Stocks Lag Risk Asset Rally

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Stocks are in negative territory despite yields coming off of 52 week highs. Gold breaks 2000 and the White House announces a plan to purchase 6 million barrels of crude to replenish the SPR.

Chris Chavez, market strategist

TRANSCRIPT
Despite yields coming off of their 52 week highs, stocks are in negative territory. Other risk assets gold, silver, crude oil, all positive here today. So perhaps we’re seeing a little bit of selling, you know, leading into corporate earnings.
Next week. We’re going to get a lot of data still housing data inflation data on Friday. So, you know, there’s a lot that could still, you know, change this narrative for Q4. However, I do think, you know, with a lot of spending typically happening this time of the year and, you know, maybe we do start to see a little bit of slowdown coming into Q1 2024 sets a nice narrative for yields potentially coming off of their highs.
And, you know, maybe we see a rally into Q4 looking at the Nasdaq. So again, headwinds are going to be earnings inflation data, housing data next week. Now looking at, you know, gold and silver, gold has just been completely resilient to interest rate yields here as of late. And now that we’re seeing yields coming off of their highs, it’s just fueling this rally even more, seeing a lot of strength in the precious metals complex here.
Definitely something to keep an eye on. And I think that there’s room to go higher, especially if we can continue to see yields come off of their highs. Now, when we’re looking at crude oil, the White House announced that they’re going to be refilling the spears repurchasing about 6 million barrels, and they want to do so by January of 2024.
Their price target $79 or less. So where crude is today, where, you know, 90, 90 barrel crude or so, $90 a barrel crude. So we have a ways to go before we’re at the White House’s target where they want to refill the spears. Now, they did raise that level from their previous buy level of $70 where they wanted to repurchase crude oil.
So something to pay attention to. It’s, you know, definitely providing a little bit of lift here to the crude market here today. Seeing some of that demand there today. We do have a couple more Fed members speaking as well. So some more talks to pay attention to. Now, looking at some of these technicals that we’re going to want to watch as we’re off of these lows.
We hit our major three star support levels fairly well, especially looking at the S&P major. Three star support is 40 to 51 and a quarter to 4255 and a half. Nasdaq three star support’s going to be 44 or 14 666, rather, 214 702 crude oil. A pivot pocket to keep an eye on is going to be 8888. So if we’re above 88, 88, you know, typically we’re seeing a little bit more of a follow through to the upside below.
There you typically see a little bit more selling pressure and gold, three star resistance. We’re seeing a wild move here as of late 2009 and 2/10 to 2012 and 7/10 an ounce. Reach out to our trade desk if you have any questions we’re here for you. Remember, futures trading involves substantial risk of loss 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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