Global futures are tanking again on Friday morning, with the US majors down around 0.8% pre-market. We're seeing a sea of red across Europe and Asia as well, with the DAX, CAC40, FTSE100, and Hang Seng all down around 1.5%. Vix is catching a strong bid this morning, and is back at a 33 handle and up around 12% pre-market.
The short squeeze bonanza continues this morning, with hedge funds suffering max pain, as retail investors trample on their shorts, one by one, and in carefully coordinated fashion. As we mentioned yesterday in our analysis, "As hedge funds continue to suffer massive losses from these running short squeezes, they're forced to liquidate their long positions in the most loved companies. This could be why we're seeing broader market weakness this morning despite strong quarterly earnings reports."
The dollar (DXY) is trading flat, and hovering between the descending trendline, and IHS neckline just above. A break above the neckline could put major pressure on risk assets. The 10Y yield is blowing up this morning after a strong bounce near the 50 day MA. We're now back above the 21 day EMA, and sitting around 1.09%.
In Crypto, Bitcoin is soaring after Elon Musk tweeted about the asset, and changed his Twitter description to simply "#Bitcoin". At 3AM on the dot, Bitcoin went parabolic, and rose by as much as 15%, back to a $37k handle. Maybe the SEC may want to look into this? Wait, who? While crypto's are soaring, so is good ole' original money, Gold. We saw a strong bounce off the 200 day MA at $1,849/oz, and we're up 1.5% on the day, and sitting at $1,870. Needless to say, we're seeing a risk off mood across the board as we approach the cash open.
Key levels to watch today on SPY are the 21 day EMA at 377.47 for strong resistance, and the 50 day MA, sitting at 370.55, for strong support. The 50 is actually overlapping the lower band of the white channel. If bears capture this level, the almighty megaphone is back play, around 361. As I write, we're getting panic bid towards the 21 day EMA. Let's see what the hedge funds have to say today in rebuttle to the WSB crowd.
Thanks for your time today guys, and I hope you enjoyed the analysis. If you'd like to follow the price action all day, join us over at the Hedge of the World website for our live daily play-by-play. Have a great weekend! 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.
The short squeeze bonanza continues this morning, with hedge funds suffering max pain, as retail investors trample on their shorts, one by one, and in carefully coordinated fashion. As we mentioned yesterday in our analysis, "As hedge funds continue to suffer massive losses from these running short squeezes, they're forced to liquidate their long positions in the most loved companies. This could be why we're seeing broader market weakness this morning despite strong quarterly earnings reports."
The dollar (DXY) is trading flat, and hovering between the descending trendline, and IHS neckline just above. A break above the neckline could put major pressure on risk assets. The 10Y yield is blowing up this morning after a strong bounce near the 50 day MA. We're now back above the 21 day EMA, and sitting around 1.09%.
In Crypto, Bitcoin is soaring after Elon Musk tweeted about the asset, and changed his Twitter description to simply "#Bitcoin". At 3AM on the dot, Bitcoin went parabolic, and rose by as much as 15%, back to a $37k handle. Maybe the SEC may want to look into this? Wait, who? While crypto's are soaring, so is good ole' original money, Gold. We saw a strong bounce off the 200 day MA at $1,849/oz, and we're up 1.5% on the day, and sitting at $1,870. Needless to say, we're seeing a risk off mood across the board as we approach the cash open.
Key levels to watch today on SPY are the 21 day EMA at 377.47 for strong resistance, and the 50 day MA, sitting at 370.55, for strong support. The 50 is actually overlapping the lower band of the white channel. If bears capture this level, the almighty megaphone is back play, around 361. As I write, we're getting panic bid towards the 21 day EMA. Let's see what the hedge funds have to say today in rebuttle to the WSB crowd.
Thanks for your time today guys, and I hope you enjoyed the analysis. If you'd like to follow the price action all day, join us over at the Hedge of the World website for our live daily play-by-play. Have a great weekend! 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.
