Roller Coaster Market Sickness

After a relatively weak day yesterday across global markets, US futures are seeing some light volatility this morning with the S&P hovering around 386. 40 , the Dow at 31,400, the Nasdaq at 13,000, and the Russell at 2,236. European markets caught a light bid, while Asian markets were up notably. After seeing one of the best performing days for global markets sine June 2020 on Monday, investors seem a bit confused about what comes next for price action. Will we see persistent buying off the back of infinite failed corrections/the demise of risk management? Markets can't seem to swallow a loss of more than 3% over a week right now, so maybe we should all go long, and then everything would be awesome, right? Fuck that, I'll be the last bear standing. Nothing's changed, and that brings us to stimulus.

We should be gearing up for another round of bullshit stimulus narratives in the media this week, as today marks the senate's involvement in the bill, with March 14th set as the "signing into law" date. As I've mentioned in previous analysis, the stimulus proposal is a drop in the bucket. Households are going to spend this money before the quarter is done, or maybe they'll just spend it on taxes in April. But, as far as it's ability to impact productivity, or inspire a wave of new jobs/hiring, it's a failure of a distraction, and in my opinion, a complete joke of a "rescue package," for main street. Will it be a sell the news event for the 10th time? We'll soon find out.

Metals are selling off heavily this morning, with Gold , Silver , platinum, Copper , and palladium down over 2%. Crude is rebounding from yesterday's weakness, and is up around 2% on the day. The dollar is hovering around a 91 handle, and looking strong. After the recent break above the neckline around 90.75 on DXY , we should see increased bullishness as we approach the back nine of the week. In volatility , Vix is holding up strong, and is still at a 24 handle, after falling as low as 23 yesterday morning. I imagine as stocks race back near their ATH , certain trades are becoing quite crowded. Be on the look out for rapid interest in risk protection, should anything whatsoever materialize to the downside for risk.

Best of luck out there today, my friends! Our live analysis begins at 9:30AM. Cheers, Michael.

* I am/ we are currently holding positions in UVXY , HUV , HQD , QID .
For our live daily market analysis, visit us at http://www.hedgeoftheworld.com The information and analysis shared in this post is not financial advice. Always conduct your own analysis and research.


Selling the Stim news seems like as good a catalyst as any, that sht is already priced in 200% lol. @Eloquent
+3 Reply
Eloquent ProfitHarvest
@ProfitHarvest, sell that shiet and send it xD
+1 Reply
@Eloquent, once that 50 holds up, and the neckline on the QQQ, we'll keep roller coastering up. I got in early, waiting for the signal is the right play, of course.
+1 Reply
Hedge_Of_The_World ProfitHarvest
@ProfitHarvest, The Stim is a joke imo, it should be sold heavily. It's what, 6% of GDP? Lol. They're bringing a plastic fork to a gun fight. This will be the least productive $2 Trillion the government ever spent.
+1 Reply
Eloquent Hedge_Of_The_World
@Hedge_Of_The_World, Check out my last post, I think I figured it out
abigreen ProfitHarvest
my post for bushed by the bulls, I'm here with you buddy long shorts!
alitrader007 ProfitHarvest
Great analysis as usual! The longer this cycle of pullback/stimulus goes on the bigger this bubble is going to get, the key is not to hold the bag when shit hits the fan. Beside few position that I don't mind holding for years, I am only day trading now as the market doesn't have any clear direction right now!
+1 Reply
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