Bonds are Rallying and Gold Hits a New Record High!

Transcript:

Good afternoon traders. It’s Chris Chavez with blue line futures and it’s your daily, midday market minute. Bonds are actually rallying here today, following the recent weakness that we’ve been seeing, and gold hits a new record high. 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 would love for you to follow us, we would love for you to help us build our following. And look in the markets here today, there wasn’t a lot of macroeconomic data really influencing some of the price action. But I do want to go back to last Thursday, seeing a little bit of fear prior to the release of Friday’s non farm payrolls data. So tomorrow, we have the release of very important inflation data. And I wouldn’t be so shocked to see a little bit of weakness into the close, especially with how we did see price action last Thursday. And the interesting thing about price action last Thursday was also that fed fund futures also started to tick a little bit higher, as far as you know, the conviction and interest rate cuts. The same thing is happening here today, with yields off of the highs and looking at fed fund futures. Now pricing in about 60 basis points, which is slightly more than where we were at yesterday. Again, that could start to shape out where into the end of the day, you do see a little bit of weakness, some anxiety surrounding CPI tomorrow, you know, if the numbers do come in hot, of course, you’ve seen some commodity prices, like the price of gasoline crude oil continue to push higher. And you know, that could be a potential headwind moving into the report tomorrow specifically for one component inside of CPI. Now when looking at the major indices, you’re seeing the Russell 2000, marginally higher, which would of course make sense, seeing yields lower the NASDAQ just about unchanged. The Dow Jones really lagging behind financials kind of struggling here today. Really, again, not much to hit on. Other than that we’re approaching, you know, major support, we’re gonna highlight some of these levels here in just a second. Some data to pay attention to tonight, we’re gonna get Japan producer prices. And the loan data, Chinese loan data that was expected yesterday did get moved to today, or actually tomorrow rather prior to the open. So some important stuff to pay attention to there before we get the release of CPI. Continuing to see a lot of strength in the metals, you know, Platinum palladium, as well, really waking up here today. Just wanted to highlight that especially as yields are coming down, seeing gold and silver off of the highs, which is a little bit interesting. Again, you typically do see the conventional fundamentals where you know, when you see easier financial conditions or interest rates are lower, that’s when you continue to see the next leg higher. So with interest rates lower here today, it did propel the metals forward at one point, and then we kind of reversed a little bit. So definitely some interesting price action here today. And I do think a lot of this is definitely surrounding CPI and some anxiety for the release tomorrow. So getting into some of these levels, three star support looking at the s&p 5231 and a quarter to 5237. Looking at the NASDAQ three star support is going to be 18,051 to 18,070 and crude oil three star support 8462 8493 I want to see us maintain really that $85 level or so to continue to hold this trend intact and silver three star overhead resistance 2252 to 20 or 2852 to 2857. If we can break and close above here, think we can push up to $29 which is going to be really that next level to pay attention to. 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.