Daily Market News Round Up

Daily Market News

29th Sept 2021

29th September 2021

Natural Gas

Has the parabolic rocket ship known as Natty Gas finally topped out at the February 2014 Highs? After declining 4% today, the data would suggest we’ve hit a near term top. It’s been an incredible run with some individual names aligned with Natty Gas (AR - Antero Resources has been huge) sky rocketing. Is it time for some digestion?

Probably.

Oil and Energy

With many analysts calling for $100 a barrel, the chart for Crude Oil Futures show that the $76 level would be a key area for price to rise and for the three figure a barrel thesis to play out.

Energy as a sector has been 1 of the top performing sectors in the S&P500 on a YTD basis with XOP +65% and XLE +39%

It’s no surprise as Oil has been 1 of the top performing commodities YTD with a 55% gain.

With many consumers already reeling from higher energy costs, is it possible that it’s only going to get worse or will we see Oil top out at $76 in the near term?

YouTube Censorship & Google

With vaccine misinformation and censorship being such a hot topic with the banning of accounts / channels, figuring out what it all means for the Google stock price is next to impossible. If we take a look at the chart for GOOG, the chart met our upside objective a few weeks ago after a strong period of out performance and while the censorship debate rages on, it would make sense to me that waiting for a significant pull back in the stock price is more favourable than chasing the stock at key Resistance levels.

Ethereum vs Bitcoin

As a believer in both and where they’re headed, I’m asked all the time, which is better to own… my response… why not both?

The performance of Ethereum (+1554%) against Bitcoin (+409%) over the last 2 years is nothing short of astonishing and is very difficult to turn a blind eye to. The chart for Ethereum is showing that we’re potentially setting up for a break out on both an absolute and a relative basis and in my world, that makes things very very bullish for Ethereum and the technology in which it’s built on.

As always, price will need to confirm the move for the thesis to play out.

Overall Market Health - Discretionary vs Staples

I posted the below chart to social media a few days ago and if you’re not aware of the relationship between Consumer Discretionary and Staples, let me throw it out there that if this chart resolves higher, it’s generally a highly bullish signal for the market.

That said, if we see the major averages break below key support levels, the weighting given to the below chart would be minimal. Capital preservation becomes my priority when key market levels break.

If you enjoyed the brief 2min read, feel free to let me know if it’s something you’d welcome on a more regular basis.