Recompose and Refresh, a Terrific Six-Day Run | Morning Express | Equities, Energies, and Metals
E-mini S&P (March) / NQ (March)
S&P, yesterday’s close: Settled at 3908, up 27.75
NQ, yesterday’s close: Settled at 13,683, up 85.00
Fundamentals: U.S. benchmarks are settling in ahead of the bell and after a monumental six-day rally. All things considered, today should be a quieter consolidation session and we would not be surprised to see a little profit taking. With big earnings, ISM and jobs in the rear-view mirror, we now await Congress to draft fiscal legislation this week and CPI data tomorrow, all amid the continued vaccine rollout. Today, the Senate begins the second impeachment of former President Trump, but it is not expected to go anywhere as Republicans intend to hold party lines. After the close, we are eager for Twitter earnings, a holding at Blue Line Capital.
Technicals: We turned more Bullish in Bias last week and held such through yesterday. Although the market has not done anything wrong and certainly has not violated any levels of technical support, we want to dial back our Bullish Bias just a bit; as traders it is always crucial to realize gains. Regardless, the S&P is holding handedly out above a crucial level at ... Sign up for a Free Trial at Blue Line Futures to have our entire fundamental and technical outlook, actionable bias, and proprietary levels for the markets you trade emailed each morning.
Crude Oil (March)
Yesterday’s close: Settled at 57.73, down 0.24
Fundamentals: Crude oil extended gains overnight, pinging a high of 58.62 before peeling back. This has been a historic recovery across the energy space, and we believe there is much higher to go as stimulus and the vaccine rollout create a massive inflationary tailwind. However, as of yesterday’s close March Crude has already gained 18.7% in 2021 and it is overdue for a healthy consolidation lower at a minimum. At our managed fund, Blue Creek Capital, a CTA, as of this morning, we have peeled off and booked a bullish calendar dynamic. If you have been long, we suggest you do the same. By capitalizing now, you will be in a great position to buy a retest into our buy zone discussed below. U.S. inventory data will come into the picture as the day unfolds and current estimates are for a small build of 1.3 mb of Crude and 1.8 mb of Gasoline.
Technicals: We have fully Neutralized our cautiously Bullish Bias as the breakout of the weekly bull-flag has played out and stalled at key resistance at 58.94 and in front of added resistance just above $59. Price action is now below our momentum indicator at 58.00, signaling exhaustion, and battling at our previous upside target of 57.52; while trading below this pocket, it will encourage waves of selling. We will look for a buying opportunity into ... Sign up for a Free Trial at Blue Line Futures to have our entire fundamental and technical outlook, actionable bias, and proprietary levels for the markets you trade emailed each morning.
Gold (April) / Silver (March)
Gold, yesterday’s close: Settled at 1834.2, up 21.2
Silver, yesterday’s close: Settled at 27.576, up 0.557
Fundamentals: Gold, Silver, and the metals complex broadly gained ground overnight, finding tailwinds from a weaker U.S. Dollar and a nice three-day run in the Chinese Yuan. Furthermore, rates stabilized, and have yet to extend yesterday’s move which is seen as supportive to Gold and thus Silver. However, as we said here yesterday, technically there is a lot of overhead damage, or supply, and we are traders; this means capitalize on the bounce. Furthermore, we are a little concerned that risk-assets broadly are due for a wave of profit taking after an incredible six-day run and this would likely weigh on the metals complex.
Technicals: Gold’s rebound from last week’s bloodbath may have run its course in the near-term as major three-star resistance comes in at 1854.2; this is a level that we said yesterday will allow Gold to begin repairing such damage. However, there is tremendous overhead supply through here. It will be crucial for Gold to hold out above our Pivot at 1837 today and this will keep the tape within the utmost construction while it consolidates. As for Silver, it is running into major three-star resistance at 27.62-27.88 and struggling since yesterday. Our momentum indicator is catching up with the tape at 27.50 and will signal some exhaustion. However, holding above major three-star support at ... Sign up for a Free Trial at Blue Line Futures to have our entire fundamental and technical outlook, actionable bias, and proprietary levels for the markets you trade emailed each morning.
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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.