Market On Open - Tuesday 2 April

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First, A Word Of Thanks

by Alex King

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Now For The Strange Color On The Screen Today



This must be it! Ye Ende of Dayes!!! RUN!!!! SELL EVERYTHING!!!!

Well, maybe.

Bull markets are allowed to have down days too, and until proven otherwise we remain in an up-market. The key charts that I personally am focused on are the short-term S&P500 and short-term Nasdaq-100. If we see meaningful drops in those - specifically if the 2021 all time highs give way - then we have a changed market on our hands and it's going to be time to wind on the short hedges. Until then, I remain fearful of trapped shorts in what I think is likely a full-on bull in the S&P and the Nasdaq, so for myself I am under-reacting on days like today. I cashed minor gains in UCO (2x long US crude oil) and TMV (3x short treasuries) earlier as both looked like they may go green to red. I also added to UPRO (3x long S&P500), as Inner Circle subscribers will have seen before the fact in Slack alerts. If we get a bad equity close today, by which I mean the S&P500 and/or the Nasdaq-100 closing around or below the day's lows, then we may be looking at a multiday correction. Again, something to react to in my view, not to anticipate and predict.

Anyway, let’s check in on our usual charts - we cover the US 10-year yield, the S&P500 in three incarnations (SPY, ES, UPRO), Nasdaq, the Dow and the Russell ditto (unlevered ETF, futures and 3x leveraged ETFs in each case) - plus some sector-specific levered and unlevered ETFs. We do this daily for our paying members here, whether you are a member of the Inner Circle or our Market Insight membership tiers.

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Short- And Medium-Term Market Analysis