After a choppy day yesterday, which looked nothing like efficient price action to me, US Futures melted up from around 1AM. We saw some weakness earlier on in the session, but the losses were quickly reversed, just as they were in the cash market. We're currently trading near all-time high's once agian, as a busy earnings week continues with Microsoft and AMD reporting after the closing bell. European markets were notably higher this morning as well, after a rough day yesterday, with Asian markets trading mixed. What changed, why the reversal in sentiment today? Central Banks.
After rallying hard yesterday, and hitting a 26 handle, Vix is back in the dumps with a 22 handle this morning. The name of the game is crush volatility at all costs, and whatever happens to price action, and price discovery as a result, is nobody's problem. The dollar caught a bid yesterday and briefly broke above the longterm descending trendline, but we saw another solid rejection with conviction. We also saw the 10Y Treasury yield tank back to the 21 day EMA level (1.05%), after a strong 2Y auction saw $60 Billion in paper trade at a low yield of 0.125%. Gold remains relatively flat at $1,855/oz, and crypto is taking a beating with Bitcoin back at a $31k handle, and Ether down 10% to $1,275. We'll see Consumer Confidence roll in around 10AM, which should give us a better sense of how Main Street is feeling after what I expect was a busy and expensive Christmas shopping season.
SPY is set to open at the top of the recent range, and has yet again, blown out all of the resistance levels sitting overhead. These overnight gap ups, while everyone is asleep, seem so one sided to me. If this was a game, and everytime the other team scored, the referee sent them to the bench to sleep, so the other team could score, we simply wouldn't watch that game. Well, welcome to the markets, and let's all hope this insane ponzi ends soon so we can go back to the game we all love so much. Having said that, we are at the top of the range again, and at the ATH, so I expect to see further selling today, off the back of yesterday's negative sentiment, and volatility. Let's see how the cookie crumbles today. As I've said before, the only way to prepare for trading this market, is to expect the unexpected.
Thanks for your time today guys, I hope you enjoyed the analysis. Stay tuned for our live play-by-play 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.
After rallying hard yesterday, and hitting a 26 handle, Vix is back in the dumps with a 22 handle this morning. The name of the game is crush volatility at all costs, and whatever happens to price action, and price discovery as a result, is nobody's problem. The dollar caught a bid yesterday and briefly broke above the longterm descending trendline, but we saw another solid rejection with conviction. We also saw the 10Y Treasury yield tank back to the 21 day EMA level (1.05%), after a strong 2Y auction saw $60 Billion in paper trade at a low yield of 0.125%. Gold remains relatively flat at $1,855/oz, and crypto is taking a beating with Bitcoin back at a $31k handle, and Ether down 10% to $1,275. We'll see Consumer Confidence roll in around 10AM, which should give us a better sense of how Main Street is feeling after what I expect was a busy and expensive Christmas shopping season.
SPY is set to open at the top of the recent range, and has yet again, blown out all of the resistance levels sitting overhead. These overnight gap ups, while everyone is asleep, seem so one sided to me. If this was a game, and everytime the other team scored, the referee sent them to the bench to sleep, so the other team could score, we simply wouldn't watch that game. Well, welcome to the markets, and let's all hope this insane ponzi ends soon so we can go back to the game we all love so much. Having said that, we are at the top of the range again, and at the ATH, so I expect to see further selling today, off the back of yesterday's negative sentiment, and volatility. Let's see how the cookie crumbles today. As I've said before, the only way to prepare for trading this market, is to expect the unexpected.
Thanks for your time today guys, I hope you enjoyed the analysis. Stay tuned for our live play-by-play 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.
Comment:
The live play-by-play is available at the Hedge of the World website. You can find the link in our profile!
