Nasdaq Drives Higher as Tech Bulls Cheer Micron
Nasdaq Drives Higher as Tech Bulls Cheer Micron
Also 30-year T-bond, silver, natural gas and British pound futures
- Nasdaq 100 E-mini futures (/NQ): +0.96
- 30-year T-bond futures (/ZB): +0.42%
- Silver futures (/SI): +1.88%
- Natural gas futures (/NG): -1.03%
- British pound futures (/6B): -0.47%
Global equity markets followed the mood of yesterday’s post-Federal Open Market Committee (FOMC), with European equity markets moving higher overnight.
Equity futures pointed to higher opens this morning, with traders moving past the major event risk that was the Federal Reserve, which gave a green light to equity bulls by sticking to three rate cuts for the year.
An impressive earnings announcement from Micron (MU) supercharged sentiment this morning and pushed technology stocks higher to lead the pack.
Symbol: Equities | Daily Change |
/ESM4 | +0.49% |
/NQM4 | +0.96% |
/RTYM4 | +0.47% |
/YMM4 | -0.39% |
Nasdaq futures (/NQM4) led equity markets higher this morning as traders doubled down on bullish market bets after taking a breather before yesterday’s Federal Reserve interest rate decision.
Technology stocks received a bullish signal from the chip sector, with Micron (MU) up nearly 20% in pre-market trading after the chip maker announced stellar earnings numbers along with rosy guidance driven by the outlook for artificial intelligence.
Strategy: (40DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 18,300 p Short 18,400 p Short 18,900 c Long 19,000 c | 23% | +1,495 | -505 |
Short Strangle | Short 18,400 p Short 18,900 c | 53% | +11,160 | x |
Short Put Vertical | Long 18,300 p Short 18,400 p | 63% | +680 | -1,320 |
Symbol: Bonds | Daily Change |
/ZTM4 | -0.01% |
/ZFM4 | +0.04% |
/ZNM4 | +0.11% |
/ZBM4 | +0.42% |
/UBM4 | +0.49% |
Bonds are rising along the middle- and long-end of the curve despite the Fed increasing its growth and inflation forecasts in yesterday’s summary of economic projections (SEP), with markets taking it as an overall dovish announcement. The 30-year yield remains near its February highs. The Treasury will auction 10-year TIPS today.
Strategy (36DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 117 p Short 118 p Short 120 c Long 121 c | 31% | +703.13 | -296.88 |
Short Strangle | Short 118 p Short 120 c | 56% | +2,250 | x |
Short Put Vertical | Long 117 p Short 118 p | 69% | +312.50 | -687.50 |
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Symbol: Metals | Daily Change |
/GCJ4 | +2.19% |
/SIK4 | +1.88% |
/HGK4 | +0.88% |
A still-dovish outlook from the Federal Reserve has opened the door for more upside from the precious metals, with gold futures (/GCJ4) and (/SIK4) both putting in strong gains for the day.
Gold prices rose above 2,200 and silver flirted with the 26 level, the highest traded since December. With the major event risk out of the way for the week, the prevailing bullish trend may carry these metals higher into the weekend.
Strategy (35DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 25.1 p Short 25.15 p Short 26.1 c Long 26.15 c | 19% | +200 | -50 |
Short Strangle | Short 25.1 p Short 26.1 c | 54% | +5,435 | x |
Short Put Vertical | Long 25.1 p Short 25.15 p | 57% | +125 | -125 |
Symbol: Energy | Daily Change |
/CLK4 | -0.32% |
/HOK4 | -1.11% |
/NGK4 | -1.03% |
/RBK4 | -0.44% |
Natural gas prices (/NGK4) continue to struggle around the lowest levels traded in nearly four years. Now, with the northern hemisphere coming out of its winter season—spring officially started this week—it looks like bears can claim victory, with prices unlikely to rise due to fundamental conditions over the coming months. Today, the Energy Information Administration (EIA) will report natural gas stocks for the week ending March 15.
Strategy (35DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 1.7 p Short 1.75 p Short 1.95 c Long 2 c | 27% | +350 | -170 |
Short Strangle | Short 1.75 p Short 1.95 c | 53% | +1,730 | x |
Short Put Vertical | Long 1.7 p Short 1.75 p | 57% | +190 | -310 |
Symbol: FX | Daily Change |
/6AH4 | +0.26% |
/6BH4 | -0.47% |
/6CH4 | -0.17% |
/6EH4 | -0.16% |
/6JH4 | -0.37% |
The British Pound dropped overnight after several Bank of England (BOE) members made a dovish shift from their view for a higher inflation rate environment, seemingly capitulating to the dovish camp. The Federal Reserve’s relatively dovish stance likely influenced the change of tune from those members, but it did no favors to the British pound.
Strategy (45DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 0.00665 p Short 0.0067 p Short 0.0068 c Long 0.00685 c | 33% | +400 | -225 |
Short Strangle | Short 0.0067 p Short 0.0068 p | 56% | +1,230 | x |
Short Put Vertical | Long 0.00665 p Short 0.0067 p | 69% | +250 | -375 |
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
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