(DAILY NOTION): Wall Street Tries to Find a Firm Footing in a Historical Week, Next Mover: Biden’s inauguration, Earnings Report

NASDAQ 100 Futures (as of Jan 19, 2021 at 2.55 p.m.)

Source: Business Insider

SPX 500 Futures (as of Jan 19, 2021 at 2.55 p.m.)

Source: Business Insider

US30 Futures (as of Jan 19, 2021 at 2.55 p.m.)

Source: Business Insider

The U.S market is closed due to the Martin Luther King Junior Day. As U.S. citizens enjoyed a long weekend only days before President-elect Biden’s inauguration, the SPX500, NAS100, and US30 futures traded flat. However, as reported by Market Watch, all three major indices have marked gains in the year to date with NAS100 gaining 1.7%, SPX500 gaining 1.1%, and US30 up by 1.3%.

Traders are questioning if a bubble is the market is underway, or already here. The Chief Investment Officer at UBS Global Wealth Management, Mark Haefele believes that the preconditions for a bubble are in place. These include low financing costs and a combination of high accumulated savings and low prospective returns. He also cautions traders to pay attention to risks of monetary policy reversal and rising equity valuations.

In related news, President-elect Joe Biden yesterday confirmed Gary Gensler as chairman of the Securities and Exchange Commission (SEC) and Rohit Chopra as head of the Consumer Financial Protection Bureau (CFPB). This could herald a tougher stance on Wall Street for the next four years. Is Wall Street in for an uncomfortable four years?

There is a heightened sense of anxiety as Joe Biden’s inauguration gets closer. The U.S. Capitol had gone into lockdown for over an hour on Monday, after a fire at Washington Homeless Encampment during the inauguration rehearsal.

As Biden starts off his term as U.S. President, he is stepping into his new role amidst a lot of uncertainties and fear. He is inheriting a country slewed by the pandemic, as well as a high amount of national debt. The struggle to find the balance between overcoming the pandemic and driving the economy will be a real one for the Biden administration. True to form, President’s Trump exit is proving to be nothing short of dramatic.

After the unveiling of the $1.9 trillion stimulus plan, the question is now arising on how much of the package can actually make it through Congress given Republican opposition. Needless to say, President-elect Joe Biden has got his plate full during his early days in the office.

All of these is giving cause to a certain degree of cautiousness in the market. Aside from this, traders would also be keeping watch for the earnings from Morgan Stanley, Goldman Sachs, and Netflix will also be released this week.

Overall, the world is watching closely as a new president gets ready to take his place. But an important question here is: will traces of the old president still remain? 

FOLLOWME User Sentiment (as of Jan 19, 2021 at 3 p.m.)

SPX500

Short – 82.62%

Long – 17.38%

NAS100

Short – 70.79%

Long – 29.21%

US30

Short – 71.17%

Long – 28.83%