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Market News Posted by Team Topstep February 3, 2021

The Chop Continues But Crude Keeps On The Move

Equity index markets remained choppy Wednesday ahead of more earnings reports due Thursday, and of course, Friday’s jobs report. As stocks traded flat, Crude Oil shot up to new 11-month highs after the EIA reported an inventory draw of 1 million barrels for last week. The EIA report came on the heels of Tuesday’s API estimates showing that crude oil inventories have been falling. 


  1. Stocks close relatively flat; Dow +0.19%, S&P +0.17%, Nasdaq +0.07%
  2. Biden stands firm behind $1,400 stimulus checks
  3. Crude Oil prices spike to a new 11-month high 

Recap Video

Economic Calendar for Thursday, February 4
  • Challenger Job-Cut Report 6:30 AM CT
  • Jobless Claims 7:30 AM CT
  • Productivity and Costs 7:30 AM CT
  • Factory Orders 9:00 AM CT
  • EIA Natural Gas Report 9:30 AM CT
  • Fed Balance Sheet & Money Supply 3:30 PM CT

Wednesday’s Headlines

Ethereum Sets A New All-Time High

FRNT Financial

“Ethereum (ETH) has set a new all-time high with a break above its previous record of about USD 1,440. The move comes on the back of highs in other associated metrics such as record weekly transaction count, but also coincides with the network’s risky transition to ETH 2.0.”

Oil Prices Surge To New 11-Month Highs As Global Oil Supplies Are Projected To Be In Deficit In 2021

The Phil Flynn Energy Report

“Oil prices are surging to new 11-month highs as global oil supplies are projected to be in deficit in 2021, according to OPEC+. The Energy Report readers know that we’ve been projecting the same, as historic cuts in production, a massive pullback in oil and gas investment, and demand that’s already recovered to provide levels in China and India will suck down supply.”

Amazon and Alphabet Stocks Are Up After Releasing Q4 Earnings Reports

Blue Line Futures

“The stocks go marching 2 by 2, hurrah, hurrah! Overnight, the Nasdaq traded within 15 points, or 1/10 of 1% (11 basis points) from its record, and the S&P half of 1%. Those short spurts of panic late last week and Sunday night have allowed the market’s profile to refresh, creating a new sense of enthusiasm. In fact, the market is right back to focusing on news through a glass-half-full lens.”

Bezos Steps Down As CEO, What Does This Mean For Amazon?

Anthony Cheung

“Each day on the European market opening, Anthony Cheung and Amplify Trading gets you prepared for the trading day. Amplify Trading focuses on relevant macroeconomic insights, trade idea generation, and trader development for global macro futures and forex traders.”

Chart of the Day

Head & Shoulders Top In The Euro

Euro Head and Shoulders Top Pattern

The Head & Shoulders Pattern (H&S) is historically considered one of the most reliable major reversal patterns in technical analysis. Like most reversal patterns, the H&S is most recognizable to an analyst after it has been formed. The real trick lies in identifying the attributes of the formation while it’s setting up so you can be ready to initiate a position once the pattern is confirmed.

First and foremost, to be considered a reversal pattern, an H&S top must be preceded by an uptrend. The same as with most other volume and time play just as significant a role as price while this pattern is forming.

Learn more about the Head & Shoulder pattern, including trade entry and exit points, stop levels, and measured move objectives here.

Trade Well!