from Daily Market Wisdom with Nick Santiago
For more than 20 years, Master Trader Nick Santiago has been beating the markets. He’s made some incredible calls along the way and now he’s looking to spread the word. There’s no reason that the average trader should be coming up short. So now we’ve started a daily show to bring you up to date on the latest market developments. Nick will be sharing trades and concepts and discussing current trends.
Today:
1. Ugly Monday… The decline in the markets is continuing this morning. The S&P 5000 Index is now testing the May 20th lows. Yields are the real story as the 5-year note is inverting against the 30 year note. Yields on the 2’s and 10’s are also close to inverting. This is one of the main reasons for the decline since Thursday afternoon. Today’s decline is broad based and nothing including energy is being spared.
2. There are two key events taking place this week. First on Wednesday afternoon the FOMC meeting will conclude and the central bank will make their interest rate policy decision for the US. They are expected to raise the fed funds rate by 50 basis points, but many investors are expecting them to do more, perhaps 75 basis points. They are still behind the curve so I’m not sure it really matters. They need to catch up to the 2 year note yield and that is around 3.2%. This Friday is options expiration for June. It is also a quadruple witching expiration which means you have 4-different asset classes expiring this week. Buckle up, this week could be very volatile and filled with some serious whipsaw and institutional game playing.
3. Gold is getting pounded lower as everything deflates today. There are no safe havens today.
4. Dollar is making 9 year high. DXY just shy of 105. Could be heading much higher.
5. Bitcoin is breaking down as well. The possible sideways pattern for upside has failed and the down-trend resumes. It shouldn’t find a solid low for a while. I’m sure there will be bounces, but until it reaches 14,300 area I would be very careful.
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