Good Evening Traders and Investors and thank you for joining me for another edition of the Magnelibra Markets Podcast, I’m your host Mike Agne and today’s episode #26 is entitled “Bulls Reassert Their Power and Big Tech Earnings & Some Tradeable Thoughts”
DISCLAIMER: The following podcast is for educational purposes only. This is not a solicitation to buy or sell commodity futures or options. The risk of trading securities, futures and options can be substantial and may not be appropriate for all listeners.
The markets were really stuck in a range for most of the day, that is until the US Treasury announced their Q1 borrowing estimates, which came in at $760Bn, some $55Bn lower than estimated as well as a $202Bn Q2 borrowing estimate. This data sent the equities up to new highs and a further bang the close move added more buying by the end of the day as late buyside flows came pouring in. For now this lower borrowing estimate, capped off a decent sideways to higher day for the equities and US treasury markets.
Let’s take a look at the Magnelibra Settlement page to see where everything settled out on the day here. The US treasuries were well bid across the board with a nice parallel shift across the maturity spectrum as both the 10Y and 5Y were both down nearly 7bp on the day. The equities were led by the Nasdaq and Russell2k +179 points and 34.30 respectively with the SP finishing +38.25 points on the day. Bitcoin has rebounded from the $38k level to $43k once again and the Dollar was weaker across the board except against the Euro and Pound. Energy weaker across the board as well with metals posting a solid day with silver up nearly 38 cents:
As far as the Model Tracker, there are no changes today and we will suspect this week to either confirm the trackers bias or cause it to move toward a more neutral stance across the market segments we cover. To those new to Magnelibra, this Futures Model Tracker mirrors our proprietary trading model that we use for our Commodities Trading Advisory and it can be custom tailored to an individual investors own risk tolerances and portfolio goals. For the podcast here, this tracker is an educational tool to visualize how we construct a long/short cross sector allocation model:
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