After Friday's volatile options expiry, global futures are surging (after a somewhat muted MLK day), erasing most of Friday's losses as investors found more risk appetite. This was off the back of a potential dovish speech from Biden's pick for Treasury Secretary, Janet Yellen, who is scheduled to speak at 10AM this morning. Asian stocks were notably higher, while European shares traded relatively mixed.
After breaking above the neckline, and seeing a strong break above the long-term descending trendline, the Dollar saw a notable rejection yesterday, and is now trading below these key resistance levels, around 90.43. The 10Y yield remains elevated this morning, and is sitting around 1.107%, with strong support at the 50 day MA (0.94%). We could see some big moves in treasuries today off the back of Yellen's remarks, asthey could help indicate the near term trajectory of the dollar, as well as rates. Gold is off it's Friday lows, and is up around half a percent. We're now sitting at $1,838, while Bitcoin hovers around 37k. Ethereum is up over 12% today, as investors continue to diversify their crypto portfolios beyond Bitcoin.
SPY is back at the key 378 level in pre-market trade, which puts us just above the 21EMA (h), as we approach the cash open. The overnight gap ups have seemingly become the market's new constitution, and while we're all asleep at night, dreaming about a day when politicians and tech titans finally leave us the hell alone, markets melt higher, crushing volatility, and price discovery in the process. I expect to see resistance at the 378 level today, (green horizontal line), which is support turned resistance, as of Friday. The bears job today will be to defend the 21EMA (h), and recapture the 100MA (h) around 375.25. If the bulls take advantage of the gap and bullish sentiment, they'll be aiming to recapture the upper band of the white ascending channel, now sitting around 379.50. Vix is back at a 22 handle off the back of the irrational overnight exuberance. But, the ascending trendline just below us continues to hold up against market maker and central bank forces, dead set on crushing volatility.
In other news, Goldman Sachs followed JP Morgan's lead, and smashed rev and profit expectations this morning, nearly doubling their quarterly profit vs a year ago to $4.5 Billion. Anyone still confused who the primary beneficiaries are from all this "stimulus" and "liquidity"? Hint: It's not Main Street. Lastly, will Trump pardon Assange and/or Edward Snowden in his final day in office? Needless to say, this is going to be a crazy weel folks. Buckle up!
Thanks for your time today guys! If you enjoyed the analysis, please head on over to the Hedge of the World website for our live daily play-by-play. Cheers, Michael.
After breaking above the neckline, and seeing a strong break above the long-term descending trendline, the Dollar saw a notable rejection yesterday, and is now trading below these key resistance levels, around 90.43. The 10Y yield remains elevated this morning, and is sitting around 1.107%, with strong support at the 50 day MA (0.94%). We could see some big moves in treasuries today off the back of Yellen's remarks, asthey could help indicate the near term trajectory of the dollar, as well as rates. Gold is off it's Friday lows, and is up around half a percent. We're now sitting at $1,838, while Bitcoin hovers around 37k. Ethereum is up over 12% today, as investors continue to diversify their crypto portfolios beyond Bitcoin.
SPY is back at the key 378 level in pre-market trade, which puts us just above the 21EMA (h), as we approach the cash open. The overnight gap ups have seemingly become the market's new constitution, and while we're all asleep at night, dreaming about a day when politicians and tech titans finally leave us the hell alone, markets melt higher, crushing volatility, and price discovery in the process. I expect to see resistance at the 378 level today, (green horizontal line), which is support turned resistance, as of Friday. The bears job today will be to defend the 21EMA (h), and recapture the 100MA (h) around 375.25. If the bulls take advantage of the gap and bullish sentiment, they'll be aiming to recapture the upper band of the white ascending channel, now sitting around 379.50. Vix is back at a 22 handle off the back of the irrational overnight exuberance. But, the ascending trendline just below us continues to hold up against market maker and central bank forces, dead set on crushing volatility.
In other news, Goldman Sachs followed JP Morgan's lead, and smashed rev and profit expectations this morning, nearly doubling their quarterly profit vs a year ago to $4.5 Billion. Anyone still confused who the primary beneficiaries are from all this "stimulus" and "liquidity"? Hint: It's not Main Street. Lastly, will Trump pardon Assange and/or Edward Snowden in his final day in office? Needless to say, this is going to be a crazy weel folks. Buckle up!
Thanks for your time today guys! If you enjoyed the analysis, please head on over to the Hedge of the World website for our live daily play-by-play. Cheers, Michael.
