![[Gamma] Scalping Please](https://ibkrcampus.com/wp-content/smush-webp/2024/04/tir-featured-8-700x394.jpg.webp "[Gamma] Scalping Please")
By J.C. Parets & All Star Charts
Friday, 26th January
1/ Internet Stocks Hit Fresh Highs
2/ Will the 10-Year Treasury Yield Hold?
3/ Mexican Equities Break Out
4/ Grains Remain Elevated
Investopedia is partnering with All Star Charts on this newsletter, which both sells its research to investors, and may trade or hold positions in securities mentioned herein. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice.
1/ Internet Stocks Hit Fresh Highs
We’ve been emphasizing the recent leadership from technology stocks, which are leading markets higher as January draws to a close.
Today, the First Trust Dow Jones Internet ETF (FDN) was up roughly 1% as price pierced through the upper bounds of a short-term reversal pattern.
2/ Will the 10-Year Treasury Yield Hold?
All eyes are on U.S. Treasury yields as we approach next week’s FOMC meeting. We’re keeping an eye on the critical polarity zone marked by last year’s June highs and December lows.
Whether the 10-year yield (TNX) undercuts these former highs or digs in and catches higher could have broad market implications.
If it rolls over, long-duration assets could continue to rise. Such an environment would be favorable for growth stocks and other risk assets.
On the other hand, more losses could lie ahead for risk assets if yields turn higher. Bonds would resume their ongoing structural downtrend, while the bottoming process for major U.S. equity benchmarks could be delayed.
Remember: Sideways is always an option for yields. It’s what we’re experiencing today, and stock market investors seem to like it.
3/ Mexican Equities Break Out
International equity markets have soared since bottoming out late last year. Whether you look at emerging markets or developed markets, they have one factor in common: new highs.
The iShares MSCI Mexico ETF (EWW) does a great job of illustrating the recent strength overseas.
As you can see, price has been carving out a rounding bottom formation for the past seven years. More recently, buyers have taken control and sent prices to their highest level since 2015.
Seeing more and more countries resolving higher provides more bullish evidence that could point to a new uptrend for international equities in general.
4/ Grains Remain Elevated
As impressive as copper, gold, and silver have been in recent months, it’s hard to ignore the buoyancy of other more obscure commodity contracts.
Here is a chart of Kansas City wheat futures:
This contract represents the most common wheat variety grown in the United States. Despite weakness among commodity indexes, wheat futures appear to be carving out a tradeable low.
An upside resolution from current levels would be another bullish indicator for the commodities space.
The bottom line is that it’s hard to consider a bearish thesis for commodities when most contracts remain elevated and refuse to break down. Wheat futures provide an excellent example.
—
Originally posted 26th January 2023
Disclosure: Investopedia
Investopedia.com: The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment or strategy. This information is intended for US residents only.
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Investopedia and is being posted with its permission. The views expressed in this material are solely those of the author and/or Investopedia and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Disclosure: ETFs
Any discussion or mention of an ETF is not to be construed as recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Disclosure: Futures Trading
Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading futures, please read the CFTC Risk Disclosure. A copy and additional information are available at ibkr.com.
