Yahoo Finance's Jared Blikre breaks down how markets opened on Wednesday.
- On taking a look at the major averages. Right now, we're holding onto gains across the board. Let's get on down to the New York Stock Exchange, where Yahoo Finance's, Jared Blikre, is standing by. Jared.
JARED BLIKRE: Let's go straight to the YFI Interactive. Usually on these FOMC days, we see a little bit of drift. But we're getting some upward thrust right now, and I want to show you a picture of the two-day price action in the NASDAQ composite. And you can see we are right back up to the unchanged line just slightly in the green here.
So I guess my big takeaway is this is what happens in a summer when there's not a lot else going on. We have tons of news but not a lot of traders actively trading. And so it's important to realize that a lot of these moves don't necessarily have momentum in either direction they're going. I said yesterday-- yeah, I had a little bit of a warning, I didn't want to be dire. But this comes down to what I think is a coin toss, 50/50. This market could rally 20%, it could tank 10% in the next few weeks.
Today, we're seeing the mega caps getting some nice love here off of those Microsoft and Alphabet earnings. Interesting to see the initial direction yesterday on Microsoft was down. But here's one thing that's really getting my attention. This is the 10-year T-note yield, and this chart has me a little bit excited here. This is a giant head and shoulders formation, I'm trying to draw it on here. We'll see if the YFI interactive can catch up with me. But if this breaks to the downside, we could see a huge, huge risk on rally. The question is, when would that happen?
Now, this could take some time to complete or it could happen today. So interesting to see everybody waiting for that negative GDP print tomorrow morning, guys.
- Jared, staying on the markets, of course, Cathie Wood looks to be making some power moves on Coinbase.
JARED BLIKRE: Yeah, she's selling out of Coinbase. Sold $75 million shares. And this comes as the company is under investigation, a probe for selling securities. And guess what? They're selling tokens, but those are classified as securities by Gary Gensler. I think that Gary Gensler is going to end up regulating the entire industry, especially the exchanges. And it's going to look a lot more like Wall Street than DeFi.
So the handwriting is on the wall here. These guys are going to pay a massive fine, and they're going to be heavily regulated. And all these scams that have been perpetrated over the last few months, if not years, a lot of that is going to come to a screeching halt.
- Beware those 20% declines down there, Jared. Hang tough. We'll talk to you later.