Markets Trade Sideways Ahead of Earnings and Fed Meeting

Futures markets traded relatively sideways Monday ahead of the Fed’s two-day economic policy meeting and expected earnings from some big names like Microsoft, Alphabet, Visa, Texas Instruments, Starbucks, GM, etc.

Quick-Takes

1. In a call to President Modi of India, President Biden has promised ‘emergency assistance in response to a surge in Covid-19 cases.
2. Census numbers are out, and it looks like Texas is going to pick up the most new House seats ahead of the 2022 midterm elections.
3. President Biden will propose a capital gains tax increase for individuals who make over $1 million.
4. The two-day FOMC meeting kicks off Tuesday.
5. The U.S. will likely release 60 million doses of the AstraZeneca Covid-19 vaccine to the rest of the world.

Recap Video

Our Favorite Headlines

India’s Covid-19 Crisis May Cause OPEC+ To Cut Back Oil Production

The Phil Flynn Energy Report 

India’s Covid-19 nightmare impacts oil prices and may cause OPEC+ to cut back production of oil instead of standing pat. The tales of human suffering from India are heartbreaking, and hospitals turn patients away as new cases of Covid-19 are breaking records.

3 Simple Ways To Invest In Your Emotional Capital

Trades By Matt

Emotional capital: a required yet rarely-perfected resource that every trader must manage to be successful. Think of emotional capital as the psychological or mental assets you hold. How do you think they affect the trades you’re in.

75% of stock owners won’t be subject to Biden’s proposed capital gains tax hike. Here’s why

Greg Iacurci – CNBC.com

Roughly 75% of U.S. stock investors wouldn’t be subject to an increase in the capital gains tax rate due to the types of accounts they own, according to UBS.

Economic Calendar for Tuesday, April 27

• FOMC Meeting Begins
• Redbook – 7:55 AM CT
• Case-Shiller Home Price Index – 8:00 AM CT
• FHFA House Price Index – 8:00 AM CT
• Consumer Confidence – 9:00 AM CT
• Richmond Fed Manufacturing Index – 9:00 AM CT
• Money Supply – 12:00 PM CT

Chart-of-the-Day

Crude Oil Prices Continue To Contract

Since early March, crude oil futures prices have been contracting and forming what looks to be a textbook Symmetrical Triangle pattern. Analysts typically consider symmetrical triangles to be trend continuation patterns, so with the recent underlying trend pointing higher, we would expect to see a breakout to the upside. While a test of the lower trendline in the daily chart above would be healthy for confirmation of the pattern, it is not necessary. 

A lot is going on in the world right now that’s affecting the price of crude oil. So, it’s essential to keep an eye on the news for any fundamental factors that could potentially reinforce your technical analysis of this market.