$900 Billion Pandemic Relief Plan
GFBP Positions Tracker Included
What should have occurred months ago, was finally agreed upon tonight by Congress, a $900 Billion pandemic relief plan! Some of the highlights:
Direct payments of $600 to most Americans and $300-per-week in enhanced unemployment benefits
Expiring programs for gig workers and the long-term unemployed also would continue.
$284 billion for the Paycheck Protection Program that provides forgivable loans to small businesses
The plan is expected to be passed by both the House and Senate tomorrow. We had to include the cartoon Zerohedge used on Twitter:
We won’t begin to underestimate the massive handouts bills like this come with, but real Americans need help so we have to take the pork with the beans right?
The big question now becomes how will the equities react? We tend to feel that many heavy handed longs may opt to use the news to sell. However we can’t help but think with more money going to MainStreet here, perhaps some will end up in Robinhooders accounts running PEs even higher. With that said, the pros will most likely push here and drive momentum higher and drag the weak hands in before they pull the rug out and cause some pain.
With that said let’s look at a few charts, first up SP500 where 3720 would be the upside target again here with 3686 initial key support:
Next up the Euro, where some sellers in Asia tonight have shown up and if the Euro falls below 121-70 we would say a short term top may be forming:
Next up is Crude which has also backed off near the 0.786 Fib Target/Reversal level, longs be warned, this isn’t a knife to be caught in our opinion:
Next up let’s look at Silver which continues its bull run which saw the massive support level down at $22 hold nicely:
Finally Bitcoin continues to hover near $24k and we suspect many new players jumping in once again and this is ultimately a good thing for the ecosystem, however we feel that the longer we trade back and forth here, some large selling may ensue and lead momentum lower. No we aren’t picking a top rather we are using any consolidation a good thing!
Also, Coinbase.com is ready to go on their IPO filing an initial draft submission, so this will be a fun one to watch…we remember back in 2016 when USAA took a decent chunky $75m Round C funding in this bad boy, we thought that lent credence to what Coinbase was going to accomplish in the future.
NO matter what you think about Bitcoin, no matter what you thing about the price of equities or asset inflation in general, this is the only fundamental chart that matters:
Finally we wish everyone a very Merry Christmas and Happy New Year. We know celebrations will be muted, well maybe the will maybe they won’t. Whatever the case enjoy the time as its been a very difficult year for many and with that we need to be optimistic on the future and what’s in store.
We hope that better more prosperous times for all of you and we hope you share our work and continue to support us as we can only grow if you share and subscribe. We expect limited content till the end of the year and for today, we will add Magnelibra’s Global Futures Benchmark Program Positions Tracker here in the everyone post. This is the newsletter trading proxy that only Founding Subscribers can receive. It’s truly the flagship newsletter offering where we allow you insight to Magnelibra’s actual position sentiment into the markets we follow. Not only do you get the sentiment positions, but you also get the programs adjustments in real time as they occur. Its a great way to view our proprietary systematic sentiments for the futures markets that we cover. Think about giving at a try for next year!
Here is the GFBP Positions Tracker for end date 12/18/2020:
-Magnelibra Econemotions
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