See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week free trial to Bespoke Premium. CLICK HERE to learn more and start your free trial.
“Short cuts make long delays.“ – J.R.R. Tolkien
When futures opened for trading last night, it was looking like January’s end of month weakness was going to continue right into the start of February. After the opening weakness, dip buyers stepped up in full force turning a weak start to the month into a strong one. Across the globe, equities are rallying, and strangely enough, GameStop (GME) shares are basically flat on the day!
Economic data is relatively quiet this morning with ISM Manufacturing and Construction Spending at 10 AM eastern. Both reports are expected to show a modest decline from last month’s pace of growth but are still expected to be positive.
We’d also be remiss not to mention the spike in silver this morning as Reddit traders are moving on from equities that investors have always loved to hate to silver – one of the least respected of the precious metals. In early trading, silver is up over 10% to its highest levels since 2013.
Be sure to check out today’s Morning Lineup for updates on the latest market news and events, earnings reports from around the world, economic data out of Europe, an update on the latest national and international COVID trends, and much more.
After a weak close to January, the S&P 500 ended at its lows of the month on Friday. That decline was also notable for the fact that it was the first time since the Election that the S&P 500 closed below its 50-day moving average and ended a streak of 58 straight trading days above that level.
At 58 trading days, the most recent streak of closes above the 50-DMA for the S&P 500 was a relatively long one but nothing extreme by historical standards. In the last 10 years alone, there have been 12 streaks of longer duration including the 102 trading day streak coming out of the COVID lows. In other words, while the S&P 500’s post-election rally has ended, it doesn’t necessarily mean the market is in for an extended period of market weakness either. Without pullbacks, there wouldn’t be rallies.