After another run around yesterday on taper talks by Fed Chair, Jerome Powell, global markets are screaming higher, and headed back for their ATH's. As of 8:30AM, the Dow was up 0.34% to 35,051.80, the S&P500 is up 0.18% to 4,408.40, the Russell was up 0.66% to 2,240.10, and the Nasdaq was flat at 15,018.10. China convened a meeting with top banking officials after markets reacted negatively to a broad regulatory crack down. This has Asian markets roaring higher with the Hang Seng leading the way, up a whopping 3.29% to 26,218.50.
Moments ago we saw Q2 GDP come in at 6.5% vs the 8.5% expected. Initial claims came in at 400k vs the 375k expected, while Continuing Claims came in at 3.269MM vs the prior print of 3.262MM. At 10:00AM we'll see Pending Home Sales with the consensus estimate at 0.8% for June. Not that market signals or fundamentals mean anything anymore. But, I digress.
After Powell's promise of more dollar debasement with over $1.4 Trillion in stimulus flowing in on an annual basis, the metals are being heavily bid today for a change. Gold is up 1.7% to 1,830.50, Silver is up 2.85% to 25.59, and Platinum is up 2.04% to 1,079.70. Of course, as inflation hedges are bid, the dollar (DXY) is puking, and is down -0.40% on the day and sitting at 91.95.
FB fell by over -3% in premarket trade after the company reported strong earnings, but admitted their outlook is turning negative with new Apple advertising rules being implemented. It looks like we're seeing yet another strong earnings season, but more often than not, I'm seeing stocks sell off on strong earnings. Potentially, we're seeing large funds seeking to reduce equity exposure by liquidating positions on strong earnings. Due to the "buy every dip," cult-like behaviour in markets, transferring risk on to unsuspecting retail investors has never been easier.
According to Peter Oppenheimer at Goldman, "Buying the dip mentality in general does make sense because we do have policy settings which are really going a long way to reducing the tail risk for investors, the combination of extremely loose monetary policy and forward guidance, together with fiscal support, suggests that deflationary risks that dominated the post-financial crisis era are moderating." I guess who needs a real market when you have the Fed stealing the working class' wealth to keep asset prices rising, and zombie corporations lights on.
In crypto land, Bitcoin (BTCUSD) hit a massive wall at the 21EMA (w) around 39,437. But, we're still hovering just above this level, and the bears have until EOW to recapture this resistance level or risk a potentially massive rejection.
Lastly, the US senate voted on, and agreed upon a new infrastructure package of $550 Billion. That's not quite $3.5 Trillion, but hey, it's more free money, folks! The farce continues. What can I say, patience is a virtue.
I'm working on some new strategies for you guys today. The old Vix trade is still on the board, and I'm holding my UVXY and HUV (for now), but we need some new and exciting ideas to trade asap. I'm looking at some potential longs (while hedging downside with Vix and tight stops), as well as shorts, so let's discuss a few of those in the private Telegram group tomorrow and get the ball rolling. Best of luck out there today, my friends, and see you guys at the opening bell tomorrow to wrap up the week. Cheers, Michael.
Moments ago we saw Q2 GDP come in at 6.5% vs the 8.5% expected. Initial claims came in at 400k vs the 375k expected, while Continuing Claims came in at 3.269MM vs the prior print of 3.262MM. At 10:00AM we'll see Pending Home Sales with the consensus estimate at 0.8% for June. Not that market signals or fundamentals mean anything anymore. But, I digress.
After Powell's promise of more dollar debasement with over $1.4 Trillion in stimulus flowing in on an annual basis, the metals are being heavily bid today for a change. Gold is up 1.7% to 1,830.50, Silver is up 2.85% to 25.59, and Platinum is up 2.04% to 1,079.70. Of course, as inflation hedges are bid, the dollar (DXY) is puking, and is down -0.40% on the day and sitting at 91.95.
FB fell by over -3% in premarket trade after the company reported strong earnings, but admitted their outlook is turning negative with new Apple advertising rules being implemented. It looks like we're seeing yet another strong earnings season, but more often than not, I'm seeing stocks sell off on strong earnings. Potentially, we're seeing large funds seeking to reduce equity exposure by liquidating positions on strong earnings. Due to the "buy every dip," cult-like behaviour in markets, transferring risk on to unsuspecting retail investors has never been easier.
According to Peter Oppenheimer at Goldman, "Buying the dip mentality in general does make sense because we do have policy settings which are really going a long way to reducing the tail risk for investors, the combination of extremely loose monetary policy and forward guidance, together with fiscal support, suggests that deflationary risks that dominated the post-financial crisis era are moderating." I guess who needs a real market when you have the Fed stealing the working class' wealth to keep asset prices rising, and zombie corporations lights on.
In crypto land, Bitcoin (BTCUSD) hit a massive wall at the 21EMA (w) around 39,437. But, we're still hovering just above this level, and the bears have until EOW to recapture this resistance level or risk a potentially massive rejection.
Lastly, the US senate voted on, and agreed upon a new infrastructure package of $550 Billion. That's not quite $3.5 Trillion, but hey, it's more free money, folks! The farce continues. What can I say, patience is a virtue.
I'm working on some new strategies for you guys today. The old Vix trade is still on the board, and I'm holding my UVXY and HUV (for now), but we need some new and exciting ideas to trade asap. I'm looking at some potential longs (while hedging downside with Vix and tight stops), as well as shorts, so let's discuss a few of those in the private Telegram group tomorrow and get the ball rolling. Best of luck out there today, my friends, and see you guys at the opening bell tomorrow to wrap up the week. Cheers, Michael.
