Rates, Financials Holding Steady - Weekend Macro Press

Key Tactical Takeaways:

> As the conditions surrounding the climb in copper and commodities currencies grow more-and-more extended, vulnerability to mean reversion is increasing.

> So far, the 5-Y, 5-Y Forward Rate is holding the levels needed for its December breakout to lead to higher highs into early 2021. This remains the case against 1.92%.

> Now that USO has reached our next obstacle at 33.70, the best pace of upside acceleration is likely nearing its end. Pending a close < 32.03, however, the prevailing uptrend remains firmly in pace.

> With the $ having completed 5 waves down from the 11/02 high to a measured target of 89.71, the potential for a reflexive rebound exists. Pending a close > 90.82, however, any bounce will be trivial.

Market Outlook: Just when it looked like investors were gaining clarity over a number of key market influences, quadruple witching and the impending inclusion of Tesla in the S&P 500 brought some elusive volatility to risk assets on Friday. The impact of Friday’s quadruple witching should now be...