Markets are in rally mode this morning, ahead of Chair Yellen’s testimony. It’s a bit of a risk for buyers, since Yellen has done nothing to indicate a stubbornness and wanton disregard for markets or sentiment, ever since becoming Chair.
Nevertheless, the stage is set for what looks like an explosive move to the upside.
First and foremost, DB is sharply higher. This is the poster child for distressed banks. It needs to rally fast and furious.
Check.
Oil is higher.
Check.
Gold is lower. There can be no arks or safe haven rallies, if equities are gonna bounce.
Check.
The ark is taking on some water. It may need to come in for some repairs.
Check.
NASDAQ futures are sharply higher.
All Yellen has to do now is sound rational by acknowledging current risks and the market will go on a two week 10% rippage to the upside.
If she fails to please, we’ll descend into anarchy.
Happy trading.
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Profitable trading during the pre market this week. Happens every so often.