POWER: Estonia Cancels €2.6bn of Offshore Wind Funding

• Stocks are gaining early Wednesday, support for semiconductor stocks helping SPX Eminis climb back near early December all-time highs (6178.75).
• Currently, the DJIA trades up 115.25 points (0.26%) at 44143.15, S&P E-Minis up 50.25 points (0.83%) at 6134.5, Nasdaq up 303.7 points (1.5%) at 20060.89.
• Information Technology and Communication Services sectors outperformed in early trade, chip stocks supporting the former as noted: Monolithic Power +8.48%, Lam Research +4.07%, Applied Materials +3.62% while Nvidia gained 3.55%.
• Interactive media and entertainment stocks led gainers in the Communication Services sector: Netflix rallying over 11% in the first half as subscriptions soar, Meta +2.57%, Warner Bros +1.54%.
• On the flipside, Utilities and Real Estate sectors underperformed in the first half, gas and multi-energy providers weighing on the former: Edison International -3.63%, Dominion Energy -3.45%, Ameren -3.03% while PG&E declined 3.01%.
• Investment trusts, particularly health care and residential REITs weighed on the Real Estate sector: Ventas -2.59%, Healthpeak Properties -2.27%, and Equity Residential -2.05%.

• RES 4: 110-25   High Dec 12
• RES 3: 109-31   High Dec 18   
• RES 2: 109-16+ 50-day EMA  
• RES 1: 109-04/109-06 High Jan 21 / High Dec 31 
• PRICE:‌‌ 108-17+ @ 16:52 GMT Jan 22
• SUP 1: 108-00/107-06 Low Jan 16 / 13 and the bear trigger    
• SUP 2: 107-04   Low Apr 25 ‘24 and a key support  
• SUP 3: 107-00   Round number support
• SUP 4: 106-11   2.00 proj of the Oct 1 - 14 - 16 price swing  

The medium-term trend condition in Treasury futures remains bearish and the recovery that started Jan 13, appears to be a correction. The contract has traded through the 20-day EMA, at 108-17+. This exposes 109-06, the Dec 31 high, and 109-16+, the 50-day EMA. A clear break of the 50-day EMA is required to strengthen a bullish theme. The bear trigger is unchanged at 107-06, the Jan 13 low.

ERM5 98.00 / 98.125 / 98.25 call fly, bought for 1.25 in 11.5k

• The latest upside ERM5 option structure this week.
• Calls outnumber puts by 4.5 to 1 today.