Crude and metals are rallying, yet stock indices are in negative territory. Longer duration treasuries are catching a bid.
TRANSCRIPT Good afternoon traders. It’s Chris Chavez with the blue line futures in your daily midday market minute we’re seeing crude and precious metals rally off of escalating geopolitical tensions. We did hear that Israel ordered all Gaza civilians to evacuate here within the next 24 hours or so. And that’s really putting some, you know, pressure on some of these commodity markets like, you know, crude oil. We’re seeing a huge pop today. / Gold and silver also seeing a really nice rally. You know, again, just kind of a flight to safety trade taking place there. Treasury yields on the longer end of the curve are well off of their highs, about ten basis points or so off of the highs. Now, when looking at this geopolitical conflict, really, we just don’t want to see any more escalations. / When you look at crude, the initial pop in crude over the weekend on Sunday night was 8724 and that was really the market baking in that risk premium, you know, seeing these geopolitical tensions. So that is going to be a level to watch, you know, moving forward. If you think see things further escalate, that 87, 24, that initial reaction, it’s going to be pretty important to pay attention to moving forward. / Now, when we’re looking at stock indices here today, we did get Michigan consumer sentiment. We also got one year and five year inflation expectations. And this is really what’s sending the, you know, stock indices, stocks lower here today. Consumer sentiment came in at 63 versus 67.2 expected and one year inflation expectations came in at 3.8% versus 3.2%. So this is a worry for sure for the macro markets. / You know, looking at stock indices, the reason being is, you know, basically with this data, it sounds like the consumer pricing and stagflation, you know, there’s not going to be as much spending, but they’re also anticipating higher inflation level. So that’s not good. Definitely, when you’re looking at some of these stock indices and we’re off of the, you know, initial highs, you know, today, initially we were positive, now we’re negative. / So major levels to keep an eye on. Again, crude that 8724 is going to be important. Nasdaq three star support’s going to be 15 104 to 15 112 S&P three Star support’s going to be 4355 and a half to 4356. And looking at gold, a huge rally in the metals here today, three star resistance, 1933 and 1/10 to 1934. / And 6/10. We’re right within this pocket here right now. So if we close above this level with some conviction, could see some more upside for the for the metals, for gold specifically, if you have any questions, 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