The London Stock Exchange announced that they will allow Bitcoin and Ethereum backed ETNs to be listed, further supporting securitization of digital assets. Gold and Silver are holding steady ahead of tomorrow’s CPI data, and Tech sees an internal rotation trade.
Transcript
Good afternoon traders. It’s Chris Chavez with blue line futures and it’s your daily, midday market minute. Bitcoin is breaking through major resistance and precious metals continue to hold steady. But before we get to it, if you’re watching this video, like and subscribe if you’re on our website, there’s a link to direct you to YouTube, you can subscribe that way. We’d love for you to follow us. We would love for you to help us build our following. Yeah, so looking at risk assets here today. You’re really seeing cryptocurrencies Bitcoin and Aetherium specifically outperform precious metals are really holding steady silver slightly higher than gold. So you’re seeing a little bit of outperformance there. And this is all happening ahead of this week’s major inflation data. So some key things to watch and we’re gonna break it down here now. Now, one thing that I do want to highlight specifically when looking at crypto is the London Stock Exchange announced that they will now allow Bitcoin and Aetherium Exchange Traded notes to be listed at the London Stock Exchange. So really, what is this do this just further supports really more securitization for these types of products, you know, digital assets like Bitcoin and Aetherium. And with more securitization comes more demand. You know, this worldwide demand is really something to pay attention to. And now that we’ve seen some of these ETFs, like the Ibet, ETF go from zero and AUM to 10 billion after it was listed, which is some of the fastest growth and AUM that we’ve ever seen for ETFs. Now we’re starting to see this happen worldwide at the London Stock Exchange in the UK. And one thing I want to highlight is most households own stocks, through retirement accounts, like 401 K’s. So if you’re seeing these 401k plan providers, like, you know, fidelity, and BlackRock, which they currently have their own ETF, I think one way that this could start to move forward is now you’re starting to see other plan providers like Vanguard, which has yet to unveil a Bitcoin ETF, but other providers too, like maybe Schwab to really give access to retail, so that people can purchase a small amount of, you know, ETFs to hold exposure, you know, for the long term and a wealth portfolio for themselves in their household. So I think that that would be one way that this continues to move. But this news coming from the UK, the London Stock Exchange only opens more doors for people to gain access to having exposure in their investment portfolio. So as far as demand is concerned, it’s really making that more available. And that’s definitely one thing that’s further supporting Bitcoin and we are now above the previous all time high, which was really right around 70,000 and trading right around 73,000 today, so as long as we can maintain that 70,000 level today and close here. I think we are seeing a new bull market, certainly. And we have been seeing a new bull market, but that definitely further confirms it. So looking away from Bitcoin and cryptocurrencies, you’re seeing the precious metals hold steady here, not really seeing a huge move in yields. Today, all things are kind of quiet ahead of inflation data this week. As far as stock indices are concerned, you’re starting to see a little bit of an internal tech rotation. That’s what I’m calling it here is Google and Apple are positive, while meta and Vidya Microsoft are kind of slumping. Those three names were the big outperformance here, so far this year, and Apple and Google have kind of slumped and now you’re seeing the tide start to shift a little bit there. So definitely important to pay attention to. one data point that we did get this morning was New York Fed one year inflation expectations they came in at expectations of 3%. Shorter maturity yields are slightly positive today. However, longer maturities like the 10 year and the 30 year are really unchanged. So again, the major thing to pay attention to this week will be CPI ppi. Tomorrow, we’re gonna get CPI and a 10 year note auction some of these technicals to pay attention to for the s&p three star resistance level 5187 251 93 and the Nasdaq three star resistance level 18 To 52 to 18 to 88. Looking at crude oil, a three star support level, we are off of the lows today, but really my fear would be if we do start to reverse and roll over again. I want to see this three star support level held and that’s 7584 to 7617. I’m looking at Gold major psychological resistance 2200 to 2203. That’s a three start level to pay attention to there. 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.