Hammer Time! Equities Reversed
Settlements plus GFBP Positions Tracker
Alright so we sent out an earlier market update highlighting the euphoria of the equities as they rallied up hard led by the Russell2k which at the time of our earlier post was up 6%. Well, as the day wore on, it seems like major tech led sell programs hit the boards and the Nasdaq swung from 12400 to settle down at 11820.50 -254.50 points some 580 or so points off its highs, that is the quintessential “Hammer!” or here look at the SP500 daily chart:
We have to say this set up if not reversed tomorrow will put a major top in here for some time and we will see lower probes back down. Here is the Nasdaq:
As far as the QTFAANGMs that we follow as Netflix and Amazon just punished:
Not to add injury to insult but this fundamental Fwd P/E chart comes to mind here, yea history rhymes and with interest rates rising, they are telling Magnelibra, whom spent 2 decades as fixed income US Treasury arb that the bonds smell blood in the water, so tread lightly:
The US Yield Curve put in a big ole’ Bear Steepener as US Govt 10yr yields hit 0.958 %:
As far as the overall settlements today here is how the day finished and note we have rolled the Vix to Dec and the Energies to January. Also note the Yen move as well as the Metals!
The Magnelibra Econemotions Global Futures Benchmark Program Positions Tracker continues to play defensive during this uncertain election time and it benefitted from the Index butterfly today and will be looking to re add the ZB to the long side and perhaps cut the Dow future long after today’s reversal.
Alright that’s it, its been a long day, we hope you got something out of all of this and we hope you are keeping your head on your shoulders and we continue to warrant caution as the election results will continue to take time to transpire and work itself out. Also we may throw an analog on the SP500 chart as this set up isn’t looking good and we suspect even the hint of a reversal of this Biden win and a Pfizer vaccine let down will smash this market further. Seems like today was the roll tack out. Stay tuned and share our work please!
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-Magnelibra Econemotions
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