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January 12, 2021

Traders feel some sense of normalcy? Silver: +2.29%

Democrats begin to push, to force Trump from office

Democrats begin to push, to force Trump from office

In a headline that could have been written at almost any time over the last four years, the Democrats have begun another push to drive President Trump from office, despite the fact that the last day of his term is roughly 10 days from now. While you will read and hear a lot of news about these headlines, at this point in time, it is essentially a moot point, and simple grandstanding. This can be seen in markets that have not budged much, even as people were storming the Capitol building in Washington DC.

As a side note, the headline has just crossed the wire that the House Republicans have blocked an effort to bring up the 25th Amendment resolution brought up by the Democrats, which is to remove a president from power who is not mentally or ethically fit to serve. The idea is that VP Mike Pence would act as president over the remainder of the term. At this point in time, it should be looked at through the prism of political gamesmanship.

Twitter hammered after dumping Trump

Twitter hammered after dumping Trump

In an action involving Donald Trump that actually could have ramifications, Twitter has lost almost $5 billion of its market value during the trading session on Monday. This comes as Donald Trump was ejected from the platform in a move some say goes against free speech. Donald Trump had 88 million followers, and investors are now starting to worry about a wave of potential social media regulations. This follows both Amazon cloud services and Apple both simultaneously attacking Parler, an app that functions very much like Twitter, but prides itself on free speech. At this point, one can easily see that there is a lot of angst building when it comes to social media companies, and it very well could be the beginning of a shift in attitudes towards these companies.

Bitcoin discovers gravity

Bitcoin discovers gravity

Bitcoin has been hammered during the trading session on Monday, dropping 19% by the time New York came to work. The fall came as rising US yields have lifted the US dollar, but the market had been completely overbought, showing signs of bubble behaviour yet again. With that being the case, most Bitcoin believers look at this as a potential buying opportunity again, but at the same time, this shows just how overblown the market has become. Ethereum was down 23% simultaneously, as blanket losses were seen all across the cryptocurrency world.

Speculators increase bullish bets on COMEX gold and silver

Speculators increase bullish bets on COMEX gold and silver

Speculators have increased their bullish bets on both gold and silver in the COMEX markets, as futures traders have seen the massive pullback as of late showing a possibility of value. Simultaneously, the strengthening US dollar does put a bit of pressure on the metal sector, but it is being used as a potential safe haven again now that Bitcoin has given up some of the gains it has recently enjoyed.

Global Equity Markets

Global Equity Markets

Stock markets were a bit negative during the session on Monday, as traders came back from the weekend. There are a lot of issues out there that people are digesting, so it makes sense that a short-term pullback appears in several of these indices. The FTSE lost 95 basis points, while the DAX lost 89. The French lost 86 basis points, while at midday in the United States the S&P 500 was down ½%. The Nikkei was closed due to a bank holiday in Japan.

Index Change
FTSE100

FTSE100

-0.95

DAX

DAX

-0.89

CAC40

CAC40

-0.86

Nikkei 225

Nikkei 225

0

S&P 500

S&P 500

-0.50

Currencies

Currencies

Currency traders were a bit “risk-off” during the session on Monday, as the US dollar was due for a bounce from an oversold position. The Euro lost a little over half of a per cent, just as the British pound did. The greenback gained against the Yen, at roughly 1/3 of a per cent. The biggest loser by far was the Aussie, as it dropped over 1% for the day. It should be noted that the ‘anti-dollar’ scenario and trend is very much intact.

Index Change
EUR/USD

EUR/USD

-0.5801

GBP/USD

GBP/USD

-0.5788

USD/JPY

USD/JPY

0.3425

AUD/USD

AUD/USD

-1.0011

Commodities

Commodities

Commodity traders also showed a certain amount of ‘risk-off’ as well, as the only real winners were the precious metals markets. The big winner was silver, gaining 2.29%, followed closely by gold which was up 2/3%. The Brent market dropped a bit, but still looks very well-supported. The platinum markets were hammered, losing almost 4%, and copper was down 2.63%.

Index Change
Gold

Gold

0.66

Silver

Silver

2.29

Brent

Brent

-0.64

Platinum

Platinum

-3.91

Copper

Copper

-2.63

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