Risk Appetite Still Firm As $ Strengthens - Morning Market Squeeze

Key Tactical Takeaways:

> The all-important growth vs. value ratio broke down into the next leg of growth underperformance last Thursday. While this lack of bearish follow-through is still far from being considered a ..., we do have to keep a close eye for ...

> While the euphoria is palpable, we simply are not seeing ...

> Gold futures are indicating that .... A close > ... is needed to confirm ...

> If the 10-Yr's recent "pennant" is going to produce the next, potentially aggressive, leg of higher rates without a more complex corrective price rebound to between ... first occurring, ...% is the area from where sellers need to take a stand in very short order (in the next 24-48 hours).

> We will be adding a new energy name (...) at the open.

Some Quick Thoughts:

As a reminder, we entered a long position in the dollar earlier this month as a neutral-to-bullish, theta decay idea. So far, the trajectory has not disappointed. Now, after former Fed Chair Yellen ran into Republican resistance to the $1.9 trillion relief plan during her confirmation hearing in the Senate yesterday, the remains on track for a run-in with massively-important resistance at DXY .... Although both crude oil and the S&P 500 have seen their higher trends decelerate as the dollar has been backing-and-filling rather stealthily in January, they, too, have only witnessed shallow corrections.

Netflix Inc. is soaring in premarket trading (+14%) after the company announced that it had added more subscribers than expected and would no longer need to borrow money to build its entertainment empire. While this is helping to lift the spirits of the rest of the FAANG stocks this morning, only NFLX and GOOG appear to have the trend strength to benefit from this boost over the near-term, as AMZN AAPL and FB are all in more bearish near-term trends that will require a lot more work to be reversed.

While equity euphoria is palpable, we simply do not see .... In addition, IWM is using former volatility-based resistance as support as the 10-Yr Treasury contract appears to be nearing the end of a "bear flag" that could conclude soon with a burst to new yield highs. While this action is all very supportive of risk and cyclicality, we reiterate that the best opportunities in equities, by far, are in .... We will be adding a new energy name (...) at the open.

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