Red Sea Blockade
Note the following:
Japan
The Japanese yen fell below 163 per dollar before recovering. This level last occurred in 1986. The proximate cause is rising oil due to Houthis blockading the Red Sea. Japan is a major oil importer, getting most of its oil from the Middle East.
The fall in yen is raising alarm bells in Japan. There are indications that the Bank of Japan is considering increasing interest rates faster.
Japan is important due to the carry trade. In the carry trade, funds have borrowed hundreds of billions of dollars in Japan to invest in the U.S., lately in the AI trade.
Magnificent Seven Money Flows
Most portfolios are now heavily concentrated in the Mag 7 stocks. For this reason, it is important to pay attention to early money flows in the Mag 7 stocks on a daily basis.
In the early trade, money flows are positive in Alphabet (GOOG) and Microsoft Corp (NASDAQ:MSFT).
In the early trade, money flows are negative in Tesla (TSLA) and Apple Inc (NASDAQ:AAPL).
Momo Crowd And Smart Money In StocksOil
API crude inventories came at a build of 2.603M barrels vs. a consensus of a draw of 1.5M barrels.
Bitcoin
Bitcoin (CRYPTO:BTC) is range bound.
What To Do Now
Consider continuing to hold good, very long term, existing positions and add tactical positions based on signals.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.