Market Wrap – That’s A Bounce, Bear Market Rally or Capitulation

Stock markets in the US opened sharply down with end of the world calls about Russia at war, Omicron and rising interest rates. The small cap Russell 2000 outperformed with a 2.3% gain after being down as much as 2.8%.  CBOE Volatility Index closed at 29.90+3.6% after being over 35%. At the lows the Nasdaq Composite was down 19.2% from its all-time high, the S&P 500 was down 12.4% from its all-time high and the Russell over 20% down. We look at … Continue reading “Market Wrap – That’s A Bounce, Bear Market Rally or Capitulation”

Market Wrap – Blood on The Streets with Nasdaq on Track for The Worst January Ever

A brutal week for US stocks Nasdaq is on track to have the worst January ever. The Russell 2000 closed at its 52-week low. Oil moved around with geopolitical risks in the Ukraine and risk assets. U.S. Treasuries finished the week firmly higher with longer tenors reclaiming losses from recent days. Cryptocurrencies collapsed with Bitcoin and Ethereum having outsized losses. Stock markets have been de-risking at what better reminder than a needless overpriced indoor bike! After the market Netflix warned sending … Continue reading “Market Wrap – Blood on The Streets with Nasdaq on Track for The Worst January Ever”

Market Wrap – Peloton and Netflix Bring Out the Bears

Well so much for that. Markets began swimmingly then started to reverse at key technical levels and much like yesterday down it went. The mood changed rapidly after Peloton warned and halted production, reminded the dribblers of the trash they owned and from positive to negative it all went. Stock markets have been de-risking at what better reminder than a needless overpriced indoor bike! After the market Netflix warned sending the bears out in force. CME’s FedWatch Tool is pricing in the … Continue reading “Market Wrap – Peloton and Netflix Bring Out the Bears”

Market Wrap – U.S. Treasuries Solid Gains Across the Curve as Stock Markets De-Risking Continues

Markets continued down from yesterday trend breaks. Oil traded at new 5-year highs; U.S. Treasuries ended Wednesday with solid gains across the curve. Again, stock markets lower from more de-risking effort attributed to angst over rising interest rates and potential earnings disappointments. CME’s FedWatch Tool is pricing in the probability of four rate hikes in 2022. Market chatter continues of the Fed raising the target range for the fed funds rate by 50 basis points at its March meeting. Enjoy live commentary from … Continue reading “Market Wrap – U.S. Treasuries Solid Gains Across the Curve as Stock Markets De-Risking Continues”

Market Wrap – Stock Markets De-Risking with Oil & Interest Rates Higher

Markets continue to be rattled by Geopolitical fissures from Kazakhstan to Ukraine to UAE and Iran. Political incompetence from London to Washington and so much more aren’t smoothing the situation. Oil traded at 5-year highs; the 10-year note hit the highest level in seven years. The VIX traded back up with stock markets lower from more de-risking effort attributed to angst over rising interest rates and potential earnings disappointments after $GS sold off. CME’s FedWatch Tool is pricing in the probability of … Continue reading “Market Wrap – Stock Markets De-Risking with Oil & Interest Rates Higher”

Market Wrap – Reversal Day, Natural Gas, NASDAQ Taken Out Behind the Woodshed

What goes up to fast, must come down. Natural Gas was a poster boy for KnovaWave past few days up 80 down 50. The market bounce ran into head winds after today’s PPI and Brainard reminded us of the ongoing inflation problem. Oil held on for its part. We saw multiple banks hit 52-week highs ahead of the big earnings kick off with $JPM, $WFC, $C and $BLK Friday before the open. Around the table today was packed with geopolitics, … Continue reading “Market Wrap – Reversal Day, Natural Gas, NASDAQ Taken Out Behind the Woodshed”

Market Wrap – Oil and Natural Gas Prices Soar as Inflation Hits 40 Year Highs

The market bounce continued to recover off the strong technical levels as volatility stalled. Oil continued its bounce over $82.20 as Natural gas soared over $4.80 on freezing weather. The oil and gas prices saw multiple energy stocks hitting 52 highs. Tomorrow we have PPI to feed the inflation mantra. Around the table today was packed with oil and gas, semiconductors and Bitcoin v GBTC. Enjoy live commentary from Our Trading Room at YouTube as the day wraps up – … Continue reading “Market Wrap – Oil and Natural Gas Prices Soar as Inflation Hits 40 Year Highs”

Market Wrap – Robust Oil and Gas Prices Coupled with a Measured Powell See Stock Bounce Continue

The market bounce continued to recover as we saw a measured and contrite Fed President Powell before the Senate as more short covering came into effect off the strong technical levels as volatility stalled. Recall a clear buy signal for us is when the bulls of the highflyers are now rabid bears is to be wary as TINA came into effect. Oil rebounded strongly to $81.50 as did Natural gas on freezing weather. The oil and gas prices saw multiple … Continue reading “Market Wrap – Robust Oil and Gas Prices Coupled with a Measured Powell See Stock Bounce Continue”

Market Wrap – Stocks Bounce Hard, Is There Is No Alternative?

The morning was riddled with doom as stock markets cratered and then short covering came into effect off strong technical levels as volatility stalled. A clear buy signal for us is when the bulls of the highflyers are now rabid bears is to be wary. We saw positive divergence and then buying came in, the ‘Is There Is No Alternative (TINA)’ algos took hold. While the S&P closed lower for the fifth consecutive day and the Dow closed lower for … Continue reading “Market Wrap – Stocks Bounce Hard, Is There Is No Alternative?”

Market Wrap – S&P, Nasdaq Close Lower for The Week

The S&P and NASDAQ closed lower for the fourth consecutive day and the Dow closed lower for the third consecutive day with the catalyst the Hawkish Fed minutes. Despite the US adding the lowest number of new jobs in twelve months in December with just 199,000 the bond market spooked on average hourly earnings (M/M) rising 0.6%. This brought similar negative reactions to the stock markets. Oil began the day over $80 cut came down with risk assets and world … Continue reading “Market Wrap – S&P, Nasdaq Close Lower for The Week”