Market On Open, Monday 24 November
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Dare To Dream
by Alex King, CEO, Cestrian Capital Research, Inc
Friday’s closing and early trading today is showing a fragile recovery in equities, bonds and crypto. For now this is just a relief rally. As a simple rule of thumb after such declines - modest declines in the indices, much more significant in crypto and high-beta stocks - it’s good to see the big stocks and indices close up and over the short-term moving averages, capturing them sequentially in a rally if it can sustain.
At the time of writing, $SPY is up and over its 8-day moving average in the first half hour of regular trading hours. Interesting but not compelling; a close over the 8 day starts to build evidence of a real recovery. The Russell 2000, would you believe, is leading the way up, with $IWM up and over its 8-day and pushing up at the 21-day EMA from below.
$SPY At The 8-Day SMA
$IWM Approaching The 21-day EMA
Today’s close is a really important close; it will tell us whether we’re likely to see a rally into Thanksgiving and on to year end, or just continued chop in the indices and weakness in the risky names.
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OK. Let’s get to work - our daily Market On Open note below covers yields, bonds, equity indices, sectors, oil, gold, Ether, Bitcoin and more, as always.