Nov 7: A new week

By Jeffrey Cohen
US Advanced Computing Infrastructure, Inc.

Good morning!

Today went from red to green in the US equity futures. The US Equity Futures are drifting back to a flat (to up) open.  There is movement in our CQNS Long (or up) model portfolio this morning, as stocks prices (but not volume) look like they have done a day's trading...and all by 7:34am CT (or about an hour before market open). 

Pre-market for a few select industry groups:

• Regional banks up
• Energy up
• Money Managers up
• Retail up
• Chips and Semiconductors (mostly up)
• Trucking, Transport & Logistics (mostly up)
• B2B & Retail Technology (mostly up)

The Vix is red (which means lower cost of protection), and bonds are trading this morning mixed and higher. Energy is down, and the US Dollar is weaker. Seems like a great setup for US equities to rise.

However, while we were watching the Level 2 order book in Nasdaq (all exchanges) for $SPY, we saw a big trade go through. Nothing dramatic, but about 29,000 shares were sold in one order. This reminded me that there are forces moving the equity markets up, and there are opposite (but not quite equal) forces moving them down.

Crypto, especially Bitcoin, has been range bound for months. BTC/USD is trading now at $20.8, which is around the $20k mark. 

Currencies are setting into a trading range as well, with the Euro at $0.9993, GBP at $1.1472.  It takes 146.19 Japanese Yen to buy a US Dollar, and it takes 1.3468 Canadian Dollars to buy a US Dollar as well. 

In terms of overall market breadth, on Friday there were 67% advancers and 28% decliners, and ~ 3:1 new low to new high ratio (437 lows to 155 highs).

For US Corporate Bonds, the the A/D ratio was similar, but there were many more new lows than highs. There were 5,024 advancers to 3,584 decliners, and there were 631 new lows and 38 new highs, for a ratio of (17:1).

Good luck today.