trade/sentiment. Finally, the SPY is set to open around 389, with essentially no resistance overhead, except logic. If the bulls don't show up with strong demand for risk, with participation being as horrible as it is the past few weeks, we may finally be in store for a notable correction. Considering the fact that there is no value in the market, instead of taking on risk via equities, we're taking a closer look at the cryto space, as well as commodities, for near term profitable trading opportunities with a low risk profile. More on this as the week progresses...
Thanks for your time today guys! Head on over to www.hedgeoftheworld.com for our live analysis to begin shortly. Cheers, Michael.
*The information and analysis shared in this post is not financial advice. Always conduct your own analysis and research. I am/ we are currently holding positions in UVXY, HUV, HQD, QID.
Crude is catching a bid, and is showing a 60 handle, while the 10Y yield just saw it's highest level in almost a year at 1.20%. We discussed the path that rates are on, and the 10Y yield looks poised to test the 100 MA (w) around 1.355% as early as this week. We're also seeing Bitcoin at new high's around 42k off the back of news that Elon Musk's Tesla has bought over $1 Billion worth of the asset. Gold is rebounding off it's recent low of 1785.13/oz, and as of this morning, we're trading back around 1823/oz. The dollar saw some light selling on Friday after tagging a high of 91.60. We're currently sitting at 91.20 in premarket trade, and looking strong.
The Vix is back at a 21 handle, and is seeing some support just below the ascending trendline, which was lost on Thursday last week. We saw a low of 20.90 on Friday, but we've since caught a bid, and we're trading around 21.70 as of 8:30AM. This is among the lowest post March crash lows. The daily RSI appears to be reversing around a 45 handle, but is showing room for further downside in the nearterm, as investors and traders alike, bask in their quasi-inebriated state of euphoria.
The Put/Call is showing extreme complacency among investors, as evidenced by recent price action, but we haven't been seeing as many extreme skews as we were before. We're sitting around a .50 handle, with .30 - .50 range setting a strong mold for interim trade/sentiment. Finally, the SPY is set to open around 389, with essentially no resistance overhead, except logic. If the bulls don't show up with strong demand for risk, with participation being as horrible as it is the past few weeks, we may finally be in store for a notable correction. Considering the fact that there is no value in the market, instead of taking on risk via equities, we're taking a closer look at the cryto space, as well as commodities, for near term profitable trading opportunities with a low risk profile. More on this as the week progresses...
Thanks for your time today guys! Head on over to www.hedgeoftheworld.com for our live analysis to begin shortly. Cheers, Michael.
*The information and analysis shared in this post is not financial advice. Always conduct your own analysis and research. I am/ we are currently holding positions in UVXY, HUV, HQD, QID.
