Yield Curve Steepens Sending Risk Assets Lower

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Weakness in risk assets today due to continued strength in the labor market. Jobless claims come in under expectations and the yield curve continues to steepen.

***TRANSCRIPT*** Good afternoon. Traders skirts Chavez with blue line futures and it’s your daily midday market minute. Stocks risk assets are in negative territory here today off of a steepening yield curve. But before we get to it, if you’re watching this video like it, subscribe if you’re on our website, there’s also a link to direct you to YouTube and you can subscribe that way. We’d love for you to follow us. We’d love for you to help us build our following. So we didn’t have a lot of economic data this morning, jobless claims. And we’re continuing to see resilience in the labor market. Expectations were 210,000. We got a print of 207,000. So came in under expectations. Still seeing strength, still seeing resilience. Now the yield curve today is steepening a bit. You’re seeing the shorter end of the curve actually in negative territory. You’re seeing some relief in yields. The longer end of the curve is either just about unchanged or positive by a basis point or two, depending on what duration you’re looking at, what maturity you’re looking at. So you’re seeing this yield curve start to steepen, which is really just confirming the strength that you’re seeing in the U.S. economy, strength in the labor market. We have a lot of economic data tomorrow to look forward to nonfarm payrolls, unemployment rate. We also have average hourly earnings. So this is going to be a headwind. Again, yields are going to remain a headwind here for risk assets. Keep in mind, the data is going to be really important moving forward. And the yield curve, too, is we’re starting to see this steepening trade play out. Now, looking at the Nasdaq, the S&P crude oil, silver, major support levels for all of these. Nasdaq major three star support is going to be 14, 734 to 14, 760. S&P three star support’s going to be 40 to 51 and a quarter to 4255 in three quarters. Crude oil, three star support, 80 to 96 to 80 to 98. Again, that $83 or so level, that’s pretty pretty key, pretty psychological level there. If we break in close below, they’re probably going to see a little bit more selling pressure and silver major four star support 2050. Now if you have any questions, be sure to reach out to our trade desk. We’re here for you. Remember, futures trading involves substantial risk of loss and is not suitable for all investors. ***END TRANSCRIPT***


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Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. 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.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500


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