Thank you for joining me for another edition of the Magnelibra Markets Podcast, I’m your host Mike Agne and today’s episode #14 is entitled “Nasdaq Explodes Higher So Too Does Consumer Credit”
But first a quick regulatory disclaimer:
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 is not for everyone. Such investments may not be appropriate for all listeners.
First lets discuss this afternoons consumer credit report, where the November debt expansion blew out the $9Bn expected number coming in at $23.8Bn! So we continue to see credit usage explode and we know traditionally November is a big month, but this number was nearly a 3x blowout past expectations, and no higher interest rates don’t seem to be affecting things too much. However we won’t make too much of this as we would suspect the numbers to be curtailed here in the coming months as spending subsides and budgets become a bit tighter. It is something that we do need to keep an eye on and no doubt the buy now pay later credit companies will see a surge to the stocks off of this, but will it last???
Ok in this mornings podcast I talked about the varying time frames and how to locate specific levels of support and resistance. In regards to the Nasdaq futures we highlighted the 16555 level in the hourly and daily charts as being the bulls initial hurdles to reassert control. Well when we look at today’s settles we can see the rally was massive. In fact it was the contracts best day in nearly 2 months as the Nasdaq futures settled at 16803.75 +343.50 points. We love this move today and it sets the tone for a continuation pattern higher, now we know our support is 16555 underneath based upon the analysis we did earlier today.
As far as the other equities the SP500 futures are back above 4800, the Russell2k now back above 2000. Clearly the Nasdaq was the big winner today lifting all the risk assets with it with bonds and foreign currencies all higher. Crude was the biggest loser dropping back off over $3 closing at $70.77 on the Feb contract with Nat Gas up again today, now +18.5% on the year thus far.
Bitcoin posted a break out finally as ETF hopeful buyers seem to be rushing in here front running the approval as Bitcoin settles right near $47k on the day. As we have noted before we do not like any Wall Street apparatus when it comes to Bitcoin. We do not believe it is consistent with the core decentralized ideology that Bitcoin represents and ultimately will be used to subvert it, which we know will fail. Bitcoin represents freedom and a decentralized frictionless peer to peer self custody system, an ETF adds multiple layers of counterparty risk and a mere claim on a share of ownership of Bitcoin. We do not recommend investors looking for exposure to this to buy ETFs rather we like direct purchase and cold storage.
