Traders Cautious Ahead of Fed Meeting
Global Futures are notably in the red on Wednesday ahead of the Fed's January FOMC rate decision. The US majors are trading down around 1%, with the Russell taking a beating, and down over 2%. European and Asian markets are leading the way lower, with the Dax down as much as 2.25%, and the Hang Seng down around 1.5%. Vix is being heavily bid as one might expect, we hit a high of 27.76 moments ago, and we're still looking strong at a 27 handle as we approach the open.
The dollar (DXY) is breaking out again, and we're currently sitting above the descending trendline, just shy of the neckline on the IHS we've been observing lately. In rates, the 10Y yield continues to lose steam, as we approach the 50 day MA at .96%. We're currently sitting just below the 21 day EMA at 1%. The Put/Call ratio is a complete disaster with historical skewness being a concrete predictor, each trading day, of contiued complacency among investors. We're hovering around 44 in pre-market trade.
Gold is down notably on the week, but holding onto recent gains - we're sitting at $1,842/oz as of 9AM. In Crypto, Bitcoin continues to take a beating, and we're back at 30K handle once again, with plenty of room to the downside. Ether is also down big on the week, and is down over 10% at $1,237. The volatility in the crypto space is very attractive, but trading with caution is the name of the game.
SPY is set to open below the upper band of the white ascending channel, which should bring the 21 day EMA into play at 377.75. If this level is captured, we may see some support, just as we've seen each previous time the bears capture this key support. However, a clear break would put the bottom of the white channel back in play and the 50 day MA around 370.
Thanks for your time today guys, I hope you enjoyed the analysis. It's shaping up to be an excited day of trade, so stay tuned as we disseminate the day's price action in our live daily play-by-play to begin shortly (link to the website in profile). Remember, expect the unexpected. 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 dollar (DXY) is breaking out again, and we're currently sitting above the descending trendline, just shy of the neckline on the IHS we've been observing lately. In rates, the 10Y yield continues to lose steam, as we approach the 50 day MA at .96%. We're currently sitting just below the 21 day EMA at 1%. The Put/Call ratio is a complete disaster with historical skewness being a concrete predictor, each trading day, of contiued complacency among investors. We're hovering around 44 in pre-market trade.
Gold is down notably on the week, but holding onto recent gains - we're sitting at $1,842/oz as of 9AM. In Crypto, Bitcoin continues to take a beating, and we're back at 30K handle once again, with plenty of room to the downside. Ether is also down big on the week, and is down over 10% at $1,237. The volatility in the crypto space is very attractive, but trading with caution is the name of the game.
SPY is set to open below the upper band of the white ascending channel, which should bring the 21 day EMA into play at 377.75. If this level is captured, we may see some support, just as we've seen each previous time the bears capture this key support. However, a clear break would put the bottom of the white channel back in play and the 50 day MA around 370.
Thanks for your time today guys, I hope you enjoyed the analysis. It's shaping up to be an excited day of trade, so stay tuned as we disseminate the day's price action in our live daily play-by-play to begin shortly (link to the website in profile). Remember, expect the unexpected. 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.
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