Gasoline On Sale as Price Dips Below $5 with Nick Santiago 7-18-22 #409

Source:
https://www.spreaker.com/user/appeal2/nick-409

1. Markets are trying to rally again to start the week. These markets are a bit overbought in the near term after staging a rally last Friday. So far, the S&P 500 Index has held the lows made on June 17th. This is still a market that must be traded a day at a time. 

Oil is also strong this morning trading higher by 4.5% to 102.00 a barrel. I'm not sure that is a positive in the bigger picture, but the market seems ok with it right now.  

2. Bond yields are actually slightly higher today. The 10-year note yield is up by 6 basis points to 2.993%. The 2-year note is 3 basis points to 3.17%. Just so everyone is aware, we have an inverted yield curve between 2's and 10's and that will likely be problematic down the road a little. Almost every time this has happened it has led to a recession. 

3. Gold is finally catching a bid from a very oversold condition. Short term a bounce is due for teh precious metal, the bigger picture still looks weak.   

4. Bitcoin is trading back above the psychological 20,000 level. In fact, it's higher by 5% today to 22,000 which is a very good move up. Short term it lives to fight another day, but.remember, the bigger time frame pattern is bearish, so after this bounce it is vulnerable to decline again, I'm expecting it to test the 13,500 area before finding a decent low.