Wake Up Call – The Day Ahead Jan 10, 2021

The meltdown continues in stock markets as US bonds weaken further with the different paths of Oil and stock markets after the FOMC minutes. Oil supported by geopolitical threats such as Kazakhstan impact A live recap of what happened while we slept overnight and what lies ahead. We go through charts on the S&P 500, Nasdaq, Russell, Oil and Natural gas. Markets again have eyes on Rates, Open Interest Gamma levels on the S&P 500 and mega stocks like Apple and Tesla.

  • Enjoy live commentary from Our Trading Room at youtube as the day wraps up – feel free to like and share

The markets:

  • S&P Futures vs Fair Value: -24.0
  • WTI crude futures are down to $78.70/bbl under the $79.51November 18 high
  • Natural gas up .014 at 3.865
  • Apple testing $169 after $3 trillion at $182.86
  • U.S. Treasuries yields lower in front of U.S. widening their losses as the night went on.
  • 2-yr: +2 bps to 0.89%
  • 3-yr: +5 bps to 1.20%
  • 5-yr: +5 bps to 1.55%
  • 10-yr: +4 bps to 1.81%
  • 30-yr: +3 bps to 2.15%
  • The U.S. Dollar Index is up 0.3% at 95.99.
  • 1 million Omicron cases in the US but the hope is that it will not strain hospitals and will lead to a faster herd immunity.
  • JPY is the strongest and the CHF is the weakest
  • Spot gold is down $1.84 -0.11% at $1793.50
  • Spot silver is down six cents -0.24% at $22.27
  • Bitcoin is trading down $41,448, Under December low at $41,967.50
  • Hang Seng increased 235.16 points, or 1.08%, to 23,747.
  • Shanghai stock exchange up 13.98 points, or 0.39%, to 3,593
  • Indian Sensex up 553.31 points, or 0.93%, to close at 60,298 points.
  • Singapore index also gained 21.50 points, or 0.67%, to 3,227.
  • Japanese stock exchange was closed on Monday for Coming of Age Day, an annual holiday.
  • Europe Stoxx 600 -1.1%. 
  • German DAX, -0.64%
  • France’s CAC, -0.7%
  • UK’s FTSE 100 -0.25%
  • Italy’s FTSE MIB -0.4%
  • Spain’s Ibex, -0.35%

Visit Traders Market Weekly: Traders Market Weekly: Hello There 2022 – TRADERS COMMUNITY for the daily calendar

Data out Today:

Overnight Stories in Depth

Take Two (TTWO) and Zynga (ZNGA) announced plans to merge in an effort to create a leading mobile game developer. ZNGA, which has seen the price of its stock get halved over the past year, is surging on the $9.68/share cash and stock buyout offer, representing a whopping 64% premium to its closing price last Friday. The maker of mobile games such as FarmVille and Words With Friends has struggled mightily from an execution and financial performance perspective, evidenced by its eight straight quarterly EPS misses.

2021 sector performances

Energy (+47.4%) and real estate (+42.3%) up more than 40.0%, followed by the information technology sector (+34.0%) with a 34% gain. The utilities (+13.6%) and consumer staples (+14.7%) sectors are up less than 15.0% this year. 

Within the technology sector, Apple (AAPL 172.12, -0.08, unch) is up 34.3% this year, Microsoft (MSFT 338.85, -0.47, -0.1%) is up 52.6%, and NVIDIA (NVDA 297.00, +1.14, +0.4%) is up a whopping 126.6%. 

  • China’s December Manufacturing PMI 50.3 (expected 50.0; last 50.1) and December Non-Manufacturing PMI 52.7 (expected 52.0; last 52.3)
  • South Korea’s December CPI 0.2% m/m (expected 0.1%; last 0.4%); 3.7% yr/yr (expected 3.6%; last 3.7%)

New York Fed Index Shows Global Supply Chain Pressures May Have Peaked – TRADERS COMMUNITY

The New York Federal Reserve released a new Index, The Global Supply Chain Pressure Index (GSCPI). The NY Fed concluded that global supply chain pressures may have peaked and might start to moderate somewhat going forward. The index uses 27 variables that are meant to capture factors that put pressure on the global supply chain, both domestically and internationally.

Around The Barrel – Crude Oil and Gasoline Outlook for 2022 – TRADERS COMMUNITY

Welcome to 2022, WTI Oil futures have rallied after OPEC+ holds the status quo. Last week EIA reported US Crude last Week crude drew -3576Kbbl (incl +1055kbbl build at Cushing). Gasoline stocks drew -1458kbbl. Utilization fell -.2% to 89.6%. Production +200k to 11,800 kbpd.

Into The Vortex – Natural Gas Outlook – TRADERS COMMUNITY

Into New Year and U.S. domestic natural gas demand for heating has weakened   Atmospheric G2 models said that warmer-than-normal temperatures in the eastern U.S. should continue to curb heating demand.  Last week EIA reported a draw of -136 Bcf of working gas in storage lower than expected. With the global energy crisis LNG exports continue to grow but we balance supply shortages with deliverability.

Earnings Calendar for Today

Any questions please feel free to ask them below. Trade Smart!

Have a great trading day!


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