Market Report Mar 05 2021

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Market Report for Mar 05 2021

Successful traders need considerable will power to keep from following the herd.

Market Trend:

Market YTD:
Russell 2000 +8.7% YTD
Dow Jones Industrial Average +1.0% YTD
S&P 500 +0.3% YTD
Nasdaq Composite -1.3% YTD

Market Volume:
NYSE Vol: 1.5 bln (A)
Nasdaq Vol: 7.7 bln (A)

New Swing Positions:

The S&P 500 closes below 50MA while Nasdaq Composite undercuts the previous low that undercut the 50MA. The last 6 days volume has been below the average but yesterday moved up that level.

NFP is out today so expect volatility, panic and noise. The outcome of this will give us more information on how to manage our positions at the weekend.

After Jerome Powell’s comments yesterday, he provided no indication that the central bank will look to address the recent rise in Treasury yields. This then saw them rise even further. In six months the 10 Year has risen from 0.55 to 1.55. This is the highest level since the COVID crash last year.

10 Year Treasury Note Mar 05 2021

This is a concern as it has an influence on consumer and business borrowing costs. Level 3 will recall from the webinars last year that as borrowing was so cheap, it is logical for a business to take on debt. That will no longer be the case.

Further to last weekends webinar, the meeting over Crude oil output took place yesterday as the Russian coalition kept most of their production cuts as they were.

As it is NFP day, go and enjoy the prekend.

Let’s go trade!