(DAILY NOTION): A Chink Appears in Wall Street's Armour, Next Mover: Nonfarm Payrolls, Earnings Report

NASDAQ 100 (as of Feb 1, 2021 at 12 p.m.)

Source: Yahoo Finance

SPX 500 Futures (as of Feb 1, 2021 at 12 p.m.)

Source: Yahoo Finance

US30 Futures (as of Feb 1, 2021 at 12 p.m.)

Source: Yahoo Finance

The SPX500 futures rose 0.31%, followed by US30, which gained 0.30% and the NAS100, which was up 0.16%. The GameStop saga, fast becoming known as the battle of Wall Street versus Main Street, took its toll on Wall Street, as all three major indices recorded their worst week ever, and overall month since October 2020.

With Elon Musk’s famous tweet on Bitcoin that subsequently led the price of Bitcoin to shoot up 20% and $387 million of short liquidations on major exchanges, many are watching cautiously if the volatility will go on this week.

On top of that, traders would also be watching out for signs on the economic recovery via the earnings report from Amazon and Paypal this week. Another indication of the economic recovery will be in the results of the nonfarm payrolls, due this Friday. While forecast point towards a slight increase in hiring, what would the actual results show? Meanwhile, the unemployment rate is forecast to remain at 6.7%. However, this is still double the pre-pandemic level.

Several representatives from Federal Reserve (Fed), such as New York Fed President, John Williams and Boston Fed President, Eric Rosengren are scheduled to deliver speeches this week, which would further give traders insight on the economy. Concerning the Biden Stimulus Package, the U.S. Senate is slated to begin working on the legislation this week. President Biden has also voiced out that he is prepared to support passing the Covid-19 relief, whether or not the Republicans are on board. The Republicans and several Democrats have not been in favor of the stimulus package due to its large size; fearing the impact on the already high U.S debt levels.

Wall Street has been shaken up by the meteoric rise in GameStop prices. Does this point towards a crack in the heavily guarded armour of Wall Street? One thing is for certain, and that is: times have changed, and will Wall Street change with it?

FOLLOWME User Sentiment (as of Feb 1, 2021 at 12.50 p.m.)

SPX500

Short – 71.30%

Long – 28.70%

NAS100

Short – 60.52%

Long – 39.48%

US30

Short – 65.35%

Long – 34.65%

#BidenStimulus#