The Treasury’s bond buying is QE by another name, and crypto and commodities got the message this week. We caught the move in MSTR, Ethereum fired a squeeze with a Moxie price trigger, and FCX is breaking out to all-time highs. But under the surface, breadth is stalling, and with seasonal weakness and midterms ahead, I am watching whether this rally can keep swimming upstream.
The overall market has been in extreme chop mode with no real direction. The volatility is low and it is hard to sell premium, so talking that in account, here are 3 ideas you can consider right now to add to your portfolio.
I’m starting tonight with the long bond and the 10-year, because the intervention news is there but the move isn’t strong enough to convince me yet. The S&P is still losing squeeze momentum and I’m watching for a move back to $7,600. The name I actually want you on is Tesla: it’s closing into a 15-minute squeeze, $350 is the inflection, and clearing it opens a path to $360.
Rare session today. We gapped down and then sat in a range of less than 20 points, and the bigger story was the reversals showing up across the semis. The SPX finally cracked the $7698 level I have been watching, which opens the door to the 21 EMA at $7647. I am playing for reversion to the mean and using it to shop for longs.