Traders Market Weekly: Avoid Whiplash, Fasten Your Seatbelts

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  • #33456

    February 6 – 12 2022 FEAR NOT Brave Investors Where have we been and where are we going? Join our weekly market thread on Traders Community… Image: EC
    [See the full post at: Traders Market Weekly: Avoid Whiplash, Fasten Your Seatbelts]

    • This topic was modified 4 months, 4 weeks ago by TradersCom.
    • This topic was modified 4 months, 3 weeks ago by CautiousInvestor.
    • This topic was modified 4 months, 3 weeks ago by TradersCom.
    • This topic was modified 4 months, 1 week ago by TradersCom.
    #33462

    FUTUREs just went GREEN … Bulls will soon be in HEAVEN as my FAV Christian type group proclaims (with outstanding guitar work) … Volatility & market dangers abound — so Cavet Emperoer to WALL STREET bulls … Bambi & me are putting our CASH under the mattress for now 😉 🙂

    #33464
    TradersCom
    Keymaster

    Good morning CI – Los Lonely Boys – good fun a little Tex Mex music. We have their Christmas album 🙂

    #33465
    Truman
    Participant

    Another Week:

    S&P Futures vs Fair Value: -10.0
    10 yr Note: 1.913%
    USD/JPY: 115.05 -0.14
    EUR/USD: 1.1426 -0.0023
    Europe: FTSE: +0.1% DAX: 0.0% CAC: -0.2%
    Asia: Hang Seng: 0.0% Shanghai: +2.0% Nikkei: -0.7%
    Gold (1813.20 +5.40) Silver (22.76 +0.28) Crude (91.18 -1.15)

    #33466
    Truman
    Participant

    The global equity markets are mildly mixed heading into the the start of the week. S&P Futures are down about 10 points to trade around the 4482 area. The market has been relatively quiet with a range bound session high of 4504.25 and a low of 4471.25.

    In Asia, China rose 2% while Japan slid 0.7%. Chinese markets returned to action with a tidy advance following the Lunar New Year festivities. Traders dismissed the latest Caixin Services PMI data that showed a slower expansion in January to 51.4 compared to the December reading of 53.1. In Japan, the Nikkei was weighed down by semiconductors with Advantest losing 3% and Tokyo Electron shedding over 1%.

    In Europe, the major bourses are little changed. The DAX may be stalling after German Industrial Production missed expectations. The December print dropped 0.3% compared to the forecast of 0.4%. Outside of that, the economic slate was minimal. Mining stocks are representing notable strength with names such as Antofagasta, Glencore and Anglo American advancing by about 1%.

    #33467
    Truman
    Participant

    Key factors driving the futures market:

    Some M&A buzz with Spirit Airlines (SAVE) and Frontier Airlines (ULCC) planning to merge; press reports suggest Peloton (PTON) is being eyed by a few suitors
    Continuing rebound bid as the market has shown more resilience of late to selling interest
    NSA Adviser Sullivan says Russia could invade Ukraine relatively soon

    #33468
    Truman
    Participant

    Research calls of note:

    Upgrades: POWI, SNOW, TSM, AWK, AINV
    Downgrades: EXC, SO, APD, BLDP, CI

    #33469
    Truman
    Participant

    Major European indies trade near their flat lines.

    STOXX Europe 600: +0.2% Germany’s DAX: +0.3% U.K.’s FTSE 100: +0.5% France’s CAC 40: +0.1% Italy’s FTSE MIB: -1.2% Spain’s IBEX 35: -0.5%.

    #33470
    Truman
    Participant

    Eurozone’s February Sentix Investor Confidence 16.6 (expected 15.2; last 14.9)
    Germany’s December Industrial Production -0.3% m/m (expected 0.4%; last 0.3%)
    U.K.’s January Halifax House Price Index 0.3% m/m (last 1.1%); 9.7% yr/yr (last 9.8%)
    Swiss January Unemployment Rate 2.3% (expected 2.4%; last 2.4%)

    The spread between Italy’s 10-yr yield and Germany’s 10-yr yield has increased to a level not seen since August.
    European Central Bank policymaker Knot said that he expects that the first ECB rate hike will be made in Q4.

    #33471
    Truman
    Participant

    Equity indices in the Asia-Pacific region began the week on a mixed note while markets in New Zealand were closed for a holiday.

    Japan’s Nikkei: -0.7% Hong Kong’s Hang Seng: UNCH China’s Shanghai Composite: +2.0% India’s Sensex: -1.8% South Korea’s Kospi: -0.2% Australia’s ASX All Ordinaries: -0.1%.

    #33472
    Truman
    Participant

    China’s January Caixin Services PMI 51.4 (last 53.1)

    Japan’s December Leading Index 0.4% m/m (last 1.7%) and Coincident Indicator -0.2% m/m (last 3.0%)

    Australia’s January Retail Sales -4.4% m/m (expected -4.4%; last 7.3%); 8.2% qtr/qtr (expected 8.1%; last -4.4%). December AIG Services Index 56.2 (last 49.6) and MI Inflation Gauge 0.4% m/m (last 0.2%)

    Domestic tourism was down 2% during the Lunar New Year holiday in China while box office sales were down 23%.
    Press reports indicated that China has not meaningfully complied with the Phase 1 trade deal.
    China’s Caixin Services PMI fell to its lowest level since August in the January reading.

    #33473
    Truman
    Participant

    Spirit Airlines (SAVE 24.35, +2.62): +12.1% after agreeing to merge with Frontier Airlines (ULCC 12.08, -0.31, -2.5%) in a $6.6 billion cash-and-stock deal. On a related note, both companies beat EPS estimates.
    Peloton (PTON 31.98, +7.38): +30.0% amid reports indicating that the company is drawing acquisition interest from companies including Amazon.com (AMZN 3158.00, +5.21, +0.2%) and Nike (NKE 146.00, +0.61, +0.4%).
    Tyson Foods (TSN 93.35, +5.06): +5.7% after beating top and bottom-line estimates.
    Hasbro (HAS 96.00, +2.08): +2.2% after beating top and bottom-line estimates and raising its dividend by 3%.
    Cerence (CRNC 48.50, -15.08): -23.7% after guiding Q2 revenue below consensus and lowering its FY22 revenue below consensus. The company’s CFO will retire on March 11.

    #33474
    Truman
    Participant

    Japan’s Nikkei: -0.7%
    Hong Kong’s Hang Seng: UNCH
    China’s Shanghai Composite: +2.0%
    India’s Sensex: -1.8%
    South Korea’s Kospi: -0.2%
    Australia’s ASX All Ordinaries: -0.1%

    #33485

    OLYMPIC MEDAL COUNT LINK (ranked by # of GOLDs)
    https://olympics.com/beijing-2022/olympic-games/en/results/all-sports/medal-standings.htm

    #33487
    TradersCom
    Keymaster

    Australia doing good for a non winter sport country 1 gold and bronze

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