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Stock Futures Trade Higher, Bitcoin On Fire

Stock Futures Trade Higher, Bitcoin On Fire

Stock futures are trading higher on the final trading week of the year. Traders are pleased that President Trump has finally given up on his demand, and he has signed the coronavirus aid package bill. Trump wanted to increase the stimulus cheque payment to $2,000 for Americans, but he failed to support lawmakers.

Nonetheless, the Dow Jones futures are up over 140 points today, and this means that the index is set to move towards its record highs once again. The S&P 500 and Nasdaq futures are also trading higher, but there isn’t too much bullish momentum there. 

The S&P 500 remained almost flat last week, mostly because of the shorter holiday week, and this week isn’t going to be much different as many traders are away for the holiday period. Traders are likely to book some more profit before the year-end, and if this happens, it will be no surprise as the Nasdaq is already up more than 40% year-to-date. So taking some chips off the table makes perfect sense.

Nearly one million Americans have received Covid-19 vaccines, and pharma companies like Moderna and Pfizer are trying their best to keep up with demand. Dr. Anthony Fauci has already warned that it is highly likely that coronavirus numbers may spike even more in the U.S. after the Christmas period. If this becomes a reality, it means tougher restrictions, which are likely to translate into lower economic activity. 

Bitcoin on Fire 

As for Bitcoin, the cryptocurrency is on fire. The crypto king made another all-time high over the weekend and made twitter go mad. There is a lot of enthusiasm among crypto traders who truly believe in this asset class, and they know that the rally has only begun because we were only recovering losses for the past few years. Bitcoin crossed the 28K price level over the weekend, and the next major target is 35K. However, the number that is going to rock the news headlines will be 50K. It is possible that it will take us some time to get there because this time the upward move for the Bitcoin price isn’t the same as 2017. The Bitcoin price is moving higher in a more gradual manner, yes, the price does experience a spike, but there is a period of consolidation or a healthy retracement.

Gold Price Takes Aim at 1,900 

Gold prices have tried to break above the 1,900-price level, a critical price point for bulls. However, the price has failed to win this battle, and currently, it is trading at 1885. The more optimistic sign in terms of the gold price is that the precious metal’s price is trading above the 50, 100, and 200-day SMA on the daily time frame, and this shows that the bulls are in control of the price. Having said that, for the bulls to be fully in control, the 50-day SMA needs to cross above the 100-day SMA, which currently is trading below this average. 

On the fundamental gold side, traders are pleased that Trump has signed the coronavirus bill, which is likely to support the gold price.