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”

Market Wrap – NFTS and NFP, Oil Trades Higher as GameStop and MEMEs Run While Tech Flounders

Following yesterday’s blood on the street after the Fed Minutes carnage stock markets were much calmer after S&P 500 found technical support at the 50-day moving average (4672). Treasury yields continue to push higher ahead of the NFP report. Oil again was the outlier with WTI trading over $80 on Kazakhstan unrest. Natural gas was flat after it’s EIA storage report. On the speculative end we saw Bitcoin and Cryptocurrencies again break levels lower. Risk seems relative, MEME stocks flew … Continue reading “Market Wrap – NFTS and NFP, Oil Trades Higher as GameStop and MEMEs Run While Tech Flounders”

Market Wrap – Ark Runs Aground with Blood on The Streets

Day 3 of 2022 continued volatility morphing into Carnage as the Fed Minutes reminded the hawkishness of the last Fed Meeting. The highflyers that infested the Nasdaq and Russel and the ARK ETFs were trashed. Oil bounced strongly after its EIA but was dragged into the risk asset selling. On the speculative end we saw Bitcoin and Cryptocurrencies break levels lower. The 2-yr yield, which tracks expectations for the fed funds rate, rose seven basis points to 0.83%. After yesterday’s … Continue reading “Market Wrap – Ark Runs Aground with Blood on The Streets”

Market Wrap – Market Psychology of Dow and NASDAQ on Bond Moves

Day 2 of 2022 brought volatility with a split personality, the Dow closed at record highs while the NASDAQ sold off. Deja vu the 4800 on SPX and $180 on AAPL after $182.86 8$3 trillion market cap. Oil bounced strongly after OPEC+. On the speculative end we saw Cryptocurrencies down again. Treasury market steepening in the yield curve continue today driven by selling pressure at the back end. After yesterday’s 10-year yield rise was the largest first day jump since 2009 … Continue reading “Market Wrap – Market Psychology of Dow and NASDAQ on Bond Moves”

Market Wrap – Apple Hits Three Trillion, US Dollar Gains Most in Two Months as Yield Jump

We are off and running for 2022. Deja Vu the 4800 on SPX but we blew through $180 on AAPL to trade to $182.88 and get the $3 trillion market cap. Oil and natural gas both bounced. On the speculative end we saw Cryptocurrencies down again. A jump in U.S. Treasury yields helped the dollar post its largest daily gain in nearly two months, Treasury market steepening in the yield curve today driven by selling pressure at the back end. The … Continue reading “Market Wrap – Apple Hits Three Trillion, US Dollar Gains Most in Two Months as Yield Jump”