It's FOMC Day
Michael Ballanger of GGM Advisory Inc. shares his thoughts on the current state of the market.
USD Index futures are up 0.29% to 104.674 with the 10-yr. yield (-1.50%) lower to 4.277% and the 10-yr. yield (-1.78%) lower to 4.463%.
Metals are lower across the board with gold (-0.45%), down $12.30, silver (-0.74%) down $0.235 and copper (-2.38%) down $.1055. Oil is off 2.83% to $70.31. Stocks are mixed with the DJIA (+0.42%) and S&P 500 (-0.2%) high but the NASDAQ (-0.21%) lower. Risk barometer Bitcoin is to 1.33% to another record high at $75,867.
Stocks
Yesterday, the FOMC lowered the Fed Funds rate by 0.25% to 4.5% taking the S&P 500 up 44 points to another record close at 5,973.10. Pundits are all targeting 6,000 as a projected resistance level while "Dow 50,000" baseball caps are now flourishing on Wall Street.
I took no action yesterday except raising the stop-loss on Invesco QQQ ETF (QQQ:NASDAQ) to $510.00. I am looking for a downside reversal later today in order to buy back the QQQ Dec 4525 calls.
TLT:US
I own 1000 iShares 20+ Year Treasury Bond ETF (TLT:US) from $91.00 but missed adding to the TLT December $90 calls at $2.25 yesterday with it closing at $2.69. The calls are $3.43 this morning so our 25 contract position is recovering quickly. I am still going to add but will pay no higher than $3.00 good through the close of trading today.
Metals
Gold and silver are mixed this morning with gold and silver giving up a third of yesterday's rebounds off the lows seen on Wednesday's election result reactions. I am long iShares Silver Trust (ETF) (SLV:NYSE) and the November and December calls but want to emphasize that silver is not acting as it should. If it was going to dominate the speculative landscape, the recent breakout above $33.00 should have resulted in it achieving "escape velocity" but it has instead reversed and fallen back below the breakout point. I am very close to abandoning this trade once again and swearing off silver for the rest of my days.
Hold.
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Important Disclosures:
Michael Ballanger: I, or members of my immediate household or family, own securities of: All. I determined which companies would be included in this article based on my research and understanding of the sector.Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
Michael Ballanger Disclosures
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.