Morning Markets: Friday Jan 14th, 2021
Gold Bullish Structure, JPM Released earnings this morning
Housekeeping: Some good 3rd party reports for Equity 401k allocators will be included in the Premium report this weekend. Michael Moor will join us on Sunday to discuss trading levels foractive traders.
Morning Rundown
Good morning. Retail sales this morning. Most markets are gyrating around unchanged with Stocks picking a lower direction in the last 15 minutes. The Dollar is unchanged. Bonds are weaker again. Gold is unchanged. Silver and base metals are down. Oil was up over a $1.00 but is now up only 40 cents. This may be all because of JPM earnings ( see below) missing low.
GoldFix Podcast
Gold Bullish Structure now in play above $1801
Guidance
JPM Released earnings this morning and shares are down 3% as of this writing
From their note:
PM Fixed Income Markets revenue of $3.3B, was down 16% YoY, "driven by a challenging trading environment in Rates, as well as lower revenues in Credit and Currencies & Emerging Markets compared to a strong prior year"
Here’s What Bloomberg said before the report came out:
JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. all report before the bell this morning with Wall Street banks facing sky-high expectations ahead of fourth-quarter earnings season. Shares in the sector, as measured by the KBW Bank Index, returned more than 50% since the start of 2021, with Wells Fargo adding 17% this month alone. The surge in shares in recent weeks has been driven by the prospect of rising rates and expectations of accelerated loan growth. Federal Reserve data compiled by Bloomberg showed that loans at the 25 largest U.S. banks were 3.5% higher in December than a year earlier. - Bloomberg
Zen Moment
Bear market buddy
Report
The biggest headwind for commodities in 2022 is the 2021 rally, if history is a guide. Crude oil has the most significant macroeconomic implications, and we expect price resistance similar to copper and corn (notably after the financial crisis). A conundrum facing crude bulls is that copper may have peaked. The metal typically outperforms.
