In a prime-time address, President Biden says all adults should be able to receive at least one vaccination by the end of May and suggest things might get back to normal by the 4^th of July.  The market enjoyed a strong bullish run yesterday as investors celebrated the signing of the stimulus bill and the softening bond yields.  Though we made the record books in the DIA, SPY, and IWM, the QQQ still has the overhead resistance of its 50-day average to overcome.  Though we have a light day of earnings and economic reports, those pesky bond yields are creeping up with the 10-year back at 1.6%.

Overnight Asian markets closed mixed but mostly higher as the NIKKEI surged 1.73%.  However, with bond yield climbing again, European indexes trade with modest losses across the board this morning.  U.S. futures traded mixed coming off of overnight lows, trying to ignore bond yields and inspire more buying.  This week experienced a fantastic bullish party extending the indexes, but one has to wonder if there is a nasty hangover just around the corner as bond yields creep higher.  Plan carefully heading into the weekend.

Economic Calendar

Earnings Calendar

We have a lighter day on the Friday earnings calendar with just 31 companies stepping up to report.  Notable reports include BKE, KIRK, & NOG.

News & Technicals’

In a prime-time address, President Biden will direct states to make all adults receive at least one vaccination by the end of May.  Unfortunately, more countries have suspended the AstraZeneca vaccine due to rising issues of blood clots.  The U.S. has not suspended its use so far.  Although fear declined with successful 10 and 30-year bond auctions this week, the yeild is again topping 1.6% this morning.  After signing the 1.9 Trillion bill, the White House says stimulus checks could start showing up in bank accounts as soon as this weekend assuming you use direct deposit.  New York Governor Cuomo’s pressure continues to grow with calls for him to resign and an impeachment probe picking up steam. 

Another day and more records highs for the indexes as the DIA, SPY & IWM bulls celebrate the next round of stimulus.  The QQQ also enjoyed a nice rally with big tech finding buyers, but it still must deal with its 50-day average that may yet serve as overhead resistance.  The VIX continues to weaken though tenaciously holding above a 20 handle.  The four-week new high/new low ratio indicator signifies an extremely overbought short-term condition in the indexes, so be careful not to chase this late in the rally.  With the bond rates popping back up this morning, it may be a good day to take some profits heading into the weekend.

Trade Wisely,

Doug