Free Trade Ideas

Welcome to Tuesday’s action! Business is picking up on Wall Street, with US stocks moving lower to kick off post-MLK Day trade. In this week’s Switch On: Hot Picks, we covered the potential for strife in equities as measured by the CBOE Volatility Index (VIX). At this hour, the VIX is trading near 18.75. This represents an 18.5% GAP Up from Friday’s close (15.86). You can check out Switch On: Hot Picks here: https://youtu.be/n7bnpLmrWpU A rising VIX signals that bearish sentiment is creeping into US large-cap stocks. This is what’s currently being reported by the mainstream financial media. However, it’s important to note that the VIX remains below the long-term average, which is around 21.00. We’ll be watching the VIX closely as the week unfolds.
Today features a vacant economic calendar. But, global geopolitics continues to rule the day. CNBC is reporting that the “Sell America Trade” is dominating the action. To be honest, that’s the first time I’ve heard the term “Sell America Trade.” Essentially, it describes an investor exodus from US-centric investments. US Treasury prices are down, the USD Index (DXY) is on the bear, as are us equities. Conversely, precious metals are up, as are energy commodities. We’ll take a deep dive into this concept at the US Mid-Session Brief at 1:00 PM EST on Switch Markets' YouTube channel (https://www.youtube.com/@switchmarkets/featured). Here’s a vital zone worth watching in the XAU/USD:
Big Round Number: 5,000
Reference our Key Levels for more information on this Trade Idea.
Greenland, Iran, and Venezuela are weighing heavily on these markets. Civil unrest in the United States is also a factor, with Trump mulling over invoking the Insurrection Act. There’s a lot to unpack, we’ll do the work at 1:00 PM EST…see you there!