[Platinum Insights] (5.24.23)

Good morning.  

U.S. stock index futures slipped on Wednesday as yet another round of talks between the White House and Republican representatives over raising the debt ceiling failed to make a breakthrough.  

Tuesday’s $35 billion auction of 21-day cash management bills that cover early June required a whopping 6.2% high yield – more than a percentage point above Federal Reserve policy rates. One-month bill yields are hovering just under 5.9%.  

Investors also await minutes from the Federal Reserve’s May 2-3 meeting, due later in the day, to assess the central bank’s interest-rate path. Rates futures are not in the 6% range yet by any stretch, but they put a one-in-three chance of another quarter-point Fed rate hike next month and have priced out the likelihood of multiple rate cuts by year-end.  

Mortgage applications in the US declined 4.6% in the week ended May 19th, 2023, following a 5.7% drop in the previous week, data from the Mortgage Bankers Association data showed.  

In corporate news, the artificial intelligence frenzy will be tested with results from chipmaker NVIDIA, the fifth biggest U.S. stock later today.  

WTI crude futures jumped toward $74 per barrel. Gold held below $1,980 an ounce while the yield on the US 10-year Treasury note was around 3.7%.  

The three major averages fell during Tuesday. The S&P 500 lost 1.12%, while the Nasdaq Composite and the Dow Jones Industrial Average declined 1.26% and 0.69%, respectively.  

Technical analysis can provide signals for trade management, such as trailing stops or taking partial profits, as the market moves in the desired direction. By using technical analysis to define their risk levels, swing traders can establish disciplined risk management strategies and avoid substantial losses if the market reverses. Check out the Platinum Channe ‘s education blog.  

Have a great day